In most cases, a life insurance policy remains in effect after a divorce, but the ex-spouse is no longer the beneficiary. The policy owner can change the beneficiary to a new person, such as a child or a new spouse.

Divorcing couples have several options regarding their life insurance policies. They can keep the policy as is, cancel the policy and divide the cash value, or transfer the policy to one of the spouses.

The court may order one spouse to maintain life insurance for the benefit of the other spouse, order the division of the cash value of a life insurance policy, or order the transfer of a life insurance policy from one spouse to the other.

When making decisions about life insurance during and after divorce, it is important to consider the financial needs of the children, the financial needs of the ex-spouse, and the financial needs of the policy owner.

The best way to ensure that your life insurance policy will be handled according to your wishes after a divorce is to talk to your lawyer about your options, review your life insurance policy and make any necessary changes, and make sure your ex-spouse is aware of your wishes.