Divorce can be a messy process – even at the best of times and in the most amicable situations. As you embark on the journey of dividing your marital assets, the value of your life insurance policy will likely come up for discussion.

Your ability to update a policy’s beneficiary may depend on the stipulations of your divorce and where you live. Yet updating your life insurance beneficiaries is an important step in preparing for the next chapter in your life. So, before making any policy changes, we’ll help you understand how to update beneficiaries and the implications of not doing so.

Steps to update your life insurance beneficiary

If you’re thinking about updating your life insurance beneficiary designation after divorce, there are several steps you need to follow.

1. Understand the requirements of your divorce decree

Some divorce settlements specify that a life insurance policy must be in place with the ex-spouse as the beneficiary. In the case of a divorce involving children, the life insurance death benefit ensures child support will continue if the policyholder suddenly passes away. If you’re unsure whether you’re legally obligated to keep an ex-spouse as a beneficiary, check with your attorney for clarification.

2. Consider new beneficiary designations

You may have listed your now ex-spouse as a primary beneficiary when you first took out a life insurance policy. Depending on your circumstances and whether you have young children, you may or may not want to change this. Allowing an ex to remain as a beneficiary could ensure they can continue financially providing for your family even without your income.

However, if you don’t have kids, you may not see any need for your ex to benefit from a financial payout after your death. Choosing a new beneficiary comes with multiple considerations. If your children are under 18, they aren’t eligible to be a beneficiary and won’t be able to directly receive the funds until that age. In that case, you can set up a trust or choose another adult you trust to manage the funds on behalf of your children.

You may also decide to appoint several beneficiaries – from family members you would like to protect in the future to organizations and charities where you’d like to leave a legacy. Splitting your death benefit among multiple beneficiaries can effectively ensure your policy meets all your distinct financial needs.

3. Update your beneficiaries with your life insurance company

Some life insurance companies may allow you to update your beneficiaries over the phone or online. However, you may also be required to fill out some forms that provide your written consent. In certain situations, you may also need the permission of the previous beneficiary to make the update. When in doubt, reach out to your insurer to clarify the process of updating a beneficiary after divorce.

How long do you have to update a life insurance beneficiary designation after divorce?

While you likely have to wait until your divorce is final to update your life insurance beneficiaries, there’s no strict timeline for how long you have to do so. However, life can be unpredictable, so it’s best to make your changes as soon as possible to ensure the payout goes to the right people if the unexpected happens.

What happens if you don’t remove an ex-spouse as beneficiary?

If you don’t remove your ex-spouse after divorce, you may encounter one of the two scenarios below.

Rules in community property states

If you live in one of the nine community property states listed below, beneficiary rules may vary.

• Arizona
• California
• Idaho
• Louisiana
• Nevada
• New Mexico
• Texas
• Washington
• Wisconsin

It’s best to speak to a financial professional or attorney to understand the implications of divorce on your beneficiary designation in these states.

Revocation upon divorce statutes

Many states have something called a revocation-upon-divorce statute. This basically means that upon your divorce being finalized, your ex-spouse’s designation as a beneficiary in your life insurance policy will be automatically revoked. This is not the case in all states and situations, so it’s best to be proactive and ensure you update your beneficiary designation to reflect your wishes regardless.

Get help with updating your beneficiary designation after divorce

The easiest way to update or change your beneficiaries after getting divorced is to contact your life insurance company. Looking for other options, such as taking out a new life insurance policy? Call a licensed insurance agent at Fidelity Life and ask for a quote that best fits your budget.