The trainwreck of a divorce...

[Allen Trent]

SC is the only state that I've written that voids life insurance after a divorce, and I've written court ordered life insurance after divorce there as well.

Unless something has changed, NC can only order that an existing policy be kept, or they can voluntarily keep an existing policy with ex-spouse as bene, but the contract is not auto "voided" due to divorce.

From what I have seen, at least more than half the states void rights to own or be beneficiary after divorce unless negotiated in decree or new bene form dated after divorce.

Here is the list: [EXTERNAL LINK] - Pinney Insurance | Life Insurance Beneficiaries and Revocation Upon Divorce

 

[bill3173]

From what I have seen, at least more than half the states void rights to own or be beneficiary after divorce unless negotiated in decree or new bene form dated after divorce.

Here is the list: [EXTERNAL LINK] - Pinney Insurance | Life Insurance Beneficiaries and Revocation Upon Divorce

Oh, yeah, I didn't doubt you, I deal mainly with NC and SC for life. I do have some in Fla, but you have to be careful there, those people are a little dangerous.

 

[shonceman]

I just realized that I don't actually know what happens when a couple is not legally married, but the owner and/or beneficiary relationship is listed as "common law spouse". I have a client who is right now deciding whether to keep or surrender a policy on her common law husband who left her some months ago. Anybody have any experience with a similar situation?

I've been under the assumption that since they weren't legally married, the divorce law wouldn't apply. But I'm just now realizing I might be wrong about that. Texas is a common law state, so…

 

[Allen Trent]

I just realized that I don't actually know what happens when a couple is not legally married, but the owner and/or beneficiary relationship is listed as "common law spouse". I have a client who is right now deciding whether to keep or surrender a policy on her common law husband who left her some months ago. Anybody have any experience with a similar situation?

I've been under the assumption that since they weren't legally married, the divorce law wouldn't apply. But I'm just now realizing I might be wrong about that. Texas is a common law state, so…

Do I Need a Divorce for Common Law Marriage in Texas? | Best Fort Worth Divorce Attorney [2022]

If you are common law married and want to end the union, you will need a divorce for common law marriage in Texas. Find out why.

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[Cenla Agent]

I recently learned of a nightmare scenario. A young man who worked for a government agency was divorced. A few years later he has a child with a woman who he never married. A couple of years after that he drops dead of a heart attack. His father makes the funeral arrangements, thinking that the life insurance will pay. Then they learn that the ex-wife is still the beneficiary on his life insurance. The last I heard she is refusing to relinquish a dime.