Divorce Life Insurance


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Key Takeaways

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Joint life insurance policies may need to be split, surrendered or transferred. And cash value could be treated as marital property.

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Even if the policy is in your name, you may still have to keep your ex as the beneficiary, especially if required by a court order.

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Don’t make changes to your beneficiary or policy ownership until your divorce is finalized and your attorney confirms you're legally allowed to.

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What Happens to Life Insurance After Divorce

Divorce doesn’t automatically change your life insurance policy, but it can affect who receives the death benefit, whether you're required to keep the policy, and how any cash value is treated. What happens next depends on the type of policy, who owns it, and whether your divorce agreement includes life insurance as part of child or spousal support.

Below, we break down how individual and joint life insurance policies are affected after divorce.

Individual Life Insurance After Divorce

If you own an individual policy (term or permanent), you retain control over it, unless your divorce decree says otherwise.

  • You can change the beneficiary unless you're legally obligated to keep your ex-spouse listed (common in support agreements).
  • You can cancel or modify the policy if there are no court-ordered requirements tied to it.
  • Permanent policies with cash value (like whole or universal life) may be considered marital property. Courts may divide the cash value or assign it to one spouse.
  • You remain responsible for premiums unless the divorce agreement says otherwise. Missed payments can cause the policy to lapse, even if it's court-ordered.
  • You must seek legal guidance. Even if the policy is in your name, a judge may restrict what changes you’re allowed to make.

Joint Life Insurance Policy After Divorce

Joint policies are more complex. These are often structured as "first-to-die" or "second-to-die" plans and typically cover both spouses under one contract.

  • Some insurers allow you to split a joint policy into two individual policies after divorce, though this isn't always possible.
  • One spouse may take over the policy and become the sole owner, assuming full responsibility for premiums and beneficiary designations.
  • The policy may be surrendered for cash value, if both parties agree or the court orders it. The payout can then be divided as part of the divorce settlement.
  • You can keep the policy active, especially if it benefits children. This requires a clear agreement on who pays premiums and how the death benefit is structured.
  • You must seek legal guidance. Joint policies often have complicated ownership, beneficiary and tax implications post-divorce.

Understanding these details helps you make informed decisions during a transitional life phase. Your life insurance after divorce should align with your changing circumstances.

Life Insurance on Ex-Spouse: Can I Remove Them?

You can remove your ex-spouse as a life insurance beneficiary unless your divorce agreement legally requires you to keep them listed. Courts often include these requirements to ensure financial support for minor children in case of a parent's death.

Whether removal is allowed also depends on the type of beneficiary. If your ex is a revocable beneficiary, you can make changes at any time without their consent. If they're listed as an irrevocable beneficiary, the insurer will require written permission before making any updates.

Some people name a child, parent or a life insurance trust as an irrevocable beneficiary, often to protect long-term financial goals. If your ex-spouse was designated this way, you'll need their signed consent to make any changes.

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MONEYGEEK EXPERT TIP

Even if the life insurance policy is in your name, you must comply with all court-ordered terms in your divorce decree, including keeping your ex-spouse as a beneficiary when required.

Life Insurance After Divorce: Important Things to Do

After a divorce, update your life insurance policy because this won't happen automatically. Depending on the divorce decree, you may need to remove your ex-spouse as a beneficiary. Here are steps and changes you may need to consider:

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    Consult your divorce attorney

    Before changing your life insurance policy, consult your divorce attorney about beneficiary rules. They can confirm if you can remove your spouse as a beneficiary or make changes without violating the divorce settlement. Timing and court order compliance matter.

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    Take inventory of all current insurance policies

    List all life insurance policies you and your spouse have, including the type, coverage amount, any riders, cash value and the insurer. This helps with accurate asset accounting in divorce proceedings, especially if cash value is involved. Some states require an Affidavit of Insurance Coverage in the divorce paperwork.

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    Clarify who pays for the policy

    The divorce agreement should specify who pays and maintains life insurance, particularly if the ex-spouse remains the primary beneficiary. Beneficiaries could lose the death benefit if the policy lapses, leaving the surviving spouse without coverage.

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    Update your coverage

    A divorce can change the amount of life insurance you need. Review your policy during and after the divorce to ensure adequate coverage.

    If your ex wants to cover college tuition and you want to ensure car payments are covered, you may need to adjust your policy based on the divorce settlement terms.

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    Consider cashing out

    If you have permanent life insurance with cash value, decide whether to keep the policy or cash it out. If you keep the policy, you may need to pay your former spouse their portion of the value. Borrowing against the value or withdrawing from the policy will reduce the death benefit unless replaced with additional funds.

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    Consider changing to a term life policy

    Term life insurance is much cheaper than permanent life insurance. Cashing out a permanent life insurance policy and buying term life insurance after divorce may be a better financial decision than maintaining the permanent policy.

