Ex-spouses may be eligible for certain benefits following divorce. Texas laws can help you find out if an ex-spouse is eligible to be a beneficiary. Your divorce decree may also specify your ex as a beneficiary. If your divorce decree didn't specify who should be the beneficiary you might consider changing that name in a will. The Texas laws on beneficiaries of a divorce decree may help you decide whether or not to name your ex as a beneficiary.
Preemption under ERISA
The Supreme Court recently considered ERISA preemption for ex spouses acting as beneficiaries. The Court ruled that even though the beneficiary had no vested rights, the administrator of the plan was obligated to pay benefits. 29 U.S.C. SS 1104(1)(D) to determine that in this case the administrator of the plan acted in accordance the plan's documentation. This meant that the plan administrator met his ERISA duty and paid benefits to the ex-wife.
A dissolution of marriage order revoked the former spouse's designation as beneficiary in the employee retirement plan. While this may seem like a "catch-all" provision for beneficiaries, the decision demonstrates that the dissolution of marriage order does not apply to employee benefit plans. Therefore, ERISA preemption for ex spouses as beneficiaries remains intact. However, the ruling does NOT address the legality for naming a former spouse a beneficiary in retirement plans.
Exceptions to "revocation-on-divorce" laws
A divorce decree usually nullifies beneficiary designations. However, in some cases the decree may allow the former spouse as the beneficiary. Ann may agree to be Joe's beneficiary of Joe's life insurance policy. The divorce decree will override the normal revocation on divorce rule. Ann can notify Joe's company to be made the beneficiary of Joe’s policy.
This scenario can lead to issues such as retirement accounts and life insurance policies. If a divorced person had named his former spouse as a beneficiary, it would be difficult for any children to collect on these assets if their parents divorced. If a person passes away without changing the beneficiary on the policy's beneficiary designation, the former spouse can still claim the assets. However, the revocation-on-divorce law automatically nullifies such designations so that Kaye could benefit from the money.
There are limitations to ex-spouses' names as beneficiaries
It is possible to name ex-spouses the beneficiaries, but it is best to be aware about the limitations. In certain jurisdictions, ex-spouses may not be named as beneficiaries after a couple gets divorced. Before making this designation, it is a good idea to speak with your spouse. Ex-spouses can be named as beneficiaries. However, it is important to get consent from your current spouse.
You may be able to change beneficiaries in your trust and will. You can change the beneficiaries of your will or trust before finalizing the divorce. Your ex-spouse will likely be entitled to some assets. You cannot change the beneficiaries if ex-spouses are named in your will after the divorce. This is the Automatic Temporary Restraining Order (ATRO), and it can prevent you changing your beneficiaries later.
Change of beneficiary before divorcing is final
It's financially sound to change your beneficiary on your life insurance policy after divorce. While it is understandable you might not want your ex to be rewarded for his infidelity, it could be wise to take into consideration your children's long-term financial goals and avoid any future problems. Make sure the spouse you are changing your beneficiary designations agrees to it. This is especially important if you have been through a long divorce process. You can name the children beneficiaries if you have children.
It is important to speak with an attorney before changing beneficiaries. Doing so could result in you being accused by your ex-spouse of trying to take their assets. It is also likely that your changes will violate state and court rules. You should always consult a divorce lawyer to ensure you aren't violating the law. It is not an easy process to divorce. You should not change beneficiaries before the divorce is final. This is why it is best to consult an attorney.
FAQ
Do lawyers earn more than other professions in the United States?
No. Lawyers usually earn less than dentists or engineers, teachers and nurses, accountants, pharmacists and veterinarians. Lawyers are paid an average of $55,000 each year.
What is the difference in a transactional lawyer versus a litigator lawyer?
There is a big difference between attorneys who specialize in transactional and lawyers who specialize in litigation. It's the type of legal problem they are most likely to encounter. Transactional lawyers specialize in contracts, real property transactions, business formation, and intellectual property issues. Litigation attorneys specialize in disputes involving corporations or partnerships, trusts and estates as well as insurance claims and personal injury cases.
The two types of attorneys have different sets of skills and knowledge required for each type of case. If you are looking to hire a transactional lawyer, for example, he will need to be able to prepare agreements, negotiate terms, and handle conflicts. An attorney in litigation must be well versed in the rules of evidence, limitations, discovery rules, etc.
You might also find other differences depending on where your client is located. A New York City lawyer might not be as familiar as an attorney who practices in California. And a Florida attorney would be less familiar with Texas laws than someone practicing in Texas.
How do lawyers make their money?
Hourly rates are used to bill clients for legal services. Lawyers get paid for the time they invest in these matters. Hourly rates vary depending upon the complexity of the matter and the amount of experience a lawyer has.
The most experienced lawyers charge higher hourly fees because they have developed expertise over many years.
As a less experienced lawyer, he/she may charge lower hourly rates because he/she has learned how to manage cases more efficiently.
Lawyers often receive additional compensation beyond the hourly rate for certain cases. In some cases, lawyers representing criminal defense may be eligible for bonuses if their case is successful.
Statistics
- Just 59.2 percent of 2015 law school grads held full-time, long-term jobs as lawyers 10 months after graduation, according to data from the American Bar Association (ABA). (rasmussen.edu)
- The median annual salary for lawyers in 2016 was $118,160, according to the U.S. Bureau of Labor Statistics (BLS). (rasmussen.edu)
- The nationwide number of first-year students enrolling last fall increased by almost 12%, according to recent data by the American Bar Association. (stfrancislaw.com)
- According to the Law School Admission Council, the number of people applying for these programs was up 13% last fall. (stfrancislaw.com)
- According to a 2019 Robert Half Legal Consulting Solutions survey, 54% of law firms were planning to expand their legal teams. (stfrancislaw.com)
External Links
How To
How do I find free legal help?
It is difficult to find a good pro bono lawyer because there are so many out there who would like your business. There are several options to help you find a probono lawyer. There are many options. You can ask your local bar associations for help, search the internet to find pro bono lawyers, or contact your state's bars association. You can also find a probono attorney through your local law school. Many law school students have the opportunity to assist clients with low income to get justice. If none of the above options sound appealing to you, you may want to contact a nonprofit organization like Legal Services Corporation. LSC finances organizations in the United States that provide civil legal assistance free of charge to people below the poverty threshold. The organization helps fund programs that assist low-income individuals with housing issues, child support enforcement, family law matters, consumer protection, bankruptcy, immigration, and public benefits. LSC not only provides financial assistance but also offers guidance and support to its grantees regarding how to best serve their clients. For example, some of the services provided include:
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Financial counseling
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Assistance with filing bankruptcy
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Helping families to resolve domestic violence issues
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Representation in front of administrative agencies
Here are some suggestions for people who are looking for pro bono attorneys.
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You shouldn't waste your time looking for a specialist in your case. Lawyers who work pro bono often represent clients from different backgrounds, so they may not have the experience to handle your specific case.
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You should look for a lawyer with experience representing low-income clients. This means the lawyer is familiar with how to effectively communicate with this population.
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Ask if there is any specific training for your area. You should ensure that the lawyer you choose handles landlord/tenant disputes.
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Check to see if the lawyer will accept new clients. Some lawyers specialize in certain types of cases. You may not be able find one that works exclusively with pro bono clients.
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Avoid lawyers who claim they are experts in one particular area of law. Many lawyers claim they are specialists in a specific area of law but do not know enough about the subject matter.
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A strong reputation is essential. Ask close friends and family for recommendations. Also, search online for reviews from other clients.