Changing life insurance beneficiaries during a divorce can create unexpected issues. Most couples will appoint their spouse to be the beneficiary for their life insurance plans. Because life insurance is supposed to help in the event that both you and your income are gone, your spouse seems to be the most logical option to be named as a beneficiary. When you are married, your finances become much more intertwined as together you pay the mortgage, make joint purchases, and perhaps, raise children. If you pass away and you had named your spouse as the beneficiary in your life insurance, your surviving partner will continue to be able to provide for themselves and your family, especially if you were the higher-earning spouse.
After a divorce, it is likely that you will no longer want your ex to be your beneficiary, especially if it was not an amicable split. If you and your former partner did not have children together, then there really isn’t any reason to keep them as your beneficiary on your life insurance policy. Because most policies are revocable, you are able to appoint a new beneficiary whenever you need to. There are some policies that are irrevocable where the beneficiary cannot be changed. In order to determine which type of policy you have, you will need to talk to a representative from your insurance company, and they will help you makes changes if possible.
For help and guidance, be sure to at least consult with a family law attorney. Brandon Legal Group handles Family Law matters, including divorce, throughout the greater Tampa Bay area. Give us a call for a free initial consultation.