Is Life Insurance Marital Property?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaCalifornia is a community property state. Whenever the owner of a life insurance policy wants to change the policy the spouse must approve the transaction. We do have provisions for separate property but that would be difficult to implement in the case of life insurance. However, once the provisions of the policy are set it takes both parties to make a change and at the time of death the proceeds will be disbursed according to the policy. This is most critical when a person divorces, remarries and forgets to change the beneficiary of the life insurance.Answered on May 5, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! That will depend on a couple of things - are you living in a State that has community property laws? If so, then the court's decision will most likely hinge upon where the money to pay the premiums came from. If your policy was paid up and you owned it before the marriage, you may get to keep it. If the premiums were paid for out of your communal funds, you may not be so lucky. There are a handful of States that have what is called "the last payment rule" - whoever made the last payment has the ownership of the policy. Check with a family law specialist in your State, and see if they can help you determine the answer. I hope things work out for you. Thanks for asking!Answered on May 5, 2014flag this answer
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