The trainwreck of a divorce...

I’m a little confused . My friend had a $2 mil 30 yr level term policy . For reasons his wife was owner and beneficiary. When they divorced he tried to cancel policy but company refused as she was the owner . No court can stop her from receiving the proceeds or cancel the policy unless it’s in the divorce decree .I’m many divorces the courts can force someone to keep the policy with the ex as beneficiary correct ?

Depends on state. But Maybe your friends divorce decree allowed for her to continue to own that policy. Good divorce lawyers have that worked out like any other assets. But many people going through divorce are broke & take the default divorce decree language
 
I’m a little confused . My friend had a $2 mil 30 yr level term policy . For reasons his wife was owner and beneficiary. When they divorced he tried to cancel policy but company refused as she was the owner . No court can stop her from receiving the proceeds or cancel the policy unless it’s in the divorce decree .I’m many divorces the courts can force someone to keep the policy with the ex as beneficiary correct ?
Correct.

But we didn't get the ownership structure here.
 
I'm looking forward to meeting with my law professor probably later this week... and perhaps one day doing a webinar or podcast with him and exploring this area in planning and what agents and advisors can do to help their clients... and protect themselves if clients won't move forward.

He's mentioned this to me many times that divorce is the #1 cause of wealth erosion. Of course, only Jeff Bezos can get a divorce and remain one of the wealthiest men in the world. Most business owners and probably policyowners... just don't know... just as I don't fully know.
 
Quick follow-up...

Decree was received. She will not be receiving any funds, but her children will, as they are listed as contingent.

She was paying, but not listed as the owner... to remove any confusion.

Funny... she thought the policy was only for around 10K, watching her eyes light up when I disclosed it was for about 12.5 times that amount was priceless. :biggrin:
 
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