I have a two part question. 1.) My stbx was the sole named policyholder of a life insurance policy on his father and he listed himself as the beneficiary and collected the proceeds upon his passing a couple years ago. He put the proceeds in the bank and all of it is still there. My first question is, since my husband was the policy owner and not my father-in-law, would the proceeds be considered an inheritance or could it technically be considered as marital or divisible property since we are married and my husband owned the policy?
2.) My 2nd question is can the proceeds be considered in calculating child support or can a percentage of the lump sum amount be considered for child support?
Thank you!
(1) Generally life insurance proceeds are treated as an inheritance which is the separate property of the receiving spouse. However, you may have an argument that because your husband was the policyholder, particularly if he was the one paying the premiums each month or each year, that it was more of an investment (since marital funds were used to purchase and maintain the policy) and it should be considered marital property.
(2) The life insurance proceeds that were received a few years ago would not be considered income for child support purposes.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
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