Insurance refund check was issued to me after divorce was final

[ewells1014]

My divorce was final in March of this year. My ex-husband decided to switch homeowners insurance companies, but the policy renewal had already been paid from escrow. The insurance company has issued a refund check, but it has been made payable only to me. He was on the policy, but I was the primary since I was the one who set everything up back in 2018 when we were still married. This is not a two party check. From a legal standpoint, do I have to give him half of this money?

I live in Colbert County, Alabama.

 

[Just Blue]

My divorce was final in March of this year. My ex-husband decided to switch homeowners insurance companies, but the policy renewal had already been paid from escrow. The insurance company has issued a refund check, but it has been made payable only to me. He was on the policy, but I was the primary since I was the one who set everything up back in 2018 when we were still married. This is not a two party check. From a legal standpoint, do I have to give him half of this money?

I live in Colbert County, Alabama.

Did you have an attorney for your divorce?

 

[Zigner]

Give him half...yeesh.

 

[ewells1014]

Did you have an attorney for your divorce?

He did, but I did not. That's why I'm here, lol I have looked through our settlement agreement, and I don't see anything relating to this. The only thing relating to the house has to do with him keeping the house and making the mortgage payments.

 

[ewells1014]

Give him half...yeesh.

I had another reply typed out, but it sounded kind of snappish and mean, lol I took a very big financial hit in the interest of getting out of a very abusive marriage. I did not want or take any type of financial support whether it be alimony or child support. This is a sizable amount of money, and will come in very handy for me right now. This isn't really an ethical/moral question, but a legal one. I have no problem giving him half, but if I can keep the whole amount I would prefer to.

 

[PayrollHRGuy]

If he was awarded the house then some portion of the money is his. The exact percentage depends on timing and your specific divorce decree.

 

[ewells1014]

T

If he was awarded the house then some portion of the money is his. The exact percentage depends on timing and your specific divorce decree.

Thank you!

 

[adjusterjack]

This isn't really an ethical/moral question, but a legal one.

Legally, you owe him half. Maybe even all of it since he got to keep the house. Had it been a claim check for damage yet to be repaired he would have been entitled to all of it in order to repair the house.

There is no primary or secondary on an insurance policy. There is only "Named Insureds" who are equal parties to the contract regardless of the order in which they are named.

The insurance company should have made the check payable to both of you. That mistake doesn't change the fact that you are both equally entitled to any proceeds of the policy in the absence of any agreement to the contrary.

If you want to keep it, keep it. That's up to you.

 

[ewells1014]

Legally, you owe him half. Maybe even all of it since he got to keep the house. Had it been a claim check for damage yet to be repaired he would have been entitled to all of it in order to repair the house.

There is no primary or secondary on an insurance policy. There is only "Named Insureds" who are equal parties to the contract regardless of the order in which they are named.

The insurance company should have made the check payable to both of you. That mistake doesn't change the fact that you are both equally entitled to any proceeds of the policy in the absence of any agreement to the contrary.

If you want to keep it, keep it. That's up to you.

Thank you! I'm just not sure how it works as far as the divorce being final now. If this is something we had agreed upon while we were still married and working on our settlement agreement it would be a different story. But at this point, the divorce is final and the insurance company screwed up. A couple months ago when he decided to change companies, I had to fill out the paperwork and E sign the documents to get my name removed from the policy. that's when they told me that I was the primary on the policy. I absolutely want to do the right thing, because I do not want to get in trouble legally. But let's be realistic here… This is my ex-husband, and I stop feeling obligated to do him any favors the day our divorce was final. ‍

 

[LdiJ]

Thank you! I'm just not sure how it works as far as the divorce being final now. If this is something we had agreed upon while we were still married and working on our settlement agreement it would be a different story. But at this point, the divorce is final and the insurance company screwed up. A couple months ago when he decided to change companies, I had to fill out the paperwork and E sign the documents to get my name removed from the policy. that's when they told me that I was the primary on the policy. I absolutely want to do the right thing, because I do not want to get in trouble legally. But let's be realistic here… This is my ex-husband, and I stop feeling obligated to do him any favors the day our divorce was final. ‍♀

Was the replacement policy issued while you were still together, or issued after you split up? I would say that if the replacement insurance policy was paid for from marital funds that you are entitled to at least half of the money. However, if the replacement insurance policy was paid for with his own separate money, then he very well may be entitled to the entire refund.

Did you go through a closing to remove you from the mortgage? Did he have to refinance to take you off the mortgage? If so, you should take a look at the closing paperwork to see if it was dealt with there. If he did not refinance to take you off, then you messed up by not requiring that as part of the settlement. You remain obligated for a mortgage for a home you no longer own. That is a problem.

 

[ewells1014]

Was the replacement policy issued while you were still together, or issued after you split up? I would say that if the replacement insurance policy was paid for from marital funds that you are entitled to at least half of the money. However, if the replacement insurance policy was paid for with his own separate money, then he very well may be entitled to the entire refund.

Did you go through a closing to remove you from the mortgage? Did he have to refinance to take you off the mortgage? If so, you should take a look at the closing paperwork to see if it was dealt with there. If he did not refinance to take you off, then you messed up by not requiring that as part of the settlement. You remain obligated for a mortgage for a home you no longer own. That is a problem.

 

[ewells1014]

The replacement policy was issued after the divorce was final. But the original policy (for which the refund was issued) was taken out when we were still married.
I was never on the mortgage--only the deed, and I signed paperwork to remove my name from it during the divorce proceedings.

 

[LdiJ]

The replacement policy was issued after the divorce was final. But the original policy (for which the refund was issued) was taken out when we were still married.
I was never on the mortgage--only the deed, and I signed paperwork to remove my name from it during the divorce proceedings.

I understand that the original policy was taken out while you were married. However, had he not changed insurance companies the insurance for the house he now solely owns would have been paid for and you would not have been entitled to any reimbursment from that. He has now paid the insurance out of separate funds, but the money that was to reimburse him for that was given to you. Unfortunately it may be that he would be entitled to all of the money. Therefore I think it would be dangerous not to give him at least half of it, and maybe even all of it. He has to know that there is a refund coming and will therefore eventually find out that you received it.

 

[Zigner]

But at this point, the divorce is final and the insurance company screwed up.

That's EXACTLY the point. It was a mistake. The adult, mature, and business-like thing to do is to give him half and be done with it. Or, perhaps you would like to keep your lives intertwined even longer?

 

[PayrollHRGuy]

The replacement policy was issued after the divorce was final. But the original policy (for which the refund was issued) was taken out when we were still married.
I was never on the mortgage--only the deed, and I signed paperwork to remove my name from it during the divorce proceedings.

So it was clearly an error on the part of the insurance carrier. Give him the money now or when he sues.