What Happens To Life Insurance During Divorce? 
The court decides what happens to life insurance during divorce , or you can work it out with the spouse from whom you are being divorced . If the need for the life insurance policy still exists , you may need to change the beneficiary of the policy . If the owner of the policy is no longer appropriate , you may also need to agree to change the owner . E.g. . The policy was purchased to pay off the house , the owner of the policy is the husband , but the house is going to the -LRB- soon to be ex -RRB- wife . 