Life Insurance Claim by a Former Spouse

Life insurance is often a critical component of financial planning, offering peace of mind and security for the future. However, what happens to the benefits of a life insurance policy when a marriage ends? In Florida, the situation can become particularly complex, especially when a former spouse is still listed as the beneficiary. This article explores the intricacies of life insurance claims by a former spouse under Florida law, from both the perspectives of the former spouse and the family making a claim where a former spouse is still listed. Our Florida life insurance lawyers have represented both families and former spouses in life insurance disputes and life insurance lawsuits.

For the Former Spouse: Understanding Your Rights

If you are a former spouse who has been named as a beneficiary on a life insurance policy, it is often crucial to understand how Florida law affects your situation. Traditionally, being named as a beneficiary on a life insurance policy grants you the right to receive the policy’s benefits upon the policyholder’s death. However, in Florida, this is subject to change following a divorce.

Under Florida Statutes, certain automatic legal provisions come into play post-divorce that can alter the beneficiary designations on life insurance policies. Specifically, if the policyholder does not update their life insurance policy post-divorce, the ex-spouse listed as a beneficiary may automatically be disqualified from receiving the benefits, assuming the policyholder intended for this change post-divorce but did not formally amend the policy.

However, there are exceptions. If there are specific clauses in the divorce decree stating that the life insurance policy is to maintain the ex-spouse as a beneficiary or if there are other contractual obligations, then the ex-spouse may still be entitled to the proceeds. Under certain ERISA policies or FEGLI policies, Federal law may preempt State law. Understanding the specifics of the divorce agreement and any related insurance documentation is essential.

Action Steps for the Former Spouse:

Review the divorce decree and any related agreements to understand your entitlement.
Consult with a Florida life insurance lawyer to ascertain your rights under the current law.
If necessary, communicate with the insurance company to understand their policies regarding changes in beneficiary designations post-divorce.

For the Family: Protecting the Deceased’s Wishes

From the family’s perspective, discovering that a former spouse is still listed as the beneficiary on a life insurance policy can be a source of significant concern and confusion. Under Florida law, the default assumption post-divorce is that the insured intended to remove the ex-spouse as a beneficiary, unless there is clear evidence to the contrary.

If you are a family member who believes that the deceased would not have wanted the ex-spouse to remain as the beneficiary, there are several steps you can take:

Review Legal Documents: Examine the divorce decree and any amendments to the life insurance policy that may have been made after the divorce. This can provide clarity on the deceased’s intentions.
Legal Consultation: Seek legal advice to understand the options available and the process for contesting the beneficiary designation under Florida law.
Probate and Estate Considerations: The life insurance proceeds may form part of the deceased’s estate if the ex-spouse is disqualified as a beneficiary under Florida law. This could affect the distribution of assets according to the will or state succession laws.

Action Steps for the Family:

Collect all relevant documentation, including the life insurance policy, divorce decree, and any other pertinent legal agreements.
Consult with a probate attorney to discuss your case and understand the legal avenues available.
Prepare for potential legal proceedings to contest the beneficiary designation if necessary.