Under insurance law, when can a common-law spouse be designated as a beneficiary?

A common-law spouse can be designated as a beneficiary in situations where a legal marriage has been dissolved. This is important because, in many jurisdictions, once a legal marriage is terminated through divorce, the legal spouse is no longer a beneficiary by default, and the person can choose to designate a common-law partner instead. This reflects the understanding that individuals have the right to allocate their benefits to a partner with whom they have established a significant and long-term relationship, reflecting their wishes and the nature of their commitment.

In jurisdictions that recognize common-law partnerships, the designation of a common-law spouse as a beneficiary is based on the acknowledgment of the relationship's validity and the personal choice of the individual who is designating beneficiaries. The common law spouse may have the same rights as a legal spouse regarding the division of benefits, especially in the absence of other legal claims. This provides clarity and protection to individuals who have formed a meaningful partnership without formally entering into a legal marriage.