Respectfully Submitted by Cicely Nedd-Thomas
If a decree of Divorce or Annulment is rendered after an insured has designated the insured's spouse as a beneficiary under a life insurance policy in force at the time of the divorce or annulment, a provision in the policy in favor of the insured's former spouse is not effective unless:
1. The decree of divorce designates the insured's former spouse as the beneficiary;
2. The insured redesignates the former spouse as a beneficiary after the rendition of the decree or;
3. The former spouse is designated to receive the proceeds in trust on behalf of the children.
If the above criteria is not met the life insurance proceeds pass to the alternate beneficiary, if no alternative beneficiary was named then the proceeds pass to the estate of the insured.
If a decree of divorce or annulment is rendered after a spouse acting in the capacity of a participant annuitant or account holder has designated the other spouse as a beneficiary under an IRA, employee stock option plan or other form of savings, bonus, profit sharing or other plan of an employee or participant in force at the time of rendition, the designating provision in the plan in favor of the other former spouse is not effective unless the same criteria for naming a beneficiary for a life insurance policy is met.
