Equitable Distribution and Life Insurance Policies

No matter how amiable or difficult your divorce is, you must sit down and think about your assets together or with an attorney in order to become familiar with the laws of equitable distribution. While most people may immediately think about distribution in terms of property and custody of the children, not everyone realizes that life insurance policies are important and considered part of a couple's assets.

Depending on what state you call home, there are different measures to divide up life insurance policies. Some states call for equitable distribution of the policy, in which the benefits would be split equally between both parties. In other states you may have to demand an equal share of the insurance, rather than assuming that the court will grant it to you.

These states, called community property states, make it more difficult to determine who gets what portion of life insurance. The judge will look at the circumstances surrounding the insurance policy, such as who took the policy out and whether it was opened before or during the marriage. Based on the situation that the insurance policy was opened, the judge will decide who will benefit from it in a divorce.

To learn how life insurance policies can be affected by equitable distribution, consult with a family law attorney near you as soon as possible.