If I divorce and my ex is still the beneficiary, do they receive the life insurance payout?

Question

José Manuel Alburquerque · Accepted Answer

It depends on how they were designated. If the policy says “my spouse”, “my wife” or “my husband”, without a name, whoever is your spouse on the day you die is paid, so your ex is not. If the policy names your ex by full name, the most likely outcome is that they remain the beneficiary until you change it, although this is debatable where “my wife” or “my husband” was added next to the name. To avoid any doubt, change the beneficiary by writing to the insurer after the separation, unless you undertook in the “convenio regulador”, the court-approved separation agreement, to keep them. If the spouse was named in general terms The person paid is whoever is your spouse when you die. If you have remarried, that is your new spouse. Many policies refer to the “spouse not legally separated”. In that case, legal separation alone is enough for your ex to stop being the beneficiary. Until there is a divorce, your spouse remains your spouse even if you are separated. If the separation is only de facto, or the policy does not refer to the spouse “not legally separated”, they could claim the sum insured. In 2005 the “Tribunal Supremo”, Spain's Supreme Court, rejected the claim of a legally separated wife, but it is best not to count on that. If you divorced and have not remarried, nobody is paid under that designation. The order laid down in the policy applies or, if there is none, the money goes into your estate. If your ex was designated by name In principle, the designation of a specific person stands until it is changed, even if you are no longer married. If “my wife” or “my husband” was added next to the name, there may be a dispute as to whether the designation depended on the marriage. It is better not to leave it to a judge's interpretation. In Catalonia, provisions made in a will in favour of the spouse cease to have effect if the couple later separate, even if only de facto, or divorce, or if a claim for separation or divorce is pending at the time of death. This is not the case if they are reconciled or if it is clear from the will that the testator would have wanted it anyway. The same applies to stable partners (“pareja estable”, the Catalan stable partnership) who separate. If you named your ex as beneficiary in your will, there are arguments for applying that rule, although the courts are not known to have ruled on it. If the designation is in the policy, in principle it is not affected. What to do Review all your life and personal accident policies after the separation, including those linked to the mortgage and those provided through your employer. Change the beneficiary by writing to the insurer and keep the proof. Review your will as well. Check the separation agreement or the judgment first. Sometimes it is agreed to keep the ex or the children as beneficiaries to secure payment of maintenance. In that case, changing the beneficiary would be a breach of the agreement.