Will My Divorce Automatically Eliminate a Former Spouse as Beneficiary of a Life Insurance and Retirement Plan?

Because the beneficiary designation was never updated post divorce finalization, the Supreme Court of Florida has ruled a former spouse still entitled to death benefits payable from a retirement plan. Unambiguous language in the Marital Settlement Agreement can avoid a beneficiary designation even where a spouse has neglected to remove their now ex-spouse.

However, some designations can be revised prior to a divorce, but Federal law does not allow the changing of a beneficiary designation on some financial plans without written spousal consent, which is difficult to get when something like a 401(k) is in dispute. This spousal consent rule can create a small hurdle; most beneficiary designations can be changed and should be as soon as possible after a divorce.

An experienced Florida Family Law Attorney should be sure to ask you about beneficiary designations before finalizing a divorce. Be sure to ask the attorney working on your divorce if you are unsure about certain designations. If you are not currently working with an attorney, the most advisable practice is to secure an experienced Jacksonville Family Law Attorney as soon as possible.