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 Posted: Wed Dec 28, 2011 11:00 pm Post subject: I'm going through a divorce right now, my husband has had a |
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| I'm going through a divorce right now, my husband has had a life insurance policy (whole life) for the past 31 years with me as the beneficiary. He wants to take this policy with him after the divorce is over and make his girlfriend of 2 years, the beneficiary of this policy which is a $50,000 policy in death. my question is can he do this ? I am also on SSI disability as i can not work. Our children are grown. My lawyer states that it is his policy and he can do with it a he wishes. I say if he wants to buy her a life insurance policy then he should do it with a new one after he marries her, since this was paid with marital assets, but this might be impossible since he is 53 and has diabetes. If anyone can help advise me with this i would appreciate it, also i don't know if my lawyer is giving me good advise, as my divorce will be going to trial in a few months and i would hate to have to change lawyers this close to the end. i was wondering if there is case law regarding a matter like this. Thanks Carol |
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mkm8637
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| Posted: Thu Dec 29, 2011 3:42 pm Post subject: |
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The policy holder has the right to appoint or change the beneficiary of a policy at his sole discretion. Your husband can drop you as his beneficiary if he chooses to. Since an insurance policy is a contract between the insured and the insurer, the insurance company has no other choice but to pay the named beneficiary. As for the policy being purchased and paid for with marital assets, some states, like Indiana and Wisconsin, say that all assets acquired during the course of a marriage belong to both parties equally. Ask your attorney if he can look up a case law to support your claim
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Heller
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| Posted: Fri Dec 30, 2011 10:41 am Post subject: |
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| Quote: | | my question is can he do this ? I am also on SSI disability as i can not work. Our children are grown. My lawyer states that it is his policy and he can do with it a he wishes. |
Your attorney is not incorrect, but he is an idiot. Yes, as the policyowner, your husband might already have changed the beneficiary to his girlfriend -- he has the legal right to do that.
But you can always petition the court to do one of several things: (1) require your husband to name you the IRREVOCABLE beneficiary, (2) Assign ownership of the policy to you, or (3) leave things as they are, with your husband in control of the policy, but order your husband to compensate you with an amount of money up to $50,000.
Personally, I believe option (2) represents the best alternative -- assuming that no money has been borrowed from the contract. As the owner of the policy, you may choose to keep it in force, pay the premiums, and collect the death benefit when he dies. You could surrender the policy if it has cash value and collect the cash today and forgo the death benefit down the road.
With regard to a policy loan, if one exists, you would want to know that and make him pay it off before accepting assignment of the policy. If you are not sure what condition the policy is in, your attorney would need to make a motion to obtain an "in force illustration" or ledger.
If your attorney is unwilling to do this for you, you need another attorney, ASAP.
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MaxHerr
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| Posted: Fri Dec 30, 2011 10:44 am Post subject: |
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| Quote: | | my question is can he do this ? I am also on SSI disability as i can not work. Our children are grown. My lawyer states that it is his policy and he can do with it a he wishes. |
Your attorney is not incorrect, but he is an idiot. Yes, as the policyowner, your husband might already have changed the beneficiary to his girlfriend -- he has the legal right to do that.
But you can always petition the court to do one of several things: (1) require your husband to name you the IRREVOCABLE beneficiary, (2) Assign ownership of the policy to you, or (3) leave things as they are, with your husband in control of the policy, but order your husband to compensate you with an amount of money up to $50,000.
Personally, I believe option (2) represents the best alternative -- assuming that no money has been borrowed from the contract. As the owner of the policy, you may choose to keep it in force, pay the premiums, and collect the death benefit when he dies. You could surrender the policy if it has cash value and collect the cash today and forgo the death benefit down the road.
With regard to a policy loan, if one exists, you would want to know that and make him pay it off before accepting assignment of the policy. If you are not sure what condition the policy is in, your attorney would need to make a motion to obtain an "in force illustration" or ledger.
If you were to accept option (1), it would be your immediate responsibility to make sure that the beneficiary designation is completed as required, and then you have to notify the insurance company that you need to be notified of any pending policy lapse, or attempts to alter the policy in any manner, such as a loan.
If your attorney is unwilling to do this for you, you need another attorney, ASAP.
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CA-licensed P&C Broker-Agent and Life Agent. CA Insurance Lic #0596197. Now investigating insurance company abuses, and providing litigation support and expert witness services. Send me your questions, and I'll send you my answers. |
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MaxHerr
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