Ex-Spouse Life Insurance Beneficiary After Death

Whether You Get the Payout Depends on the Type of Policy

Your ex-spouse died and life insurance is in the picture. Maybe you're still listed as beneficiary. Maybe the divorce decree required them to maintain a policy for you or the children. Maybe their new spouse is contesting your claim.

The answer to "who gets the money?" depends on two things: the type of policy and whether your state has a revocation-on-divorce statute. These two factors can point in opposite directions — and federal law sometimes overrides state law entirely.

State Revocation-on-Divorce Laws

Most U.S. states have statutes that automatically revoke beneficiary designations in favor of a former spouse when a divorce is finalized. Under these laws, the ex-spouse is treated as if they predeceased the policyholder. The payout goes to the contingent beneficiary, or if there isn't one, to the estate.

This means that even if your ex-spouse never updated their beneficiary form after the divorce, the state law effectively removes you. The insurance company applies the revocation statute and pays someone else.

But there's a critical exception.

The ERISA Override

Employer-sponsored life insurance — the kind that comes as a workplace benefit — is governed by the federal Employee Retirement Income Security Act (ERISA). And the U.S. Supreme Court ruled in Egelhoff v. Egelhoff (2001) that ERISA preempts state revocation-on-divorce statutes.

What this means in practice: if your ex-spouse had you listed as beneficiary on their employer group life insurance policy and never changed it, the plan administrator must pay you — regardless of the divorce, regardless of state law, regardless of what the divorce decree says about who should receive what.

ERISA plan administrators are required to follow the written beneficiary designation on file. They cannot look at divorce decrees, state statutes, or family agreements. The name on the form gets the check.

This also works in reverse. If the divorce decree required your ex to keep you as beneficiary on their employer life insurance and they changed it to their new spouse, ERISA still follows the form on file. You'd need to pursue a breach-of-contract claim against the estate — not the insurance company — to recover.

Private vs. Employer Policies: A Quick Reference

If You're the Named Beneficiary

Contact the insurance company or the employer's HR/benefits department as soon as you have the death certificate. You'll need:

• Certified copy of the death certificate
• Your identification
• The policy number (if you have it; if not, ask the insurer whether it can locate the policy using the deceased's name and Social Security number)
• Your divorce decree (some carriers request it even when the designation is clear)

Ask the insurer for its current claim-processing timeline. If the deceased's family or current spouse contests the claim, the insurer may file an interpleader action — asking the court to decide who gets paid — which can delay the payout.

If You Should Be the Beneficiary but Aren't

If your divorce decree required your ex-spouse to maintain life insurance naming you or your children as beneficiaries and they failed to do so, you may have a claim against the estate. The payout itself goes to whoever is named on the form; whether you can recover from other estate assets depends on the decree, state law, and the estate's available assets.

This claim may need to be filed in probate court, and timing matters. Estate creditor-claim deadlines vary by state and can be short, so confirm the applicable deadline promptly.

Children as Beneficiaries

If your children are named as beneficiaries but are minors, the insurer may require a court-appointed guardian, trustee, or custodian to receive or manage the proceeds. The rules and withdrawal authority vary by state and by how the policy is set up; do not assume you can manage or spend the funds without the required authority.

If the divorce decree required insurance to secure child support, the insurer may pay the beneficiary (you) rather than the children — depending on how the policy and decree were structured.

For a complete walkthrough of life insurance claims, ERISA rights, and the other financial claims available after an ex-spouse's death, the When Your Ex-Spouse Dies toolkit includes a financial claims tracker and step-by-step instructions for each filing.