Naming Your Ex-Spouse As The Beneficiary of an Asset After Divorce in Virginia

Introduction

     The majority of all divorces in Virginia involve certain assets that offer the option to name a beneficiary in the event of your passing. These assets include brokerage accounts, retirement accounts, and pensions. Throughout the divorce process, it is important to consider the possibility that you may be required to list your ex-spouse as the beneficiary of some or all of these assets.

When You may be Required to Name Ex-Spouse as Beneficiary

     While many assets have the option of naming a beneficiary in the event of your passing, it is most common in divorces in Virginia that involve retirement and/or pension plans. To divide a retirement or pension plan, it usually requires that a Qualified Domestic Relations Order (QDRO) or similar document be signed by the judge and be submitted to the administrator of the plan. These orders include language about whether the spouse receiving the funds is to be named as a beneficiary of any survivor benefits.

     In Renberg v. Renberg, Record No. 1362-22-4, April 23, 2024, Circuit Court of Prince William County, the husband had a pension that included a survivor benefit plan. The parties’ settlement agreement did not mention anything about the survivor benefit plan; it simply stated that the parties had reached an agreement as to the division of retirement assets and attached documents supporting the agreement of the parties. A QDRO was submitted to the court which included a provision that required husband to list wife as the beneficiary of the survivor benefit plan connected to this military pension. Ultimately, the entry of this order was denied due to its terms being inconsistent with the parties’ settlement agreement.

Conclusion

     It is important to consider and clearly state in the Agreement or Court Order the possibility of designating your ex-spouse as the beneficiary of an asset post-divorce in Virginia. Settlement agreements should be very specific relating to this to avoid future disputes and delays in the divorce process. If you would like to discuss your options in your Virginia divorce matter, please call one of our offices at 804-325-1245 (Richmond) or 757-941-4298 (Williamsburg) to discuss how our attorneys can be of assistance.

Special thanks to Owen Togna for editorial assistance in drafting this article.