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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DIVORCE AND INSURANCE -- Upon divorce, the responsibility and expense of maintaining appropriate policies must be taken into account. Divorce may shift the responsibility for the maintenance of a variety of insurances, including health, auto, homeowner, and property.
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