How Federal ERISA Law Addresses Divorce and Life Insurance – ERISA trumps state law if the policyholder gets group life insurance via their workplace. Under ERISA, a divorce cannot affect a beneficiary designation. Therefore, if a policyholder resides in a state that allows revocation upon divorce, designates their spouse as the beneficiary of their life insurance, and then gets divorced, their ex-spouse remains the beneficiary.
Does a divorce decree overrule a specified beneficiary in Florida?
In Florida, does a divorce order supersede a designated beneficiary? – According to Florida law, if a former spouse is designated as a beneficiary on a life insurance policy, that spouse’s status as a beneficiary is nullified upon divorce. This clause also applies to employee benefit plans, retirement funds, payable upon death accounts, other payable upon death accounts, annuities, and contracts of a similar nature.
- After a divorce in Florida, you must alter the beneficiary on all of your accounts, since your ex-status spouse’s as beneficiary will be immediately revoked.
- This implies that the benefits will be transferred in accordance with Florida law and not as you have specified.
- Additionally, if you forget to amend the beneficiary, the corporation that made the payment is not accountable if the payment is issued to the incorrect recipient.
Section 732.703 of the Florida Statutes was created to safeguard divorcees by preventing the former spouse from receiving benefits mistakenly. Today, § 732.703 deems any past spouse void unless they are confirmed as a beneficiary following a divorce. If your divorce decision stipulates that your ex-spouse must keep life insurance to guarantee an alimony or child support obligation, it is imperative that you are reinstated on the policy once the divorce is finalized.
Ex-Right Spouse’s to Inherit From the Decedent’s Estate Once a divorce has been finalized and assets have been divided between the former spouses, the former spouse often has no entitlement to inherit from the deceased spouse’s estate.
Who may modify a life insurance policy’s beneficiary?
Rarely, only the policyholder may alter the beneficiaries of a life insurance policy. Here is how and when to alter a beneficiary, as well as when you may require another person’s approval. In most instances, only the policyholder can modify the beneficiary designation.