by phola » Tue Dec 29, 2009 07:05 pm
My divorce decree calls for the ex-husband to keep his current life insurance policy to insure the value of child support payments. I understand that even if I was named irrevocable beneficiary of the policy, the policy could lapse or be rescinded without notification to me so that's not much of a safety measure. So my question is what is the easiest way to enforce this provision: should I just ask to have the ownership on the policy changed to me so I have control of the policy? But how could that be done in a way that keeps him with the obligation to pay the premiums? In other words, if I'm the owner, does it mean I am responsible to pay for it?
Posted: Tue Dec 29, 2009 08:19 pm Post Subject:
You should be the owner. It's the only way that you will know if the premiums are being paid.
Posted: Wed Dec 30, 2009 12:14 am Post Subject:
The divorce decree is the vehicle that ensures the policy remains in force. You don't need to be the owner, but that'll ensure the policy is inforce.
Husband would be smart to ensure that proceeds from the life policy are placed in trust for the children. This will depend on how good his attorney and life agent or financial advisor is.
Sorry, not a knock on you, but there's no way I'd willingly name my ex wife the beneficiary of a policy required by divorce decree. Trustee with a spendthrift provision.
Posted: Wed Dec 30, 2009 12:22 am Post Subject:
BNTRS, how will the divorce decree ensure that the policy is in force. Assume that we get divorced and I need to keep insurance on my life with you and/or the kids as beneficiaries. How will you know that I dropped the policy? You won't know until after I die.
Posted: Wed Dec 30, 2009 02:18 am Post Subject:
The divorce decree requires it. As the ex spouse I have the ability to make my former spouse prove coverage required under the decree.
If you I were that worried about it, I'd check on proof of coverage once a year.
Another option would be to negotiate the decree to require that my wife and I obtain life insurance on each other. By which I mean that I buy AND PAY FOR a policy on my ex spouse.
Posted: Wed Dec 30, 2009 11:28 am Post Subject:
The problem still exists even if proof is needed. If the husband screws up intentionally or accidentally and doesn't pay the premium, the coverage will lapse and if he's not healthy, he won't be able to get more coverage.
If coverage is needed, the ex-wife needs to be the owner and beneficiary. It is the only way to guarantee that coverage stays in force.
Posted: Thu Dec 31, 2009 01:02 am Post Subject:
Again, the circumstance determines the mode. If the husband is a slug then yes, have the agreement be the wife buy life insurance on the husband.
The money ultimately if for the children.
Posted: Sat Jan 02, 2010 01:44 am Post Subject:
As BNTRS implies, a good divorce attorney will demand the ownership be ceded to the departing spouse/beneficiary so as to avoid the complications, but also require that the insured spouse pay the premiums for the policy. If paid as part of an alimony settlement, the value of the premiums could be deducted by the insured, and taxes paid on the value by the owner/beneficiary-spouse.
Many insurers, knowing that an irrrevocable beneficiary exists, if they have contact information for that person, will notify them of an impending lapse so that they have an opportunity to protect their intrerest in policy proceeds by paying the premium. They can go after the non-paying spouse in court, if paying the premium is part of the divorce decree.
Posted: Sun Jan 03, 2010 09:32 am Post Subject:
In my case, I had 3 minor children in the house when my wife and I divorced. Her attorney calculated the amount of alimony and child support she would be entitled to, until the kids turned 18 (or remained in school) and I was required by the court to purchase a life insurance policy large enough to cover that amount. I was even given the option of purchasing a decreasing term but elected not to.
My former spouse was awarded ownership of the policy and thus received a statement from the insurance company every year. If I had missed one payment, she could have reported this to the court and I would have been held accountable.
If the husband screws up intentionally or accidentally and doesn't pay the premium...
When coverage is required by the court, the above scenario is not an option.
Posted: Sun Jan 03, 2010 01:44 pm Post Subject: insurance
Hi, MARK.....forgot to say that before!! I know OF someone who had their children taken from her (Court Ordered). Her husband divorced her. She was told she had to pay a certain part of the Medical bills, etc. Each child (2 of them) had a Life Insurance policy on them. The mother was Beneficiary....when this 'case' went to court, the Beneficiary was changed to the father. The mother was Court Ordered to pay a certain amount of this, as well. The mother hasn't paid a dime toward anything and her 'whereabouts are unknown'. (Just thinking outloud here..) I don't care WHO you are, why would you STOP providing for your children? From her ACTIONS, anyway, I really don't think she wants to have anything to do with her kids. That's sad.
Posted: Thu Jun 03, 2010 09:20 pm Post Subject: Hold on there SD!
sdchargers fan..... I can answer that question in a way that hopefully will open your mind to possibilities. We have a son by my husband previous marriage who has been incarcerated 6 times since he was 18. He has threatened us. He has been arrested for assault and battery and is currently in jail awaiting sentencing. We have 4 other children that are college gradutuates and fine upstanding citizens. I would say that would be a pretty good reason why a person might not want to leave a person some money? (you never know) Sometimes believe it or not..It is the child through no fault of the parent that chooses to a difficult road which you do not wish to contribute to.that It is possible that the bad guy IS the kid. The last words are 21 year old said to us was I am bigger, tougher and I will take you both down." Thats when we said... "Time for will change!"
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