Is Life Insurance Separate or Marital Property In Divorce?
As a general rule, a life insurance policy in existence at the time of classification of property is classified according to the general rules applicable to any other item of property: To the extent the premiums were paid with marital funds, the policy is marital property; to the extent the premiums were paid with separate property, the policy is separate property. Therefore, the policy itself can have both separate and marital components, e.g.:
But see La Barre v. La Barre, 251 A.D.2d 1008, 674 N.Y.S.2d 235 (1998) (life insurance was separate property where there was no evidence as to how many premiums were paid with marital funds).
Resources & Tools
PROTECTION AFTER DIVORCE -- COBRA, the Consolidated Omnibus Budget Reconciliation Act, protects ex-spouses even after one of them remarries, for a fixed period of time, as well as employees who lose their positions. COBRA establishes a time line for picking up coverage (which must be religiously observed), and it is very expensive.
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