Divorce And Life InsuranceThe following information regarding divorce and life insurance policies can help you understand some the issues that need to be considered during divorce negotiations. In many divorces that include provisions for alimony or child support, it is a common practice to include a stipulation that the supporting spouse should carry a life insurance policy. This can guarantee that the children will still be provided for should the supporting parent die. How long the policy is maintained depends on what the policy was intended for. If it was meant as security for child support, it can be terminated when the dependent children reach the age of majority. Life insurance policies can also be maintained for longer periods of time if the parent so chooses. If life insurance is required to guarantee alimony, it may continue for as long as the alimony payments are required. When negotiating your divorce settlement, it is important to designate who will be the owner of the life insurance policy. This is an key factor because the owner controls the policy and has the right to name the beneficiaries. One way to insure that the policy is maintained as stipulated in the divorce settlement is to name the custodial parent as the owner of the policy. You can also include provisions in your settlement agreement that if the policy is allowed to lapse or if the beneficiary designation is changed, you or your children would be entitled to part of your ex's estate equal in value to the death benefit. The following questions and answers highlight some of the other issues that come up concerning divorce and life insurance policies.
Can my husband be required to maintain life insurance for my son? Tess' Question: My husband wants a divorce, and I discovered that he wrote the life insurance agency requesting a change of beneficiary. He has been insured since we got married and I am the primary beneficiary. We have a 12 year old son who is not listed as a beneficiary. What can I do to protect my interest for the life insurance for my son's benefit in case something happens to my estrange husband. Brette's Answer: As part of the child support aspect of your case, the court can order your husband to provide life insurance in a certain amount with your son as beneficiary. It is also possible sometimes for a person to have to buy life insurance naming the ex spouse as beneficiary as part of the alimony or spousal support part of the case. » Return to top Can my divorce be modified to include a life insurance provision? Mary' Question: I have been divorced for 5 years now and was just informed that a non-custodial parent can be asked to carry a life insurance policy for his children. Can I ask the court to include a life insurance clause now? Brette's Answer: If your decree does not order this, you would have to go back and ask for a modification and show some reason why things have changed to make this necessary. He hasn't complied with the court order regarding life insurance. Angela' Question: My divorce decree states that I can carry a life insurance policy on my former spouse. How do I get him to comply with signing a policy to make it effective? Can I obtain a life insurance policy on my former spouse based on the divorce decree without his signature? Brette's Answer: Usually the decree requires him to actually pay for the policy, so he has to apply for it. If he doesn't, you file papers with the court for enforcement/violation. » Return to top Is the life insurance policy affected if my ex starts a new family? Kim's Question: I just got divorced six months ago, and my ex's girlfriend is now pregnant. He is supposed to maintain life insurance until our children leave home. How would the life insurance be handled if he were to die over the next 12 years? Brette's Answer: Life insurance is determined by the policy. Whoever the insured names as the beneficiary is who gets it. If your divorce decree specified he had to maintain life insurance with your children as beneficiaries, he is still required to do so even if he has other children. Those other children would not be entitled to the proceeds of any policy naming your children as beneficiaries. Is the child entitled to the life insurance if a parent dies? Cassandra's Question: My child's father remarried, but is now separated from his current wife. Would my child be entitled to any of the life insurance if his father dies? Brette's Answer: Life insurance passes outside the estate. The person named in the policy is who receives it. Good luck. Do I have any rights to my step-dad's life insurance policy? Amber's Question: When my mother's husband died, they were separated. She was looking into a divorce and had talked to an attorney however she did not follow through. Do I have a right to some of his life insurance? There was no will. Brette's Answer: If they were not divorced, his estate will be divided according to state intestacy laws, which in most cases means it goes to the spouse and legal children. If he did not adopt you, you are not considered his child. Life insurance is distributed separately according to the terms of the policy. If your mother is listed, she will receive it. Good luck. If I was named as the beneficiary, can it be challenged when he dies? Tina's Question: My ex spouse has died, and he left me as beneficiary of his life insurance policy. If I have an adult daughter, can she challenge my receipt of this policy? Meaning can she claim her right to it, versus the ex spouse? Brette's Answer: Life insurance goes to the named beneficiary. It has nothing to do with estate law. Whoever he picks gets it. (Note: this only applies if the divorce decree spelled out the beneficiary status or if you were re-designated the beneficiary after the divorce) » Return to top Is the life insurance beneficiary controlled by the will? Dale's Question: My mom divorced my dad in 2002. She excluded him as beneficiary in her will, but he still received over $220,000. She had the policy and paid the premiums. Shouldn't the beneficiary be her own adult child that named as beneficiary in her will which included all assets? Brette's Answer: Life insurance is not distributed via a will, but can only be changed by directly changing the beneficiary on the life insurance plan itself. If she did that, you need to find a copy of the change form she submitted or the confirmation of the change. Am I still a beneficiary if life insurance wasn't addressed in the divorce? Sue's Question: My husband signed ownership of a term life ins policy over to me in 2003 and we divorced in 2004. Do I still have rights of ownership and beneficiary since this was NOT specifically noted on the divorce decree? Brette's Answer: The problem is that in the eyes of the insurance company you may not have an insurable interest, unless there is alimony or child support that the life insurance is meant to back up. Can he change the beneficiary if the divorce decree states otherwise? Cathy's Question: In my divorce settlement, it stipulates that I am to remain the beneficiary on my ex-husbands life insurance policy. I recently found out that he changed the policy and took me off as the beneficiary. Is he allowed to do that and get by with it? Brette's Answer: No, you will need to either have your attorney contact his attorney, or go back to court since he is violating the order. » Return to top Why can't I stay a beneficiary on his work-provided insurance? Patrice's Question: My ex-spouse has a life insurance policy through his employer of which I am the beneficiary. He has been told that I cannot remain the beneficiary once our divorce is final because I'm not entitled to his employment related policy (which is elective, and he pays into it monthly). Is this a true statement? He pays me alimony and I am a full time student. Brette's Answer: Even if that is true (it may be a particular term of this policy), he can still take out another with you as beneficiary. It is very common to do this as part of the alimony plan. Can I change the beneficiary if insurance wasn't part of the divorce? Sherry's Question: I recently got divorced, and my husband has a $750,000.00 life insurance policy on me. Is there anything I can do to have this dropped? I heard that he can be made change the beneficiary. He also had one on himself naming me as the beneficiary. I don't think it's fair that he will benefit from my death! What advise could you give me? Brette's Answer: You are the owner of the policy on your own life and you can change the beneficiary. Just call the company and ask for a beneficiary change form. He is the owner of the policy on his life and controls the beneficiary of that policy. » Return to top
Related Articles: Brette Sember is a former family and
matrimonial attorney and mediator, nationally recognized expert, and author of
many books including
The Divorce Organizer & Planner,
No-Fight Divorce, and
How To Parent With Your Ex.
This column provides general information about the various aspects of divorce. It is not intended to take the place of legal counsel and should not be considered personal legal advice. For specific recommendations concerning your situation, please retain experienced legal counsel. WomansDivorce.com and Brette Sember disclaim any liability from any claim arising from any information contained in this column. This column is not a substitute for legal advice. Divorce
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