How Can I Challenge a Change in Life Insurance Beneficiary After Divorce and Separation in North Carolina?
Detailed Answer
After a divorce or legal separation, many policyholders assume their ex-spouse can no longer receive life insurance proceeds. North Carolina law provides clarity but also limits. Under N.C.G.S. § 58-10-5, a divorce generally revokes any designation naming a former spouse as beneficiary. If no valid alternate beneficiary exists, the insurer pays benefits according to the policy terms or the insured’s estate. However, an insurer will honor a post-divorce beneficiary change if the insured signed a new designation after final judgment.
If you believe someone changed the beneficiary form improperly—through fraud, undue influence or without the insured’s capacity—you can challenge that change in court. Gather the life insurance policy, original and amended beneficiary forms, the final divorce decree and any correspondence with the insurer. You may have to file a civil lawsuit in the superior court where the insured lived. There you can seek a declaration that the beneficiary change is invalid and ask the court to order the insurer to pay the proceeds to the correct recipient.
Be aware of time limits. North Carolina’s general three-year statute of limitations for written contracts (N.C.G.S. § 1-52) may apply, so act promptly. During litigation, you can request the court to preserve evidence, including witness statements and notes from agents who handled the change of beneficiary request.
Key Steps to Challenge a Beneficiary Change
- Review the life insurance policy and beneficiary forms for signatures and dates.
- Confirm the divorce decree and check whether it mentions beneficiary designations.
- Gather evidence of the insured’s capacity, intent and any signs of undue influence or fraud.
- Contact the insurer in writing to inquire about their file and any beneficiary change paperwork.
- Consult an attorney to prepare and file a petition in superior court for declaratory relief.
- File within applicable time limits, often three years from the date of the change.
- Request preservation orders to secure key documents and witness testimony.
If you face a contested life insurance beneficiary change after divorce or separation, you need clear guidance and timely action. The attorneys at Pierce Law Group have years of experience handling probate and estate disputes. Let us review your situation, gather the evidence you need and represent your interests in court. Contact us today by emailing intake@piercelaw.com or calling (919) 341-7055.
