How to Update Beneficiaries After Divorce in Massachusetts

Massachusetts law automatically revokes your ex-spouse as a beneficiary on your will and state-governed life insurance policies when the divorce is final. Most people assume that covers everything. It doesn't.

Federal law overrides state law for employer-sponsored retirement plans and group life insurance. Unless you manually update the beneficiary forms with your employer's HR department, your ex-spouse will legally inherit your 401(k), pension, and group life insurance — regardless of what your divorce decree or separation agreement says.

Why Massachusetts Law Isn't Enough

Under G.L. c. 190B, § 2-804, the entry of a judgment absolute automatically revokes any provision in a will, revocable trust, or state-governed insurance policy that names the ex-spouse as a beneficiary, fiduciary, or agent.

This covers:

• Personal wills and revocable trusts
• Individual life insurance policies (purchased outside of employment)
• State-governed annuity contracts

This does NOT cover:

• Employer-sponsored 401(k) and 403(b) accounts
• Corporate pension plans
• Employer-provided group life insurance
• Any benefit plan governed by the Employee Retirement Income Security Act (ERISA)

The Egelhoff v. Egelhoff Problem

The U.S. Supreme Court decided this exact conflict in Egelhoff v. Egelhoff (2001). David Egelhoff had a 401(k) and group life insurance through his employer. After his divorce, he never updated the beneficiary forms. When he died, both his ex-wife (still listed as beneficiary) and his children from a subsequent relationship claimed the assets.

The Court ruled that ERISA preempts state law. The plan administrator was legally required to pay the ex-wife — the person on the beneficiary form — regardless of the divorce decree, the separation agreement, or any state law that was supposed to automatically revoke her designation.

This ruling applies in every state, including Massachusetts. Your separation agreement doesn't matter. What the court ordered doesn't matter. Whose name is on the beneficiary form with HR is what controls.

What to Update Immediately

Contact your employer's HR or benefits department and request beneficiary change forms for every plan:

401(k) and 403(b) accounts. Submit a new beneficiary designation form naming your chosen beneficiary. The old form listing your ex-spouse must be replaced. If you don't file a new form, the old one controls — indefinitely.

Corporate pension. Same process. If you're vested in a defined benefit pension, the beneficiary designation governs who receives survivor benefits if you die before or after retirement.

Group life insurance. Employer-provided group life insurance is governed by ERISA, not state insurance law. Your ex-spouse remains the beneficiary until you file a new designation. This is separate from any individual policy you purchased on your own (which is covered by the Massachusetts automatic revocation statute).

HSA, FSA, and supplemental policies. Health savings accounts, flexible spending accounts, and supplemental insurance (disability, accident, critical illness) may also have beneficiary designations. Check and update them all.

Timing: Don't Wait

Update these forms the day your judgment absolute enters. During the nisi period, you're still legally married, and the Rule 411 automatic restraining order may prevent beneficiary changes. The moment the nisi period expires, file the updated forms.

If something happens to you before the forms are changed, the plan pays your ex-spouse — and your actual intended beneficiaries will have no legal recourse under federal law.

Individual Policies: Update Them Anyway

For policies you purchased individually — personal life insurance, individual annuities, IRAs — the Massachusetts automatic revocation statute (§ 2-804) does apply. Your ex-spouse is theoretically removed as beneficiary upon divorce.

But insurance companies and IRA custodians don't monitor your marital status. Their internal records may still show your ex-spouse until you proactively submit new forms. Don't rely on "automatic" revocation to do the work. Update every beneficiary designation on every financial product you own.

Choosing New Beneficiaries

When you update your designations:

• Minor children shouldn't be named directly on retirement accounts — they can't legally receive the assets. Name a trust for their benefit or a custodian under the Uniform Transfers to Minors Act
• Always name a contingent beneficiary in case your primary beneficiary predeceases you
• Consider a per stirpes designation so that if a beneficiary dies before you, their share passes to their descendants rather than being redistributed

The Massachusetts Post-Divorce Checklist includes an ERISA beneficiary audit worksheet that lists every employer-sponsored plan to check, the exact questions to ask HR, and a tracking system to confirm each update is filed and acknowledged.

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