Could Your Ex Inherit Your Pension? Here’s What to Do Before It’s Too Late

Divorce doesn’t just end a marriage—it can also complicate your financial legacy. If you’re wondering whether an ex-spouse could inherit your pension after your death, the answer depends on state laws, federal regulations, and the steps you’ve taken to protect your assets. With rising awareness of post-divorce financial risks, it’s critical to understand how pension distribution works and what safeguards exist.

State Laws: Automatic Revocation or a Race to the Courthouse?

The first line of defense against unintended pension transfers lies in state laws. In New York, for instance, EPTL 5-1.4 automatically revokes an ex-spouse’s beneficiary status for pensions, retirement accounts, and life insurance policies after divorce. This means your ex would be treated as if they predeceased you—unless they were reinstated via a court order.

But not all states are so clear-cut. In community property states like California, Texas, or Arizona, marital assets—including pensions earned during the marriage—are typically split 50/50 unless explicitly waived. A divorce decree alone may not suffice; without a Qualified Domestic Relations Order (QDRO), your ex could still claim a share of your pension even years later.

Federal Regulations: The SECURE Act and FERS Updates

Federal rules add another layer of complexity. The SECURE Act of 2019—and its 2020 sequel—eliminated the “stretch IRA” for most non-spouse beneficiaries, requiring inherited IRAs to be distributed within 10 years of the account holder’s death. This means an ex-spouse inheriting an IRA would face strict withdrawal deadlines, but they could still access the funds within that timeframe.

For federal employees, updates to the Federal Employees Retirement System (FERS) in 2024/2025 increased the Basic Employee Death Benefit from $15,000 to $42,607.52, with adjustments tied to inflation. However, an ex-spouse can only claim this benefit if a court order was filed with the Office of Personnel Management (OPM) and they meet criteria like a marriage lasting at least nine months and no remarriage before age 55 (unless the marriage lasted 30+ years).

How to Protect Your Pension Legacy

1. Review Beneficiary Designations
2. Log into your 401(k), IRA, or pension plan portal and confirm who is listed as your primary and secondary beneficiaries.

3. Even if you divorced years ago, your ex may still be listed unless you explicitly changed it.

4. Secure a QDRO During Divorce

5. A QDRO is mandatory to divide retirement assets like pensions and 401(k)s. Without one, courts can’t enforce an ex-spouse’s claim—or block it.

6. Example: In California, failing to file a QDRO after divorce could leave half your pension frozen until it’s resolved.

7. Update Estate Plans

8. Revise your will, trusts, and healthcare proxies to exclude your ex. Joint property (e.g., homes held in “joint tenancy”) may still pass to them unless converted to tenancy in common.

9. Know State-Specific Rules

10. States like Wisconsin and Washington (community property) have different default rules than equitable distribution states like New York or Florida. Consult an estate attorney to tailor your strategy.

The Cost of Inaction: Unintended Inheritances and Legal Battles

The stakes are high. In 2023, a Florida appellate court ruled that an ex-spouse retained a 35% share of their ex’s pension because the original divorce decree lacked a QDRO. The case dragged on for years, costing both parties tens of thousands in legal fees.

Meanwhile, the 10-year IRA distribution rule under the SECURE Act can backfire. Suppose you named an ex as your IRA beneficiary in 2010. If you die in 2025, they’d have until 2035 to empty the account—potentially draining your intended heirs of funds you meant for them.

Conclusion: Take Control of Your Financial Legacy

The data is clear: failing to update beneficiary designations or obtain a QDRO leaves your pension vulnerable. With the Basic Employee Death Benefit now exceeding $42,000 and post-divorce litigation costs averaging $10,000–$20,000, proactive steps are essential.

• Act now: Review your beneficiary forms today.
• Consult a specialist: An estate attorney can draft a QDRO and ensure compliance with state/federal laws.
• Plan for the worst: Assume your ex may contest your wishes—then prepare to prove your intent.

Your pension is your hard-earned nest egg. Don’t let it fund someone else’s future by accident.

In the end, knowledge is your best defense. By understanding the rules and taking action, you can ensure your financial legacy reflects your choices—not your ex’s.