Texas Family Code § 9.301 automatically revokes an ex-spouse's life insurance beneficiary designation once a divorce decree is rendered, unless three narrow exceptions apply. Whole-life cash value funded with community income is divided under the "just and right" standard of § 7.001, while term policies rarely hold community value unless a payout occurs before the divorce finalizes.
Life insurance sits at the intersection of two Texas divorce concerns: dividing an asset that may hold cash value, and protecting future support obligations after a spouse dies. Because Texas is one of nine community property states, most policies purchased during marriage — and the cash value inside them — belong to both spouses regardless of whose name is on the contract. This guide explains how courts classify and divide life insurance, how the automatic revocation statute works, when a judge can order coverage to secure child support, and the exact steps to update your policy after a decree. Every rule below is tied to a specific Texas statute so you can verify it independently.
Key Facts: Life Insurance and Divorce in Texas
| Factor | Texas Rule (2026) |
|---|---|
| Filing Fee | $250-$401 depending on county (Harris $350/$365; Dallas $350/$401). As of March 2026. Verify with your local clerk. |
| Waiting Period | 60 days after the Original Petition is filed (Tex. Fam. Code § 6.702) |
| Residency Requirement | 6 months in Texas + 90 days in the filing county (Tex. Fam. Code § 6.301) |
| Grounds | No-fault (insupportability) or fault-based (Tex. Fam. Code § 6.001) |
| Property Division Type | Community property, divided "just and right" (Tex. Fam. Code § 7.001) |
| Beneficiary Revocation | Automatic on divorce (Tex. Fam. Code § 9.301) |
Is Life Insurance Community Property in Texas?
Life insurance purchased during marriage is presumptively community property in Texas under Tex. Fam. Code § 3.002, meaning both spouses share ownership regardless of whose name appears on the policy. The cash value of a whole-life or universal-life policy funded with community income is part of the divisible estate, while a term policy with no cash value rarely contributes to community assets unless a death benefit pays out before the divorce is final.
Texas divides marital property into two estates. Community property includes nearly all assets and debts acquired during the marriage, defined under Tex. Fam. Code § 3.002. Separate property — assets owned before marriage, gifts, and inheritances — is governed by Tex. Fam. Code § 3.001 and is not divided at divorce. A life insurance policy bought before the marriage is generally separate property, but if community income paid the premiums, the community estate may claim reimbursement for those contributions. This distinction matters most for cash value life insurance, because the savings component grows over time and can represent thousands of dollars that must be classified and divided when the marriage ends.
Term Life vs. Whole Life in a Texas Divorce
Texas courts treat term and permanent policies differently because only one type accumulates value. Term life insurance provides pure death-benefit coverage for a set period and holds no cash value, so it typically has no divisible worth during divorce unless the insured dies before the decree. Whole-life and universal-life policies build cash value through a savings feature, and that accumulated value is community property subject to division if community funds paid the premiums.
| Policy Type | Cash Value | Divisible at Divorce? |
|---|---|---|
| Term Life | None | Usually no — only a pre-decree death benefit is community |
| Whole Life | Accumulates | Yes — cash value funded by community income is divided |
| Universal Life | Accumulates | Yes — cash value is a community asset |
| Pre-marriage policy | Varies | Separate property; community may seek premium reimbursement |
Because whole-life cash value can reach five figures, both spouses must report every policy on the Sworn Inventory and Appraisement, listing the cash value and classifying each as community or separate. Failing to disclose a policy can expose a spouse to a disproportionate division or a reopened judgment.
How Are Life Insurance Policies Divided in a Texas Divorce?
Texas courts divide life insurance under the "just and right" standard of Tex. Fam. Code § 7.001, which does not require an exact 50/50 split. A judge must specifically divide or award each spouse's rights in an insurance policy under Tex. Fam. Code § 7.004, and for cash-value policies the court may award the policy to one spouse and offset the other with assets of comparable value, or order the policy surrendered and the cash divided.
The governing rule is that a Texas court "shall order a division of the estate of the parties in a manner that the court deems just and right," per Tex. Fam. Code § 7.001. While many divisions approximate equal, judges may award a larger share based on factors such as earning capacity, fault in the breakup, and the needs of any children. For life insurance policy division specifically, Tex. Fam. Code § 7.004 requires the decree to address insurance rights head-on rather than leaving them ambiguous. Practical outcomes include one spouse keeping the policy and buying out the other's share of the cash value, splitting the surrendered cash value directly, or converting a whole-life policy to term to reduce future premium costs. When commingled funds paid the premiums, the court resolves reimbursement claims before dividing the remaining value.
What Happens to Cash Value Life Insurance
Cash value life insurance divorce cases turn on how much of the savings component was funded with community money. A whole-life policy's accumulated cash value is community property if community income paid the premiums, and the court divides that value like any other marital asset. If the policy is separate property but community funds paid premiums, the community estate can assert a reimbursement claim for the amounts contributed during the marriage.
Courts commonly handle cash value in one of three ways. First, the policy stays with the insured spouse, who compensates the other spouse for half the community cash value through an offsetting asset such as retirement funds or home equity. Second, the parties surrender the policy and split the cash value proceeds, though surrender charges and tax consequences can reduce the net amount. Third, the decree may leave the policy intact while awarding the non-insured spouse a fixed dollar interest. Because Tex. Fam. Code § 7.005 preserves a former spouse's ownership interest in an undivided life insurance policy, failing to specifically address a policy does not automatically extinguish rights — it can leave a lingering claim that surfaces years later.
