What is the name of your state (only U.S. law)? Louisiana
We are coming up on a community property trial and have never been able to clarify the question of ownership of my new husband's life insurance policies. He divorced his ex-wife six years ago, but the community property settlement is just now finally coming to a head. He owns life insurance policies that are in his name and on his life, he has no minor children of the old marriage, and he has no alimony owed to his ex. He is disabled, and has been disabled since 1979. There are six policies; the first policy was purchased in 1978, before he became disabled; then he became disabled approximately 2 months afterward. As soon as he was declared disabled, the insurance premiums were waived, except for one policy on which a premium of about $32 is paid every month. After he divorced his "ex," my husband has continued paying this premium monthly. The premiums for the other five policies were all waived from their inception. The Louisiana "community" of acquets and gains existing between him and his "ex" paid, at most, two months of insurance policy premiums in the past nearly 30 years on all but the one policy with the $32 premium; the rest were waived due to HIS disability. There is considerable debt on all six policies, due to loans against the policies taken out by him and his ex-wife for the benefit of both of them during the course of the marriage.
Now his ex-wife wants half of the cash value of the policies.
He contends that she should owe him for half of the debt on the policies, because she received half of the monies that were borrowed against them, and that the policies with the waived premiums belong to him because she did not contribute anything toward their purchase except for possibly contributing half of two months' premiums on one policy.
Who owns these insurance policies? Does the 'ex' have a right to half of their cash value? Does the 'ex' owe for half of the debt on the policies?
We are coming up on a community property trial and have never been able to clarify the question of ownership of my new husband's life insurance policies. He divorced his ex-wife six years ago, but the community property settlement is just now finally coming to a head. He owns life insurance policies that are in his name and on his life, he has no minor children of the old marriage, and he has no alimony owed to his ex. He is disabled, and has been disabled since 1979. There are six policies; the first policy was purchased in 1978, before he became disabled; then he became disabled approximately 2 months afterward. As soon as he was declared disabled, the insurance premiums were waived, except for one policy on which a premium of about $32 is paid every month. After he divorced his "ex," my husband has continued paying this premium monthly. The premiums for the other five policies were all waived from their inception. The Louisiana "community" of acquets and gains existing between him and his "ex" paid, at most, two months of insurance policy premiums in the past nearly 30 years on all but the one policy with the $32 premium; the rest were waived due to HIS disability. There is considerable debt on all six policies, due to loans against the policies taken out by him and his ex-wife for the benefit of both of them during the course of the marriage.
Now his ex-wife wants half of the cash value of the policies.
He contends that she should owe him for half of the debt on the policies, because she received half of the monies that were borrowed against them, and that the policies with the waived premiums belong to him because she did not contribute anything toward their purchase except for possibly contributing half of two months' premiums on one policy.
Who owns these insurance policies? Does the 'ex' have a right to half of their cash value? Does the 'ex' owe for half of the debt on the policies?