Updating Beneficiaries After Divorce: Pensions, Life Insurance and Death in Service

Your will doesn't control who receives death benefits from many pension and death-in-service schemes. Neither does your divorce decree. Trustees decide under the scheme's discretionary trust, and they rely heavily on the most recent Expression of Wish form — so if that still names your ex-spouse, it can materially influence the decision if you die.

Why Your Will May Not Control These Benefits

Many workplace pensions, personal pensions (SIPPs), and death-in-service schemes are held under discretionary trusts. This structure means:

• The pension trustees have the final say on who receives death benefits
• They are not legally bound by your will
• They rely heavily on your most recent Expression of Wish (or Nomination of Beneficiaries) form
• If that form still names your ex-spouse, the nomination remains a significant factor in the trustees' decision

The Succession (Scotland) Act 2016 revokes will provisions in favour of your ex after divorce — but it has no effect whatsoever on pension trust nominations. These are entirely separate legal instruments.

What You Need to Update

Workplace pension (defined contribution or defined benefit): Contact your employer's HR or pension administrator. They'll provide an Expression of Wish form. Name your new preferred beneficiary — children, parents, siblings, a new partner, or a combination.

Death-in-service benefit: This is typically a lump sum of 2-4x your annual salary paid by your employer's group life insurance scheme. It operates under the same discretionary trust structure. The nomination form is usually separate from your pension Expression of Wish — check with HR.

Personal pensions and SIPPs: Log into your provider's platform (Aviva, Scottish Widows, Hargreaves Lansdown, etc.) and update the nomination directly. Most allow this online without posting forms.

Life insurance policies: Individual life insurance policies (not through an employer) work differently. If your ex-spouse is named as the policy beneficiary, you need to contact the insurer to change it. If the policy was written in trust, you may need to restructure the trust deed — speak to the insurer about this specifically.

The Death-in-Service Trap

Death-in-service benefits are particularly dangerous to leave unupdated because:

• They can be worth £100,000-£400,000+ depending on your salary
• Many people don't even know they have this benefit (it's a standard part of most employment packages)
• The nomination form was likely filled out on your first day of employment — when you were still married
• Trustees give significant weight to the most recent nomination, even if it was completed years ago

Check your employment contract or benefits portal. If you have death-in-service cover, update the nomination immediately.

How Trustees Actually Decide

Even with an Expression of Wish form in place, trustees retain discretion. They'll consider:

• Your most recent nomination (strongest factor)
• Your current family circumstances (who depends on you financially)
• Any dependants not named on the form (particularly minor children)
• The terms of the trust deed

In practice, a clear, recently-dated Expression of Wish naming specific beneficiaries with percentage splits gives trustees clearer evidence of your wishes, but trustees retain discretion under the trust deed.

Pension Sharing Orders and Nominations Are Separate

If you have a Pension Sharing Order as part of your divorce settlement, that divides the relevant shareable slice of the pension fund — your ex receives a percentage of that value. But the Expression of Wish form governs what happens to death benefits (lump sums payable if you die before or after retirement). These are two completely independent processes. Having a Pension Sharing Order in place doesn't automatically update your beneficiary nominations.

Your Action List

1. Identify every pension and life insurance product you hold (workplace, personal, old employers)
2. Request or download the Expression of Wish / Nomination form for each
3. Complete new forms naming your chosen beneficiaries with clear percentage splits
4. Submit and confirm receipt — keep copies of everything you send
5. Set a diary reminder to review nominations annually or after any major life change

The Scotland After-Divorce Checklist includes an Expression of Wish tracker covering all major UK pension providers, with direct links to their nomination forms and a record-keeping template.

See more Scotland guides →