24/7 call for a free consultation 888-504-2746

AS SEEN ON

Blog

Can I stop him from dropping the life insurance policies?

July 1, 2018

It’s a sad fact of life that the phrase “insurance revenge” is a real term used in divorce proceedings. This type of revenge can affect divorce proceedings all over the country. Insurance revenge occurs when the primary holder of the insurance drops the divorcing spouse from the couple’s life insurance policy. This also occurs with auto insurance, health insurance, and other insurance policies; that said, it most commonly happens with life insurance. In most cases, the primary holder of the insurance is the husband.

There are some states that recognize these policy changes are a result of passion rather than rational decision-making. These states have taken steps to prevent the occurrence of insurance revenge when a couple divorces.

Stopping Your Spouse From Dropping Your Insurance Policy or Policies

After the beginning of a divorce proceeding, it’s common for tempers to run high. Both spouses might act in irrational and harmful ways toward the other. Dropping a spouse from important insurance policies is a common form of revenge, but divorce attorneys and courts alike have begun taking steps to address this. To stop insurance revenge before it starts, many people will have part of the divorce agreement outline a period of time that life and health insurance policies must be maintained following the settlement.

It’s also common for divorcing couples to act without the realization that any revenge tactics affect the children in the household. If a man drops a family plan for health insurance, this will affect the children on the plan in addition to his wife. A similar occurrence often happens regarding the life insurance policies for a couple. It’s common for the husband to drop the children as beneficiaries when he drops his former wife as a beneficiary. To keep this type of confusing from happening, many divorcing couples will make the children of their union irrevocable beneficiaries of life insurance policies. This is a way of ensuring the children remain covered no matter whether the former spouse is covered or not.

For the most part, these acts are committed voluntarily so that both spouses can make decisions that are best for their families. There are some circumstances where the couple has enough animosity between them to inspire the occurrence of insurance revenge to begin with. When this happens, it’s hard to have both spouses agree about stipulations in the divorce agreement that preserve the current insurance plans. It’s possible that divorce attorneys on both sides can bring the couple to an agreement, which is the most important step to create stipulations that ensure insurance coverage continues.

States That Have Restricting Divorce Laws to Prevent Insurance Revenge

Insurance revenge occurs commonly enough that some state legislatures have stepped in. There are a number of states that enact laws preventing spouses from making changes to insurance policies for vengeful purposes. The establishment of legal protections is a way for these states to take concerns about insurance revenge out of divorce proceedings. It’s also a way to ensure that there’s a fairer overall settlement.

In California, there are multiple laws protecting divorcing spouses from suffering insurance abuses. If a couple files for divorce, each party will automatically have a temporary restraining order enacted against the other party. This prevents any insurance policies from being canceled. When this protection order occurs, the main insurance policies included are life, health, and auto policies.

Because of the temporary restraining order, the state of California only outlines two conditions that allow a person to drop their ex-spouse from any insurance policy. The first is that the spouse gets written consent from their former partner. The second is that the spouse gets permission from the court to drop the policy. If the insurance policy is dropped under any other condition, the spouse will be subject to charges for contempt of court. This even includes situations in which the policy lapses because of the spouse’s forgetfulness.

Even though this law is in place, there are certain individuals who don’t mind risking the charges for contempt of court. They will cancel the insurance policies of their ex-spouses regardless. To keep this from happening, it’s recommended that a “notice of adverse interest” be sent to each of the insurance companies in question. This notification informs the insurance company that the policy holder is undergoing a divorce, and that the insurance company cannot allow the policy to change regardless of requests made by the policy holder. This notice has a specification that the law protects the spouse from having their policy canceled by the policy holder during the divorce proceeding.

Call Now!