    You can use the cash surrender value to pay your ex-spouse their portion, invest the money, save it in an account or use it another way.

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    Remove your ex-spouse as a beneficiary

    An ex-spouse can collect life insurance proceeds if they remain the beneficiary. If the policy beneficiary is revocable, you can remove them without consent. If the beneficiary is irrevocable, their agreement is required. If no children are involved, update your beneficiary once the divorce is settled.

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    Consider maintaining coverage for children

    Keeping life insurance on an ex-spouse may be important if you have children together. Both parents should ideally maintain the policy with the ex-spouse as the beneficiary to ensure financial support for their minor children if one parent passes away.

Understanding how to manage divorce and life insurance helps ensure that your financial strategies adapt to your new circumstances.

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DO LIFE INSURANCE COMPANIES NEED TO KNOW ABOUT YOUR DIVORCE?

Yes, notify your life insurance company after a divorce, especially if your policy is affected by a court order. Your provider needs up-to-date information to process any changes to ownership, beneficiaries or coverage terms. Reviewing and updating your policy ensures the coverage reflects your current legal obligations and financial intentions.

Life Insurance Divorce: How to Find the Right Policy

Reassess your life insurance needs to ensure your coverage matches your new situation. Here's a step-by-step guide to help you choose the right life insurance after a divorce, protecting your financial interests and those of your loved ones.

  1. 1

    Assess your financial obligations

    Consider your financial responsibilities, such as alimony, child support, debts and other obligations that would affect your loved ones if you were no longer around.

  2. 2

    Determine the coverage amount

    Calculate the amount of coverage you'll need based on your financial assessment. This should cover your financial obligations and provide a safety net for your dependents.

  3. 3

    Choose the right policy type

    Decide between term, whole or universal life insurance based on your needs. Term life is often sufficient and more affordable, while whole or universal life offers additional benefits like cash value. Other types of life insurance cater to different needs. Your choice should align with your post-divorce needs and future goals.

  4. 4

    Shop around for quotes

    Compare rates from different providers to ensure you get the best deal. Online comparison tools can help you find suitable life insurance after divorce.

  5. 5

    Review the policy terms

    Read the fine print carefully. Before committing to a policy, ensure you understand the terms, including any exclusions or limitations.

  6. 6

    Consult professionals

    Before finalizing your decision, you may consult financial advisors and legal professionals to ensure the policy meets your needs and complies with any court orders or legal obligations.

  7. 7

    Make the purchase

    Once you're confident in your choice, make the purchase. Keep all relevant documentation safe and inform your beneficiaries about the policy.

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CAN YOU BUY LIFE INSURANCE FOR AN EX-SPOUSE?

You can buy life insurance for an ex-spouse, but you’ll usually need their consent due to insurable interest rules. This is common when life insurance is used to secure alimony or child support. In most cases, the ex-spouse must agree to the policy and may need to be the policy owner.

Life Insurance and Divorce: Important Things to Know

Divorce can impact nearly every part of your life insurance policy, from ownership and beneficiary rules to how much coverage you're required to keep. In some cases, courts may order you to maintain a policy for child or spousal support. Understanding these legal and financial implications can help you avoid mistakes and stay compliant with your divorce terms.

Life Insurance and Divorce Settlements

Life insurance can play an important role in divorce settlements, especially when alimony, child support or high-value policies are involved. In many cases, a court may require one or both spouses to maintain coverage, purchase a new policy or divide the cash value of an existing one.

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    You may be required to keep coverage

    If your divorce agreement includes child support or alimony, the court may require you to keep an existing life insurance policy and name your ex-spouse as the beneficiary. This ensures that support payments continue if the paying spouse dies before the obligation ends.

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    If you aren’t covered, you may be required to get coverage

    Courts can also order you to buy life insurance after divorce to secure support payments. The order may specify the beneficiary and coverage amount, but you're typically allowed to choose the policy type as long as it meets the minimum financial requirement.

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    Cash value is divided between spouses

    If you have a permanent life insurance policy with cash value, that value may be treated as a marital asset. The court or both parties will determine how the value is divided, either by cashing out, reallocating ownership or offsetting it with other assets in the settlement.

Divorce settlements often turn life insurance into a legal obligation, not just a financial decision. Make sure you understand the court's requirements and how your policy fits into the overall agreement because this can directly impact your finances and your family's security.

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MONEYGEEK DICTIONARY

An asset is anything of economic value that someone owns and can convert to cash, such as real estate, bank accounts, investments or the cash value of a life insurance policy. A marital asset refers to property acquired during the marriage, including homes, vehicles, retirement accounts and life insurance cash value. Property owned before marriage is typically considered a premarital asset, though any increase in its value during the marriage may still be subject to division in a divorce.

