Life Insurance Requirements in a South Carolina Divorce

Reviewed by Carrie Warner, Attorney at Law, SC Bar No. 72836 · Last reviewed November 2, 2026

A South Carolina family court can require a spouse who pays alimony to carry life insurance so support continues if the payor dies. Agreements also commonly use life insurance to secure child support. Separately, a divorce can automatically revoke a former spouse as beneficiary on many policies, but not on most employer-provided group life insurance, so beneficiary forms need careful attention.

Why Life Insurance Comes Up in Divorce

Alimony and child support depend on the paying spouse’s income. If that spouse dies, the payments may stop when the family still needs them. Life insurance is one way to protect against that risk. It can also matter when one spouse owes the other a property settlement payment over time.

Life insurance questions in a divorce fall into three groups:

1. Should one spouse be required to carry insurance to secure support?
2. Who is the beneficiary on existing policies, and does the divorce change that?
3. Is an existing policy with cash value a marital asset to be divided?

Life Insurance to Secure Alimony

Under S.C. Code § 20-3-130(D), when the court awards alimony or separate maintenance and support, it may provide security for the payments. That includes posting money, property or bonds, and requiring a spouse to carry and maintain life insurance to assure support beyond the payor’s death.

The statute tells the court to give due consideration to:

• The cost of premiums
• Insurance plans the parties carried during the marriage
• The insurability of the paying spouse
• The probable economic condition of the supported spouse when the paying spouse dies
• Any other factors the court considers relevant

The court is not required to order insurance in every alimony case. For example, if the paying spouse has a serious health condition that makes coverage unavailable or very expensive, the court may look at other forms of security. Our types of alimony page explains which forms of alimony continue and which end, which affects how much security may be needed.

Life Insurance to Secure Child Support

The alimony statute specifically mentions life insurance. For child support, settlement agreements commonly include a requirement that one or both parents keep life insurance naming the children, or a trustee for them, as beneficiary until support ends. Child support in South Carolina generally continues until 18 or high school graduation, and can extend while the child is still in high school, up to the end of the school year after the child turns 19, under S.C. Code § 63-3-530(A)(17).

Because minor children cannot directly receive large sums, agreements often name a trustee or custodian. Our page on guardianship for minor children discusses related planning.

Drafting the Requirement

A vague insurance clause can lead to disputes later. Agreements and orders commonly address:

• Amount: the face value, and whether it can decrease as the remaining support obligation shrinks
• Beneficiary: the former spouse, the children, or a trust
• Duration: until alimony ends, until the youngest child’s support ends, or another date
• Proof: how often the insured spouse must provide proof the policy is in force
• Premiums: who pays, and whether this was considered in setting support
• Remedy: what happens if the policy lapses, such as a claim against the estate

Ask the insurer to send lapse notices to the protected spouse as well, where the insurer allows it.

Beneficiary Changes and § 62-2-507

Many people forget to update beneficiary designations after a divorce. South Carolina law addresses this. Under S.C. Code § 62-2-507, effective since January 1, 2014, a divorce generally revokes a revocable beneficiary designation or fiduciary nomination in favor of a former spouse in a covered governing instrument. In practice, the former spouse is treated as if they had died before the insured for those designations, unless the express terms of the instrument, a court order, or a contract relating to the division of the marital estate provides otherwise.

This can protect someone who simply forgot to update a form. It can also defeat a settlement if the spouses intended the former spouse to remain the beneficiary. If your agreement requires you to keep your ex as beneficiary, make sure the order says so expressly and that the policy reflects it.

The ERISA exception

Group life insurance offered through a private employer is often governed by ERISA, a federal law. In Egelhoff v. Egelhoff, 532 U.S. 141 (2001), the U.S. Supreme Court held that ERISA preempts a state law that automatically revoked a former spouse’s beneficiary designation for an ERISA plan. In Kennedy v. Plan Administrator for DuPont, 555 U.S. 285 (2009), the Court held that the plan administrator must follow the plan documents, including the beneficiary form on file.

The practical result: if you have employer group life insurance, § 62-2-507 may not remove your former spouse. If you want to change the beneficiary, file a new form with the plan. If you are the one being protected, make sure the required designation is actually on file. Our article on ERISA waivers in divorce covers related issues.

Government employee plans are another exception. A 2018 amendment to § 62-2-507 excludes beneficiary designations under certain government employee benefit plans, and federal programs for government employees and service members have their own beneficiary rules. Check with the plan directly.

Policies With Cash Value

Term life insurance has no cash value. Whole life and universal life policies can build cash value over time. Cash value accumulated during the marriage may be marital property, divided as part of equitable apportionment. Ask the insurer for a current cash surrender value statement when you gather financial records.

After the Divorce: A Checklist

• Review every life insurance policy, retirement account and annuity.
• Update beneficiary forms with each plan, as the decree allows.
• If you must keep a policy, set up automatic premium payments.
• Calendar the dates you must send proof of coverage.
• Update your will and powers of attorney. See updating your estate plan after divorce.

For other topics, return to the South Carolina Divorce Guide.

Frequently Asked Questions

Can a South Carolina court make my ex carry life insurance for me?

Yes. When awarding alimony, the court may require life insurance to secure support beyond the payor’s death under S.C. Code § 20-3-130(D), after considering cost, insurability and other factors.

Does divorce remove my ex as my life insurance beneficiary?

For many policies, S.C. Code § 62-2-507 generally revokes a former spouse’s designation on divorce. It usually does not reach ERISA employer group plans, so update beneficiary forms directly.

Can life insurance be required to secure child support?

Agreements commonly include this. Discuss with your attorney how it can be built into your settlement or order.

How long do I have to keep the policy?

It depends on your order or agreement. Many tie the requirement to the end of alimony or child support.

Is a whole life policy divided in divorce?

Cash value that built up during the marriage may be marital property and can be considered in the division.

Sources

• S.C. Code Title 20, Chapter 3 (§ 20-3-130)
• S.C. Code Title 62, Chapter 2 (§ 62-2-507)
• S.C. Code Title 63, Chapter 3 (§ 63-3-530)
• U.S. Department of Labor: Employee Benefits Security Administration (ERISA)