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).
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GOLDEN YEARS -- Practically everyone who lives long enough needs in-home care, assisted living support, and/or skilled nursing care. Very few people have sufficient assets to cover the cost of extended skilled nursing. Long-term care insurance, purchased when the beneficiary is young, meets the need, offering the coverage at lower premiums.
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