If you own the policy and you're not financially supporting your ex-spouse after the divorce, you can likely remove them as your policy's beneficiary. If you're on the hook for alimony or child support, a judge may require you to keep your ex-spouse as a beneficiary so support continues if you were to die.
Individual policies
It is common for both spouses to be insured, although not required. Several types of policies are available, including: Term life insurance: Term life insurance covers a specific period, such as 10, 20, or 30 years. It offers a death benefit if the insured person dies within the term.
You can remove your spouse from your estate planning documents at any time. In some situations, you might be required to provide your soon-to-be-ex-spouse with notice of changes. Talk to a lawyer about whether this unique requirement applies to your situation.
The insured parties cannot be changed. As long as he wants to continue to pay the policy, there is nothing you can do to cause the policy to be canceled or to have you removed as an insured because you being an insured was an integral part of the underwriting of the policy. I'm sorry!
Removal can typically only occur after the divorce is legally completed. During this period, both spouses must adhere to any court orders regarding insurance coverage to avoid legal issues. Health insurance plans often cover eligible dependents, including children, but a spouse may be removed once the divorce is final.
If there is a beneficiary other than the spouse, the spouse cannot override it. However, they are usually entitled to half the death benefit because the law splits community property in half. Half the benefits go to the spouse and half to the listed beneficiary.
In most states, it is impossible to totally disinherit your spouse in a will. Spouses have a right of election, and can claim a certain fraction of the estate as their elective share, no matter what the will says. In community property states, a surviving spouse owns half of their shared property.
If you are married, by law, your spouse must be named as the beneficiary. If you enter someone else, marital laws will take precedent and your spouse will receive the asset anyway. The only way around this is to get your spouse to sign a waiver.
In many states, you may remove your spouse from your home (before or during a divorce) by seeking a protection order, enforcing an existing marital agreement or filing for a temporary injunction in divorce court.
If you are married or in a common-law relationship of more than two years, your spouse is automatically your beneficiary.
Many young families only buy individual life insurance for the working spouse or partner because if that person dies, they need to replace the income they would have otherwise provided. However, when each person earns approximately the same amount, they are equally dependent on each other's income.
You need a life insurance policy worth 10 to 12 times your annual income. You can use our free term life calculator to find out exactly how much that is. If you're a stay-at-home parent, you need a policy worth $250,000–$400,000.
When you die, the beneficiary on your life insurance policy will receive the death benefit. You can name multiple beneficiaries to receive either equal or different portions. In most states, the primary beneficiary will receive the full payout even if they're not your current spouse.
So the answer is no, unless the beneficiary is changed, that is who will receive the money upon the account owner's death, regardless of a divorce. In many divorces, savings accounts and retirement accounts are divided as part of the separation agreement.
Whether you can remove your ex-spouse as a beneficiary depends on the terms of your divorce. If you're the policyholder and won't be supporting your ex after the divorce, you might be able to remove them. But if you have to pay alimony or child support, you may have to keep them as a beneficiary.
If you do not designate a beneficiary, your spouse automatically inherits your 401(k) upon your death.
In California, the legal framework for estate planning provides individuals with the freedom to decide how they want to distribute their assets upon their passing. The state does not impose any requirements regarding leaving an estate to children or any other specific beneficiaries.
Here's an example of a straightforward disinheritance clause: “I intentionally and with full knowledge omit to provide for my son, John Smith, and it is my specific intent that he shall receive no part of my estate.” This level of clarity significantly reduces the likelihood of legal disputes later on.
Yes, you can create a trust without your spouse. This is often done to maintain control over assets or protect inheritances for children from a prior marriage.
If you are a resident of certain states, you may be required to list your spouse as your primary beneficiary and designate him or her to receive at least 50 percent of the benefit. In some states, you can name someone else with your spouse's written permission.
In California, designating a former spouse as the beneficiary to a life insurance policy prior to or during marriage will stand, unless: The property settlement or divorce decree specifically provides for a contrary result. The policy holder changes the beneficiary designation.
As a standard life insurance beneficiary rule, you must explicitly identify each beneficiary with their full name and Social Security number. Pro tip: Do you live in a community property state? If so, you'll need your spouse's consent to designate a primary beneficiary other than them.