Texas Probate Code 9.301 - Is there a loophole?

[insuranceappeal]

Hello,
I would like to know if there is a way to circumvent Texas Probate Code 9.301. I've read the law which states that one must declare/claim the life insurance policy in the final divorce decree or be re-designated by the spouse after the divorce is final. This policy was not issued by an employer, it was individually purchased so I don't believe that ERISA can be invoked and there are no children or joint businesses involved. We were never notified of this upon purchase of the policy. Is there any other way around this law? It seems unconstitutional for the state to step in and interfere with a private contract. Your help is greatly appreciated.
Kind regards

 

[Betty]

In Texas (per Tx. law) after divorce, the designation naming the ex-spouse as beneficiary is no longer effective. If there is a contingent bene - the proceeds will be paid to that person. If no contingent was named, the insurance proceeds are payable to the estate of the deceased and will be distributed according to the will or the state statutory intestacy rules - depends on whether or not there is a will.

If someone wanted the ex-spouse to receive the insurance proceeds upon their death, they needed to specify this in the divorce decree or re-designated the ex-spouse as beneficiary after the divorce is final.

Texas Family Code 9.301

This does apply to individual life ins. policies.