Equitable Distribution - Term Life Insurance Payout

My first husband and I have two daughters. After our divorce (2006), I remarried (2007). Since 2004, I owned a term life insurance policy on first husband and paid premiums from child support. From 2004 - 2015, I received child support from my first husband and deposited support into my separate bank account. He was killed in September 2015. In October 2015, I received the distribution. The life insurance application indicates policy is to replace lost income, fund mortgage and college tuition for our two daughters.

These funds allowed my girls and I to permanently leave an abusive marriage. My second husband and I separated in 1/2016, divorced in 4/2017 and verdict to our equitable distribution case was finally given today. Judge indicated child support I received from my first husband is marital property (of the second marriage). The judge also indicated the life insurance was marital property and awarded recent ex-husband a lump sum payout. My recent ex-husband had absolutely nothing to do with this policy and payments were traced to the exact child support payment from first husband which funded the last premium payment prior to his death.

I was also not awarded post separation support or alimony and I was a dependent spouse. A lump sum award will significantly jeopardize my daughters future college education and our funds for daily living expenses. I am unemployed however seeking employment ,compared to my exspouse who earns $130k+ annually and who chooses to delay his social security withdrawals (we’re 18 yrs apart).

This ruling seems to contradict absolutely everything I have researched regarding “marital property”.

I want to appeal this ruling. Thoughts?

Yes, you can appeal the judgment. Note that you have 30 days from the date the order was filed to file your notice of appeal. After 30 days has passed, you will not longer be able to appeal the judgment.


Anna Ayscue

Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest

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