Divorce and Life Insurance: Common Problems To Look Out For

Divorce can complicate life insurance in ways that are easy to overlook but costly to ignore. Here are some of the most common problems that arise and why you should address them early.

Potential Issue
Description

Beneficiary Disputes

Conflicts often arise over who should be listed as the beneficiary, especially when children or court orders are involved. Changing a beneficiary requires care to ensure it aligns with legal obligations and doesn’t invalidate the policy.

Policy Ownership Conflicts

For joint or permanent life policies, deciding who keeps the policy (or how to divide its value) can lead to disputes. Ownership determines who controls the policy and receives any cash value.

Missed Premium Payments

Divorce distractions can lead to missed payments and policy lapses. This is especially risky if the policy is required by a divorce decree or tied to support obligations.

Overlooking Cash Value

The cash value in whole or universal life insurance is often underestimated or forgotten during asset division, even though the value is considered a marital asset in many divorces.

Failure to Update the Policy

Many people forget to update their beneficiary or ownership details after divorce, risking an unintended payout to an ex-spouse.

Tax Implications

Cashing out a policy or dividing its value may trigger taxes, especially if the payout exceeds premiums paid. A tax advisor can help you avoid unexpected liabilities.

Legal Costs

Unresolved life insurance issues can escalate into legal disputes, increasing both the financial and emotional toll of the divorce.

Staying ahead of these common pitfalls can protect your financial future and ensure your life insurance supports the people who need it most during and after divorce.

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MONEYGEEK EXPERT TIP

Avoid making life insurance changes, like switching beneficiaries or canceling coverage, until your divorce is finalized. Premature updates can create legal and financial issues, especially when children are involved. Consult your attorney first and maintain the status quo until all terms are legally settled.

Court-Ordered Life Insurance Divorce: How It Works

Courts can require one or both spouses to carry life insurance as part of a divorce settlement, usually to secure alimony or child support. If ordered, you're responsible for securing coverage by a court-imposed deadline and proving compliance.

  1. 1

    Start early

    Life insurance applications can take several weeks to process — or longer if medical exams or additional documentation are needed. Begin at least six months ahead of the deadline to avoid delays.

  2. 2

    Clarify the policy terms

    Work with your attorney and ex-spouse to finalize key details: policy type, coverage amount, who owns the policy, and who pays the premiums. In some cases, you may keep ownership but name your ex-spouse as the beneficiary. In others, the court may require your ex to be both the owner and beneficiary.

  3. 3

    Submit proof to the court

    You’ll likely need to provide documentation, such as a signed application, payment confirmation, or policy copy, to verify compliance with the court order.

When Should You Have Life Insurance on an Ex-Spouse?

If you rely on your ex-spouse for financial support, consider keeping life insurance on them. Here are a few scenarios where keeping life insurance on a former spouse may make sense.

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    They consent

    To buy life insurance on an ex-spouse, you must have their consent as they're the insured. If they don’t consent, you can't purchase a policy on their life unless mandated by a settlement.

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    You rely on them for financial support

    If your ex-spouse must pay alimony or child support as part of the divorce agreement, you may want them to maintain life insurance with you as the beneficiary. If they die before the support payments end, the death benefit can cover the support you'd lose without it.

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    You have children

    If you and your ex-spouse have children together, keeping life insurance on each other with the other spouse as the beneficiary may be wise. The coverage would replace financial support if one of you passes away, help your children maintain their lifestyle and cover education expenses.

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MONEYGEEK EXPERT TIP

If you need life insurance during or after a divorce, a term life policy is often the most practical choice. It provides coverage for up to 30 years (typically enough to meet court-ordered obligations) and costs less than permanent life insurance. You can invest the savings elsewhere to build long-term security.

We reviewed the best term life insurance companies to help you compare rates, policies and providers.

Life Insurance Beneficiary Rules After Divorce

Divorce changes your financial obligations, and your life insurance should reflect that. Once your divorce is finalized, you may need to update your beneficiary designations or comply with court-ordered terms. Here's what to keep in mind:

  • Update your beneficiaries. If your ex-spouse is still listed and you're no longer required to keep them as a beneficiary, make the change as soon as possible to avoid unintended payouts.
  • Follow court orders. Some divorce agreements require you to keep your ex-spouse as a beneficiary, especially if the policy secures alimony or child support.
  • Get professional advice. Legal and financial advisors can help you interpret your divorce decree and ensure your beneficiary choices are valid under state law.

Keeping your policy up to date ensures your life insurance benefits go to the right people and helps you stay compliant with any legal obligations.

Life Insurance Policy After Divorce: How Much Do You Need?

Divorced parents usually need enough life insurance to cover child support and related costs until their children become financially independent. A quick way to estimate this is using your income and your youngest child's age.

