Does a divorce release someone as beneficary on an insurance policy?
Full Question:
Party A and Party B get a divorce after Party A was named beneficiary on Party B's life insurance policy. After Party's B death, Party A was told that the divorce released her/him automatically as a beneficiary. Can Party A be automatically released as beneficiary or does Party A have rights to receive funds from the policy?
01/05/2007 |
Category: Wills and Estates |
State: Alabama |
#143
Answer:
If the state law says the beneficiary designation of an ex-spouse lapses on divorce, and requires a filing of a new beneficiary designation or language in the divorce decree, and there is no beneficiary, the insurance company would pay a "contigent beneficiary" if any, and if none, the deceased's estate ultimately goes according to the will or the laws of intestate distribution of his/her state.
This may vary from state to state. It also may be impacted by the language of the divorce decree or separation agreement.
