Getting a divorce in Virginia? Don't forget to change your beneficiary
Overlooking even the smallest detail during a Virginia divorce can have far-reaching consequences if not rectified promptly, which was recently illustrated in a Virginia case heard by the U.S. Supreme Court.
May 14, 2013
Going through a divorce can be an especially trying and emotional time for both spouses. Sadly, in some instances divorcing couples are so distraught, or in a hurry to end the difficult process, that they forget to tie up all the loose ends.Unfortunately, overlooking even the smallest of these details during a Virginia divorce can have far-reaching consequences if not rectified promptly - which was recently illustrated in a Virginia case heard by the U.S. Supreme Court.
Is a Virginia widow or ex-wife entitled to federal life insurance benefits?
The recent Supreme Court case stems from an incident in 1996 in which a federal employee named his then-wife as the beneficiary of his federally-governed group life insurance plan.
Two years later, the couple divorced and the man subsequently remarried a different woman in 2002. However, the man failed to amend his life insurance policy to reflect the new marriage - meaning his ex-wife was still listed as his beneficiary of this particular policy. As a result, when the man passed away in 2008 his ex-wife received the substantial life insurance benefits, which totaled over $124,000.
Interestingly, under Virginia statutory law an ex-spouse is generally revoked as a life insurance beneficiary upon the entry of a final divorce decree - which would usually indicate that if the insured spouse subsequently gets remarried and then dies, the widow or widower would be entitled to the life insurance proceeds, and not the named ex-spouse beneficiary.
However, in the recent case before the Supreme Court, the insurance policy itself is governed by federal law; specifically, the Federal Employees' Group Life Insurance Act. Consequently, the Supreme Court must decide if they should apply federal law - which may dictate that the money should go to the ex-wife - or Virginia law. Put another way, does federal law trump Virginia state law?
Assistance available when dealing with divorce
This particular case demonstrates the importance of ensuring all potential issues are addressed during, and immediately following, a Virginia divorce - no matter how small - or run the risk that these tiny issues may turn into very big problems.
Accordingly, if you are currently contemplating divorce, it is often a good idea to speak with an experienced divorce attorney. A skilled divorce attorney can not only assist in filing for divorce, but also help avoid the little issues that can spiral out of control and lead to much larger disputes.
Article provided by Cravens & Noll PC
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