Married couples often own financial assets that automatically transfer to the other spouse when one of them dies. These commonly include:
- Life insurance policies naming the spouse as beneficiary
- Joint bank or investment accounts with a right of survivorship
- Retirement accounts or pensions with designated beneficiary clauses
- Accounts or contracts with “payable on death” or “transfer on death” designations
In many cases, divorcing spouses update these beneficiary designations or ownership rights as part of the divorce process. But some people don’t — either because they forget, assume the divorce automatically fixes it, or simply never revisit old accounts.
In Massachusetts, whether the ex-spouse still receives the asset depends on a specific law: G.L. c. 190B, § 2-804.
The Default Rule: The Ex-Spouse Is Treated as if They Died First
Under this statute, if an asset was set up to pass automatically to a spouse at death, the designation is revoked once the divorce becomes final — unless there is a written agreement or court order saying otherwise.
In other words, the law treats the former spouse as if they had predeceased the account owner. The result:
✅ The asset does not go to the ex-spouse
✅ The asset instead becomes part of the deceased person’s estate
✅ It will pass according to the will, trust, or intestacy laws
This rule applies to assets that existed before the divorce. Assets acquired after the divorce are not affected.
When Can the Ex-Spouse Still Receive the Asset?
The law allows a former spouse to stay as a beneficiary only if there is clear written intent. Acceptable documents include:
- A separation agreement
- A judgment of divorce
- A written contract between the former spouses
- A will executed after the divorce
- Any signed writing that confirms the intent to keep the ex-spouse as beneficiary
Verbal promises or assumptions are not enough.
Why This Matters
Failing to update beneficiary designations can cause:
- Unintended estate disputes among heirs
- Probate delays, because the asset becomes part of the estate instead of transferring automatically
- Loss of tax or financial advantages associated with direct beneficiary transfers
Many people think “the divorce already handled that,” but unless the documents are updated, the law may step in — and not necessarily in the way they expect.
Bottom Line
If you are divorcing — or already divorced — review every life insurance policy, retirement plan, bank account, and investment account. Updating your estate plan and beneficiary forms may be just as important as dividing marital property during the divorce.
If you need help clarifying what happens to your financial accounts after a divorce, or want to ensure your intent is legally enforceable, speak with an experienced Massachusetts family law attorney.
