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  • Handling of Life Insurance in Divorce Case

    From Rick@21:1/5 to All on Sun Sep 10 09:39:24 2023
    State of Florida. Wife purchases $1 million insurance policy on husband
    with herself as beneficiary and pays all required premiums. Subsequently,
    wife divorces husband. In a typical divorce case, what becomes of the
    policy? Assuming it's a relatively uncontested divorce where the major
    issue is how to equitably distribute property, what happens to that policy?

    More generally, is an ex-wife allowed in Florida to keep such a policy on
    her ex-husband? He initially agreed to the policy since it was opened while they were married but no longer feels comfortable with her having such a policy. Will the Court typically order some kind of end to the policy or transfer of the policy or modification of beneficiary? Is the now ex-wife entitled to a refund of the premiums she has paid if the policy is ordered ended or transferred?

    Assume it's a term policy with no intrinsic cash value. Assume there is no alimony, child support or other ongoing payments between the parties.

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  • From John Levine@21:1/5 to All on Sun Sep 10 19:34:17 2023
    According to Rick <rick@nospam.com>:
    More generally, is an ex-wife allowed in Florida to keep such a policy on
    her ex-husband?

    Interesting question. Insurers require the policyholder to have an
    "insurable interest" in the insured.

    Assume it's a term policy with no intrinsic cash value. Assume there is no >alimony, child support or other ongoing payments between the parties.

    If it's a term policy, the premium you pay each year gets you the
    value of the policy if the insured dies, otherwise nothing. There is
    nothing to refund, other than perhaps part of the most recent year's
    premium if the policy is cancelled during the year.

    Lacking alimony or child support, there is no insurable interest I can
    see. I would guess that regardless of what the court said, the
    insurance company would cancel the policy when they found out, and
    probably refuse to pay other than refunding the post-divorce premiums
    if the ex-husband subsequently died.
    --
    Regards,
    John Levine, johnl@taugh.com, Primary Perpetrator of "The Internet for Dummies",
    Please consider the environment before reading this e-mail. https://jl.ly

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