life insurance proceeds - marital property?

[JAKES_MOM]

What is the name of your state? PA

We are about to start the equitable distribution process. I have a question about the proceeds of a life insurance policy. Our daughter was disabled and had been turned down for life insurance several times. However, by some mistake in HR, she was covered at the time of her death last year. My husband, without my knowledge, had only his name as beneficiary to the policy. He carried all of our medical, dental, etc. and Life insurance on the kids. Even if I wanted to, I probably could not have gotten my own insurance on our daughter.

Since the premiums were paid by marital income and the proceeds were gotten before we separated, is that considered marital property?

[djohnson]

If this was carried through his work and he was the only beneficiary, then it's his money. However, depending on the timing of everything happening. If he took the money and made it comingled funds, then you may be entitled to a portion as the judge deems fit. But calling it life insurance proceeds probably isn't your best bet. Again a lot can depends on specifics and timing.

[JAKES_MOM]

My lawyer is telling me it is marital but my husband is indicating that it's not marital (which I assume is what his lawyer is telling him).

What are you basing your opinion on? Is there a law section that I can look at? The money is currently in a separate account.

[djohnson]

I would listen to my lawyer. I don't know the laws of your state and your husband is telling you what he wants you to believe. When you say it is a separate account, is that account in his name only? Why would you put it in just his name? Once the funds are paid out, unless under rare circumstances where it's put in an account as a trust and all the funds stay intact, it's no longer considered a life insurance payout. Just like if you owned a home before marriage in only your name and sold it and put the funds in your joint account. It's no longer your asset before marriage, it becomes joint.

[BelizeBreeze]

The proceeds are marital property. Your husband cannot convert them by placing marital funds into a separate account only he controls.

[VeronicaGia]

Originally Posted by JAKES_MOM

What is the name of your state? PA

We are about to start the equitable distribution process. I have a question about the proceeds of a life insurance policy. Our daughter was disabled and had been turned down for life insurance several times. However, by some mistake in HR, she was covered at the time of her death last year. My husband, without my knowledge, had only his name as beneficiary to the policy. He carried all of our medical, dental, etc. and Life insurance on the kids. Even if I wanted to, I probably could not have gotten my own insurance on our daughter.

Since the premiums were paid by marital income and the proceeds were gotten before we separated, is that considered marital property?

I would wonder if the premiums were paid by marital income. Since the payments were never in his hand (if they were deducted directly from his paycheck), then how is it marital property?

However, I have no idea, and would love to know the outcome of your case.

[JAKES_MOM]

The Life insurance company created the account and simply sent a coupon/checkbook against that account in my husband's name only since he was the only one listed as the beneficiary. The premiums were deducted directly from his paycheck (but so is his 401(k) which is marital).

[djohnson]

I think you have a case, listen to your attorney and not your future ex. He is trying to intimidate you and make you believe it so you don't even ask for it.

[BelizeBreeze]

Originally Posted by VeronicaGia

I would wonder if the premiums were paid by marital income. Since the payments were never in his hand (if they were deducted directly from his paycheck), then how is it marital property?

However, I have no idea, and would love to know the outcome of your case.

Income for the joint pleasure of the partners is considered marital property. His marital income was used to pay for the premiums .