We had an unusual set of circumstances arise. The good news is that we are dealing with less than $1,000 in benefits, so very little exposure is involved here. Participant enrolled in a 401(k) plan 2 years ago, indicated he was unmarried and designated his sister as his beneficiary. He died unexpectedly, one week before his divorce was finalized. The divorce was ultimately finalized after his death. Should the benefits be paid to the designated beneficiary or the ex-wife?? I'm thinking ex-wife since the beneficiary designation could be considered invalid since she didn't consent to the designation of another beneficiary. There are no children and the sister was designated as the beneficiary of his life insurance policy. Trustee would like to honor the request of the participant if at all possible.

If he was married for more than a year, the old beneficiary designation is void. When was the marriage and divorce?

They were married 9/17/93 and separated in May, 1999. I guess when he enrolled in the plan he didn't feel very married!

I think that the concept of being semi-divorced is intellectually akin to being semi-pregnant.