Today’s Dear FineMark involves Suspicious beneficiary designations. Divorce decrees. And a $500,000 life insurance policy. Here is the question…
“I’ve been married 16 years and am planning to file for divorce. Before my husband and married, I bought a home on my own, and throughout our marriage, I have been the only person working-and I cover most expenses. Now my husband wants half the value of the home, even though he never contributed financially. Will I really have to split it 50/50?”
Signed, The Only One Who Worked
This is a really thoughtful—and unfortunately very common—question. You’re the named beneficiary on your husband’s life insurance policy. But according to his divorce decree, that policy is supposed to benefit his children from his previous marriage.
So, what happens if he passes away and you receive the payout?
First: the life insurance company pays the person listed as the beneficiary on the policy. In this case, that’s you. But the story might not end there.
In some states, a divorce decree can override a policy. In others, it does not. It all depends on how the court order is written and where you live.
If your husband was required by the court to maintain that policy for the benefit of his children and named you instead, it could open the door for a legal dispute—even if the insurance company pays you first.
That’s why we always say: documentation and alignment matter. A divorce decree is a legal obligation. If it says he must maintain a policy for his children, it’s smart—and fair—for him to make sure the policy actually reflects that.
It’s not about disinheriting anyone—it’s about honoring a legal commitment and avoiding family conflict down the line. I would suggest you talk with your husband and review the policy together. Seek legal guidance and update the beneficiary info if needed.
It’s never easy blending families or finances, but being proactive shows care and integrity—for your spouse, his children, and your future.
