Life insurance policies are typically considered marital assets if acquired during marriage
A life insurance policy obtained during marriage is generally classified as a marital property and can be subject to division during divorce proceedings. The policy’s cash value, premium payments, and beneficiary designations may all be impacted during asset division.
Several factors determine how a life insurance policy is handled during divorce:
- When the policy was purchased (before or during marriage)
- Who has been paying the premiums
- The type of policy (term vs whole life insurance)
- The policy’s current cash value
- Whether the policy was part of employment benefits
It’s crucial to consult with a divorce mediator or certified divorce financial analyst to understand your rights and obligations regarding life insurance policies during marriage dissolution.