Can my ex husband keep a life insurance policy on me
The insured also created a will and designated the trust as the only recipient of her assets, including the life insurance policy on her life. The insured then named her daughter as the trustee. However, the insured never contacted the insurance company requesting a beneficiary change. She never changed the beneficiary. The insurance company gave both parties a chance to agree on a settlement and when a settlement could not be reached, it filed an interpleader a court action. We were proud to having been able to reach a result satisfactory to our client.SEE VIDEO BY TOPIC: Can I Cash Out My Term Life Insurance Policy? - Quotacy Q&A Fridays
SEE VIDEO BY TOPIC: When the Ex Spouse Is Beneficiary On Life Insurance Policy VV1015Content:
What to do With Your Term Life Insurance Policy if You Get Divorced
Life insurance is often put in place to protect spouses if their partner passes away. After all, they often end up responsible for the funeral costs as well as settling remaining debts, which can be expensive. A partner can also miss out on the remaining earning power of the deceased, and struggle to retire. A life insurance policy will cover these costs and bring some peace of mind during a difficult time. However, confusion often arises when the insurance policyholder gets divorced.
This raises the question of if an ex-spouse can collect life insurance money. In most states, you can collect life insurance money if you are legally the beneficiary on the policy , regardless of your relationship to the deceased. If you were married to the policyholder and they named you as the beneficiary, you can still receive the money if they die as long as they have not changed the beneficiary of the policy.
Usually, during the divorce process, this issue comes up and the policy is either canceled or the beneficiary changed. Remember, a divorce decree could require an ex to remain as the beneficiary of a policy. This helps to prevent conflict among families, and in the worst cases, life insurance fraud. There are also some insurance policies that have specific clauses in them to prevent ex-spouses from receiving a payout.
In these policies, there is a specific line stating that if the beneficiary and the policyholder get divorced, the beneficiary can no longer collect benefits.
If your ex-spouse is on the policy, you are the only one who can change it. Making that change now can help prevent serious conflict for your family in the future. Worried that your partner or family friend may have forgotten to change their beneficiary?
There may be some situations in which you still want to name your ex-spouse as a beneficiary. For example, if they would still be the person most likely to handle your funeral costs or remaining debts, it may make sense to have them listed as a beneficiary even if you are divorced.
If the two of you have children together, it may also benefit you both to keep them on your policy. You can also name your children as beneficiaries and name your ex-spouse as a trustee.
The option you choose will depend on what you feel most comfortable with and what is easiest for your family. If you are the primary caregiver of your children, but you are not the primary income earner, you may want to consider some additional solutions to protect yourself and your children. Specifically, you may want to consider taking out your own life insurance policy on your ex-spouse, paying the premiums yourself.
At a minimum, final expense life insurance can at least cover burial costs. If you are thinking about taking out a policy on your ex, you will need to compare quotes for different life insurance policies and from different companies. Make sure to do this for the best deal. Keep in mind that you can always change the beneficiary on your life insurance policy in most cases. There are a few cases in which you may not be able to change your beneficiary.
These are called irrevocable beneficiaries. Before taking out a life insurance policy, you should always confirm that you can change the beneficiaries later on if things change. If your life insurance policy has cash value , this can add an extra layer of complication to the divorce. Generally, the cash value can be considered as part of your joint assets as a couple, similar to any savings accounts or other investments you hold together. While there are no legal requirements as to what you need to do with the money, it makes the most sense to cash the policy out, split the money equally, and then each take out your own separate life insurance policies on your own.
Divorces can be tricky, and life insurance confusion adds another layer of stress to the situation. Make sure to continually update your life insurance policy to reflect your preferences as your life goes on. This will prevent an unwanted ex-spouse from being able to collect on your life insurance policy.
He recently died and it was discovered he did not carry the life insurance policy. I would think so. You will have to consult with an attorney I do not specialize in divorce decree settlements. The life insurance company will pay out as specified by the beneficiaries provided unless provided with a legal decree telling them to do otherwise. I am the Beneficiary on my ex spouses life insurance policy through work in our divorce decree it states that we both relinquish any rights as beneficiaries to any life insurance policies IRAs or anything like that the life insurance company paid me out the life insurance policy money is it legal to keep that money or do I need to give that to his family in other words does the divorce decree trump me as beneficiary.
I believe that it DOES supersede the beneficiary form, but you should check with an attorney. Assuming the life insurance company did not have a copy of the divorce decree, they would have no way of knowing.
