How to remove a particular contact type as not available as beneficiary

All existing contacts associated with an employee are currently available for selection as beneficiaries, including an ex-spouse.

eg: When an employee reports a divorce by changing the spouse, updating the relationship type as X-spouse. The ex-spouse remains available for selection as a beneficiary.

Question: Is there a way to control certain beneficiaries not to appear in the list of beneficiaries. How to deal with such scenario.

The below setup is done and Ex-spouse is not included in the Beneficiary allowed list. Still it appears in the employee page.