Texas law voids an ex-spouse designation automatically. It does not touch the policy most people actually have through work.
Texas law does something helpful after a divorce: it automatically voids a beneficiary designation naming your former spouse. Most people who know this assume they are covered. They are frequently wrong about the policy that matters most - because the statute does not reach the coverage you have through work.
Summarized from published sources for general education. I am not an attorney and statutes change - verify with counsel.
Texas Family Code Section 9.301 provides that once a divorce or annulment decree is rendered, a life insurance beneficiary designation in favor of the former spouse is not effective. There are three exceptions - the designation stands if:
For an individually owned policy, that is a genuinely useful protection. It means an outdated form does not override the intent of two people who are no longer married.
General overview of how these categories are commonly treated, not legal advice about your policies. Plan documents, the specific decree, and the facts of your case control the outcome. Confirm each one with your attorney.
General overview only, and I am a broker rather than an attorney - do not act on this section without confirming your own circumstances with a Texas attorney.
This comes up constantly and the common belief is only half right. The accurate answer depends entirely on what kind of account you are talking about:
General overview, not legal advice. Plan rules and county standing orders vary.
Section 9.301 says the proceeds go to the named alternative beneficiary. And if there is no named alternative beneficiary, they are payable to the estate of the insured.
That is a materially worse outcome than a direct payment. Money paid to an estate goes through probate, becomes reachable by creditors, and can take months rather than weeks - at the precise moment a family needs liquidity. Naming a contingent beneficiary is the easiest fix on this entire page, and most people have not done it. More on primary and contingent designations.
Texas decrees involving child support or spousal maintenance frequently require one spouse to maintain life insurance naming the other spouse or the children for a defined period. That obligation is enforceable, and letting the policy lapse can put you in violation of a court order.
It is also where requirements collide - a decree may require a designation that Section 9.301 would otherwise void, which is why decrees addressing this explicitly matter. If a required policy has lapsed, reinstating it is usually faster and cheaper than buying new, and it may resolve a compliance problem at the same time.
For an individually owned life insurance policy, generally yes. Texas Family Code Section 9.301 provides that when a divorce decree is rendered, a beneficiary designation in favor of the former spouse is not effective - unless the decree itself designates them, you re-designate them after the divorce, or they are named to receive the proceeds in trust for a child or dependent. The critical limitation is that this statute does not reach employer plans governed by federal ERISA law, which is where most people are actually exposed.
Because federal law overrides state law for those plans. The U.S. Supreme Court held in Egelhoff v. Egelhoff that ERISA preempts state statutes that automatically revoke a former spouse's beneficiary designation. Plans must be administered according to plan documents, which means the beneficiary form on file controls. Citing Texas Family Code Section 9.301 will not change the outcome for an ERISA-governed plan. If your ex-spouse is still named on your employer group life or 401(k), they may well receive the proceeds regardless of your divorce decree.
For an individually owned life insurance policy, generally no. You own the contract and can change the beneficiary. That is different from a 401(k) or pension governed by ERISA, where federal law does require written spousal consent to name someone other than your spouse. The distinction catches people out because they assume the retirement plan rule applies to everything. It does not - but that does not mean changing a life insurance beneficiary is free of consequences, because Texas community property law provides a separate remedy after the fact.
Potentially, yes. Texas is a community property state, and where community funds paid the premiums, a spouse may have a claim for what Texas courts call constructive fraud on the community. Texas appellate courts have found constructive fraud where a husband replaced his wife as beneficiary with a romantic partner, and in another case where he named his mother. Courts have declined to find it where the change benefited the couple's own child. The claim is fact-specific and decided case by case - which is exactly why this belongs with a family law attorney rather than a rule of thumb.
The proceeds go to the named alternative beneficiary. If you never named one, they are payable to your estate. That is a materially worse outcome for your family than a direct payment to a beneficiary - estate proceeds go through probate, become reachable by creditors, and can take months rather than weeks. Naming a contingent beneficiary is the single easiest fix on this entire list.
Often not. Many Texas counties have standing orders that take effect when a divorce is filed, and temporary orders or injunctions frequently prohibit changing beneficiary designations while the case is pending. Violating one can carry consequences in your case. If you need to make a change during a pending divorce, that goes through your attorney and potentially a court order - not through the insurance company's website.
Texas decrees involving child support or spousal maintenance commonly require one spouse to keep life insurance in force naming the other spouse or the children as beneficiary for a defined period. That obligation is enforceable, and letting the policy lapse can put you in violation of a court order. It is also a place where people get caught between requirements - the decree may require a designation that Section 9.301 would otherwise void, which is why decrees that address this explicitly matter.
Request a current beneficiary statement from every policy and plan you hold - individual life insurance, employer group life, 401(k), pension, IRA and annuities. Submit new designation forms to each one directly, because a decree does not update them automatically and does not update ERISA plans at all. Name a contingent beneficiary on every one. Then have your attorney confirm the designations are consistent with what your decree requires.
Dev Gaymes is a licensed insurance broker, not an attorney. This is general education about Texas law, not legal advice, and not advice about your situation. DG Life Group is an insurance brokerage and does not practice law. Statutes, case law and plan documents change and are applied to specific facts; whether Section 9.301 applies to a particular policy, whether an account is ERISA-governed, whether a community property claim exists, and what your decree requires are all questions for a licensed Texas attorney. County standing orders and temporary orders during a pending divorce vary and may prohibit changes described here. Nothing on this page creates an attorney-client relationship, constitutes a legal opinion, or should be relied on in place of counsel. DG Life Group makes no representation that any statute, case or plan rule described here is current, complete, or applicable to you, and disclaims responsibility for actions taken in reliance on it. If you are divorced, divorcing, or considering a beneficiary change, consult a licensed Texas family law or estate attorney before acting. This page is also not an offer of insurance, a quote, or a guarantee of coverage.