Recommended Minimum Coverage = Annual Income × (18 - Age of Youngest Child)

For example, if you earn $65,000 annually and your youngest child is 3, you'd want coverage for 15 more years. That's $65,000 × 15 = $975,000 in life insurance, ideally through a 15-year term life policy. This approach ensures that, if you pass away before your child turns 18, the death benefit can replace your income and support your child through to adulthood.

If you want coverage beyond support obligations, consider adding other expenses like:

  • Your child's future college costs
  • A mortgage or co-signed debt
  • Extra financial protection for your ex-spouse or guardian

In that case, choose a larger coverage amount or a longer term life insurance policy to match your goals. You can also divide the death benefit among multiple people. If you don't want one person to receive the full payout, name multiple primary beneficiaries. Be sure to include a contingent beneficiary in case your primary can't accept the payout.

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Ensure you're getting the best rate for your life insurance. Compare quotes from the top insurance companies.

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Life Insurance During Divorce: Bottom Line

On this page, we explained how divorce can impact your life insurance, from court-ordered policies to cash value division and beneficiary changes. Whether you're required to maintain coverage for support or simply want to update your policy to reflect your new priorities, acting with clarity and care matters.

Life insurance decisions made during divorce can protect your family's future and prevent costly legal issues down the line. Review your policy, follow your divorce agreement and take control of what happens next.

What Happens to Life Insurance in Divorce: FAQ

Life insurance is an important consideration during a divorce. Answers to these common questions about divorce life insurance can help you decide what's best for your situation.

Are life insurance proceeds marital property?

What happens to life insurance in divorce?

Can you remove your ex-spouse from your life insurance policy?

Can you keep life insurance on your ex-spouse after a divorce?

What should you do about your life insurance policy after a divorce?

How much life insurance does a divorced parent need?

Can I get life insurance on my ex-husband without him knowing?

Can you still collect life insurance benefits on an ex-spouse?

Can an ex-wife be a beneficiary on a life insurance policy?

Can you change life insurance beneficiary during a divorce?

What would happen if a married couple owns a permanent policy that covers both of their lives and they get divorced?

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Divorce and Life Insurance Policies: Our Ratings Methodology

Why You Can Trust MoneyGeek? We evaluated life insurance companies using a combination of quote data, customer satisfaction ratings, financial strength indicators, and product offerings. We reviewed 1,488 quotes to determine the best insurers for a range of needs.

Data Recency

Coverage costs and company information were last updated in 2025.

How We Rated Life Insurance Companies

We developed a scoring system based on five core categories. Each company earned up to five points per category, which we used to calculate an overall MoneyGeek score out of 100. We focused on companies with broad national availability and online quoting capabilities.

Standard Weightings for Overall Best Life Insurance Companies

  • Affordability: 30%
  • Financial Stability: 25%
  • Buying Process: 20%
  • Customer Satisfaction: 15%
  • Product Diversity: 10%

Weightings for Best Whole Life Policies

  • Financial Stability: 35%
  • Customer Satisfaction: 25%
  • Buying Process: 20%
  • Product Diversity: 20%

Weightings for Best No-Exam Policies

  • Product Diversity: 35%
  • Financial Stability: 25%
  • Customer Satisfaction: 20%
  • Buying Process: 20%

Weightings for Best Cheap Life Insurance

  • Affordability: 50%
  • Financial Stability: 15%
  • Buying Process: 20%
  • Customer Satisfaction: 5%
  • Product Diversity: 10%

Scoring Inputs

Each company’s score includes the following:

  • Cost data from online quotes
  • Financial strength ratings from AM Best and years in business
  • Customer complaint data from the NAIC (2020–2022)
  • Buying process support, such as online tools and payment options
  • Variety of life insurance products offered

Customer Profile Used for Quotes

To obtain quotes, we used a consistent customer profile:

  • 40-year-old male
  • Nonsmoker
  • 5'11", 175 pounds
  • Excellent health

Premium estimates are based on this profile unless noted otherwise. To reflect different consumer needs, we also modified the profile by age, gender, tobacco use, health rating, and location. We collected quotes across various term lengths and coverage amounts.

How We Handled the Data

We analyzed trends across the data set and used those patterns to make reasonable projections, helping us extend insights beyond individual quotes.

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About Mandy Sleight


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Mandy Sleight is a licensed property, casualty, life and health insurance agent with 20 years of experience in the industry. She has worked for major insurance companies like State Farm and Nationwide, and most recently as the Operations Coordinator for a startup employee benefits company.

Sleight holds a business administration and management degree from the University of Baltimore and a master's in business administration from Southern New Hampshire University. She uses her vast knowledge of insurance and personal finance to create easy-to-understand and engaging content to help readers make smarter choices with their budgets and finances.


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