Account for All Policies in the Divorce Decree

Including in the divorce decree distinct provisions concerning all insurance policies on an itemized basis, policy by policy, can minimize the confusion that may otherwise result once the divorce is final. This may also spare the parties later negotiations at times when it may be even more difficult (for practical as well as emotional reasons) to negotiate their differences. Such provisions in a divorce decree must clearly reflect the intent of the parties and must be easily understood by third parties.

An attorney should be consulted to make certain that all conditions are satisfied for making any changes in the insurance policies so that they conform to the final divorce decree. This will help to obviate confusion and added expense, particularly if the insured person should pass away during the period of the policy. It can also serve as a means of protecting beneficiaries against hostile actions seeking to deny them access to policy proceeds in instances where ownership interests should have been transferred or shared. However, some transfers of ownership may impact the ability to continue the policy on the terms on which it was originally written; the ability to understand the policy and to negotiate with the insurance company may prove important here as well.