Legal Question in Family Law in Texas
Divorce and Life Insurance in Texas
My husband and I are recently divorced--extremely amicable. He died 40 days after our divorce. I am listed as the sole beneficiary on his life insurance policy and we have a 6 year old. Both of our intent was that the life ins. would pay for his funeral if anything happened and the rest go to take care of our daughter--my life ins was the same way. Three adult children who have had no relationship with us (no communication either) for YEARS but now have legal rights to his benefits due to state law. This is wrong and he would flip if he knew this. Is there any type of ''clear intent'' if the children raise this issue? There are many many family and friends who know of his estrangement with the other kids and his dedication to his 6 year old. I am very bewildered by this.
2 Answers from Attorneys
Re: Divorce and Life Insurance in Texas
The problem is that, insurance policies are non-probate assets and the courts do not involved themselves with them. If you are listed as the sole beneficiary, then there is nothing that they can do
Re: Divorce and Life Insurance in Texas
There is a Texas statute that says a former spouse is removed as a beneficiary of a life insurance policy immediately upon the divorce. If there were contingent beneficiaries named by your ex-husband, they would automatically become the primary beneficiaries. However, if the Decree of Divorce provided that the policy would be payable to you or for the benefit of the child, that may save it for you.
Under federal law, a spouse is a mandatory beneficiary under all retirement plans covered by ERISA (401K plans, etc.). If you were named as the beneficiary of a retirement program, you may have assets that would compensate for the possible loss of the insurance coverage.
I suggest you hire a lawyer to assist you and do so promptly before the proceeds of the policy are distributed.
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