Does Divorce Automatically Remove My Ex-Spouse as Beneficiary in Texas?
Yes. Under Tex. Fam. Code § 9.301, a divorce decree automatically revokes a designation naming your former spouse as the beneficiary of a life insurance policy in force at the time the decree is rendered. The revoked proceeds pass to the named alternate beneficiary, or if none exists, to the insured's estate — unless one of three statutory exceptions applies.
This is one of the most misunderstood rules in Texas divorce. Many people assume they must manually change their beneficiary, and while that step is strongly recommended, the statute already strips an ex-spouse of the designation by operation of law. Under Tex. Fam. Code § 9.301, the former-spouse designation is "not effective" after the decree. There are three exceptions where the ex-spouse still collects: (1) the divorce decree itself names the former spouse as beneficiary; (2) the insured re-designates the former spouse as beneficiary after the decree is rendered; or (3) the former spouse is designated to receive the proceeds in trust for, or on behalf of, a child or dependent of either former spouse. If the designation is revoked and no alternate is named, the proceeds go to the insured's estate.
The Critical ERISA Exception
The automatic revocation statute does not apply to employer-sponsored group life insurance governed by federal law. When a policy is part of an ERISA-regulated employee benefit plan, federal law requires the plan administrator to pay benefits according to the plan documents on file, which means an outdated designation naming your ex-spouse can still control. The U.S. Supreme Court confirmed this preemption principle in Egelhoff v. Egelhoff (2001).
This is the single most dangerous gap for divorced Texans. If your life insurance comes through your job, Tex. Fam. Code § 9.301 will not save you — the plan pays whoever is listed in its records, even a former spouse. A 2024 Fifth Circuit decision (Transamerica v. Moore) confirmed that § 9.301 applies to non-ERISA policies whether acquired before or during the marriage, hinging on marital status at the time of the decree. But for ERISA plans, you must submit a new beneficiary form directly to your employer's plan administrator. Do not rely on the divorce decree or the state statute to redirect employer-based coverage. Reviewing every policy — individual and group — after the decree is the only reliable protection.
Can a Texas Court Order Life Insurance to Secure Child Support?
Yes. Under Tex. Fam. Code § 154.016, a Texas court may order a child support obligor to obtain and maintain a life insurance policy, including decreasing term coverage, that funds a trust or annuity payable to the child if the paying parent dies. Because child support does not terminate on the obligee's death under Tex. Fam. Code § 154.013, courts use insurance to guarantee the obligation survives the obligor.
The statute exists because a child support obligation continues even after a parent dies. Tex. Fam. Code § 154.016, titled "Provision of Support in Event of Death of Parent," was added effective September 1, 2007, and amended in 2018. When setting the required coverage amount, the court considers the present value of all monthly child support payments owed from the order date until the child turns 18, plus health and dental insurance premiums, and additional amounts for a disabled child under Tex. Fam. Code § 154.306. Courts are more likely to order life insurance for child support when the paying parent has few assets or an estate unlikely to cover the obligation. The court can also require the obligor to provide proof of compliance, and allowing the policy to lapse becomes an enforceable violation of the support order.
Life Insurance and Spousal Maintenance
Life insurance can also secure spousal maintenance in Texas, though the mechanism differs from child support. Court-ordered spousal maintenance under Tex. Fam. Code Chapter 8 automatically terminates on the death of either spouse, so a life insurance requirement is often negotiated to protect the receiving spouse against the payer's death during the maintenance term.
Texas distinguishes between two forms of post-divorce support. Court-ordered spousal maintenance is available only in limited situations, such as a marriage lasting 10 or more years where the requesting spouse cannot meet minimum reasonable needs. Contractual alimony, by contrast, arises only by agreement between the spouses and is incorporated into the Final Decree of Divorce. In either scenario, the parties frequently agree that the paying spouse must maintain a life insurance policy naming the recipient as beneficiary for the duration of the support obligation. If the decree contains such a requirement, letting the policy lapse is an enforceable breach, giving the recipient grounds to seek court intervention.
Steps to Update Life Insurance After a Texas Divorce
After your Texas divorce decree is rendered, you should update every life insurance policy within 30 days, because relying on automatic revocation under Tex. Fam. Code § 9.301 leaves dangerous gaps — especially for ERISA employer plans, which the statute does not reach. Confirm new beneficiary designations in writing with each insurer and retain proof of the change.
The following checklist covers the essential post-decree actions:
- Request beneficiary change forms from every individual insurer and name your new intended beneficiary, alternate, and any trust.
- Submit new designations directly to your employer's ERISA plan administrator — the state revocation statute does not apply to job-based group coverage.
- Verify any court-ordered coverage required to secure child support under Tex. Fam. Code § 154.016 is in force and provide proof if ordered.
- Confirm you meet any decree obligation to maintain a policy for spousal maintenance before allowing older coverage to lapse.
- Keep written confirmation from each insurer, because the failure to update an endorsement does not relieve the insurer under Tex. Fam. Code § 7.005 but proof protects your intended beneficiary.
- Review policies again after remarriage or the birth of additional children to keep designations current.
Procrastination is the biggest risk. Beneficiary disputes after death often force a lawsuit called an interpleader, where the insurer deposits the funds with the court and the surviving parties litigate who is entitled to them. Updating promptly avoids this cost and delay.