Virginia Info
Virginia Divorce
Start Your Divorce
Find Professionals
Virginia Articles
Divorce Facts
Divorce Grounds
Residency
Divorce Laws
Mediation/Counseling
Divorce Process
Legal Separation
Annulments
Property Division
Alimony
Child Custody
Child Support
Divorce Forms
Process Service
Grandparent Rights
Virginia Articles
Agreements
Attorney Relationship
Custody & Visitation
Child Support
Divorce/General
Financial Planning
Mediation
Parenting
Property Division
Spousal Support
Info Categories
Contemplating Divorce
Children & Divorce
Divorce, Dollars & Debt
Divorce Laws
Divorce Process
Divorce Negotiation
More Information
Articles Checklists Research Center Cases of Interest Dictionary Encyclopedia Encyclopedia (pop-up) Blogs
For Professionals
Advertise With Us Free Network Page Join Our Network Submit Articles Sign In Network Sites
|
Dividing Life Insurance and Survivor Benefits
Until the 1992 legislative session, our Virginia Courts did not, apparently, have authority to render awards in the nature of requiring a spouse to keep his or her life insurance in force for the benefit of his or her spouse (and/or children); and/or to order spouses to acquire new life insurance coverage for the benefit of the spouses and/or children.(20) Since "survivor's benefits" are in the nature of life insurance, our Virginia Courts also did not have authority to order such relief (unless a settlement Agreement were involved). Two new statutory provisions have changed two-thirds of this life insurance picture. That is, (only) with respect to divorce suits filed after July 1, 1992, our Courts now have the authority to order a party to designate his or her spouse as the irrevocable beneficiary of the entirety or a portion of his or her annuity survivor benefit plan -- but not to order the party to maintain an existing policy or to purchase a new life insurance policy for the benefit of his or her spouse. In addition, with respect to child support hearings conducted or at least those emanating from petitions filed after July 1, 1992, our Courts now have authority to order a party to maintain an existing life insurance policy in effect, and to designate his or her children as beneficiaries under a portion or the entirety of the policy -- as long as the party has a statutory duty to pay child support for those children. It is true that these provisions allow only the most expensive form of life insurance coverage to be required for a spouse, and that the child coverage provision might well encourage recalcitrant parents to cancel existing policies before a Court denies them that opportunity. It should be noted, though, that, since it cannot be questioned that, often, spouses and the children do have "insurable interests" in the continued presence on Earth of the spouse possessed of the life insurance or survivor's benefits (21) -- even prior to this time, often provisions for continuation of (some portions of) life insurance and/or survivor's benefits were included in settlement Agreements. Because of the inability of our Courts to order such relief, though, typically, the attendant costs were in effect "traded" for something else in the process of negotiating the Agreement. The ironic "loopholes" in the new provisions have "ensured" continuation of this practice. (20) A probably-questionable Spring 1990 decision of the Chief Judge of the Fairfax Circuit Court ruled that a trial court did have authority to order a spouse to keep his current life insurance coverage in effect. Care should be taken to distinguish "whole life" and other policies with "cash value," however. Subsequent to enactment of the Virginia "equitable distribution" provisions, there never has been any doubt that, if and to the extent that life insurance policies have "cash value" earned during the marital coverture, they were (presumptively) marital property subject to equitable distribution consideration. (21) E.g., unless otherwise specifically provided in a settlement Agreement, child and spousal support rights terminate upon death, as pension-share rights usually do, by virtue of company or agency or "Plan" provisions, upon death of the pensioner.
Navigate:
Home
States
Virginia Divorce Source
Virginia Divorce Articles, News and Resources
Property Division
Dividing Life Insurance and Survivor Benefits
A person in Virginia can file for a divorce from bed and board for the reasons of cruelty, reasonable apprehension of bodily hurt, or willful desertion or abandonment.
|
![]() Find Professionals
Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
|
Terms & Conditions | Privacy | Cookie Policy | Do Not Sell My Information
Established in 1996
Copyright© 1996-. All rights reserved by MH Sub I, LLC dba 3StepDivorce.