In what situations can an ex-spouse collect life insurance money? In what situations can an ex-spouse not collect life insurance money? How should I handle life insurance during a divorce? Reg Brown April 20, at pm. Thomas Rockford April 22, at pm. Irrevocable beneficiary Reply. June April 22, at pm. I am the Beneficiary on my ex spouses life insurance policy through work in our divorce decree it states that we both relinquish any rights as beneficiaries to any life insurance policies IRAs or anything like that the life insurance company paid me out the life insurance policy money is it legal to keep that money or do I need to give that to his family in other words does the divorce decree trump me as beneficiary Reply.
Thomas Rockford April 24, at am. Leave a Reply Cancel reply Please fill all the fields below your email won't be displaied on the site. Name required. Email required , will not be published. Help protect yourself with Life Ant.
Can an Ex-Spouse Collect Life Insurance Money?
The following answers regarding divorce and life insurance policies can help you identify and understand some of 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.
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What happens to a life insurance policy after a divorce?
Meanwhile, At the convergence of these two statistics is a thorny financial and legal matter: what you do with a life insurance policy after a divorce. Divorce can be an emotional and financial minefield, as you and your former partner negotiate the division of assets, homes, and possessions, and the custody of children. And part of the process of untangling your lives will be managing and changing any existing life insurance policies you or your partner hold. Your shifting personal and financial circumstances may also mean you need to revise the level of cover you hold. How complex this process will be will depend on the type of life insurance you hold; single or joint and whether they're linked to a mortgage on a co-owned property. Below we run down the steps of handling these various policies following a divorce and the complications that might arise. However, it's more likely than not that your former spouse was listed as the primary beneficiary of your single policy and you'll likely want to remove them, especially if you don't share children. To do this, contact your insurer to change the person named on the policy.
An Ex-Spouse’s Right to Life Insurance Benefits
In some cases, the court orders that the supporting spouse carry a life insurance policy to provide for the children or guarantee alimony. Marriage and divorce are both common experiences. In Western cultures, roughly 90 percent of people get married before they turn 50 years old.
Life Insurance After Divorce
Ed Leefeldt - Last updated: Dec. When you are going through a divorce, you need to protect yourself financially. And insurance -- particularly life insurance -- could be a valuable tool for that, say lawyers and financial planners. In some divorce cases, neither person has a life insurance policy and the court may order the breadwinner to buy one as part of the settlement to ensure the financial security of the couple's children and the surviving spouse.
My ex-husband had two life insurance policies that named me as the beneficiary when we divorced. I asked that this be retained during his lifetime and the beneficiaries would be our son and daughter. This also was written up in our divorce papers. He called our son and daughter at his retirement and told them they would need to start paying the life insurance policies and that he could no longer afford the monthly payment. Also read: You need more life insurance and it is probably much cheaper than you think. He did remarry and has an adult son by this marriage.
How Life Insurance Works in a Divorce
Survive Divorce is reader-supported. Some links below may be from our sponsors. Sometimes, life insurance as an issue can be overtaken in a divorce by other higher profile and more contentious issues such as child custody, alimony and asset division. However, life insurance is an important part of the discussion, especially when children are involved, because it can provide years of financial protection for those children and for one or both spouses. Working through life insurance as part of a divorce does require some effort, as decisions need to be made about cash value if it exists, who the beneficiaries are going forward, and who will pay for the policy, among other things. More often than not, it makes good sense to consult a Certified Divorce Financial Analyst to determine the best options for your financial situation. In all situations, it should be an integral part of any divorce settlement and should be considerable thought before final divorce papers are agreed upon. To change the beneficiary of your life insurance policy, you will need to contact your life insurance company and request a Change of Beneficiary form like the one below which you will complete and return to the insurance company.
Our content is free because we earn a commission when you click or make a purchase from links on our site. Learn more about how we make money. By far, the 1 reason a woman takes out life insurance on her ex-husband is to protect her alimony income.
Life insurance is often put in place to protect spouses if their partner passes away. After all, they often end up responsible for the funeral costs as well as settling remaining debts, which can be expensive. A partner can also miss out on the remaining earning power of the deceased, and struggle to retire.
Among the messy tasks that must be undertaken in a divorce, sorting out life insurance is one that often gets overlooked. In the midst of the custody battles, divvying up assets, searching for a new home, ensuring the children adjust as smoothly as possible and just generally re-acclimating to life as a single person, figuring out what to do with life insurance sometimes falls by the wayside. However, dealing with life insurance is an important part of the divorce process.