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Life insurance actions to take when divorcing
It is becoming increasingly popular these days for people to take out life insurance policies when they are married and have young children. Normally it would be the breadwinner in the marriage.
How life insurance works
With life insurance policies a person pays a certain amount of money to an insurance company like Momentum, Old Mutual or Sanlam for example. Your life would be insured for a certain amount of money. Before you qualify for life insurance you would need to have a thorough medical examination done. You would need to fill in a questionnaire where questions are asked relating to your health, such as whether you smoke or drink, and if so, how much.
I would say life insurance, if affordable, when planning financially, is just as important as medical aid, particularly when there are young children in the picture. Anybody could die at anytime, and one has to make sure that there will be funds available to support the children in the event of an untimely death.
Change your will on divorce
When couples are married they often appoint each other as the beneficiary of their life insurance policy. In divorce settlement negotiations parties often argue that they be retained as beneficiary of the policy once the divorce is through. A divorce is sometimes settled on the basis that the man for example retains his wife as beneficiary on his life insurance policy until the children are eighteen or self-supporting.
I advise my clients to change their wills as soon as possible when going through a divorce. If you die:
- within three months of your divorce, your ex-spouse will not inherit in terms of your Will unless a contrary intention is indicated.
- But if you die more than three months after your divorce and did not change your Will, your ex-spouse, if named as a beneficiary, will inherit in terms of that Will.
If your ex-spouse is named as beneficiary of your life insurance policy and you get divorced, this should be changed immediately. The ex-spouse may, if you die, inherit a large sum of money from you and spend it on him/ herself and perhaps even their new partner. I would urge people to name their children as beneficiaries of their life insurance, particularly if the children are under eighteen as there is in any event a legal duty to miantain children up until the age of eighteen.
Beneficiaries should have a vested interest
Couples must plan what happens to a life assurance policy covering early death and/ or disability when a relationship fails. You need to have a vested (insurable) interest to take out a policy on the life of another person. This means one person in a couple may take out a policy on the other as they have a vested (financial) interest in each other.
Life assured vs Owner of Policy
A contract of insurance is with the owner of the policy and not the life assured. The life assured has no right to the policy unless the life assured is also the owner. At divorce the owner can continue with the policy as there was insurable interest at inception.
Joint life policies
In a break-up account must be taken of existing life assurance policies and the need for any new policies. If there is a joint life policy, the parties can request for the policy to be split between them. The ownership of a policy can also be ceded from one partner to another.
Risk management
Life insurance policies play a big role in divorce matters and are an important part of financial planning. Many people do not believe in it, but I see it as a form of risk management which, if affordable, is money well spent, and essential when there are young children who are dependant on you.
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Other divorce-related issues
At the beginning
Should I advise my spouse of the impending divorce action?
Should you move out of the matrimonial house prior to divorce?
Psychological issues
Marriage counselling to avoid divorce
Child-related divorce matters
Can a "band-aid baby" save a marriage?
Annexure A
If there are minor children involved, the divorce summons must have an Annexure A attached to it.
Custody of children upon divorce
Jurisdiction in child custody matter (e.g. if child moved to another province)
Joint decisions with respect to minor children
Using Rule 43 to apply for interim custody entitlement
Child custody for the father
Custody granted to unmarried father
When a child won't see his/her father or mother
An unborn child when divorcing
Grandparents & divorce
When Grandparents want custody ahead of parents
Challenging the family advocate report
Child custody post divorce
Application to terminate your ex's parental rights
Splitting up siblings post divorce
Maintenance for children
Child maintenance to what age?
Maintenance & proof of paternity
Maintenance & custody of adopted children
Maintenance for the unborn child
Token or minimal maintenance when parent doesn't work
Impact of inheritance on child maintenance obligations
Maintenance for children over 18
Children suing for maintenance
Arrest after failing to pay maintenance
Abduction & kidnapping of children
Abduction of a minor - Latest case law
The kidnapping of minor children by a parent
The international abduction of children from South Africa.
International divorces, children & overseas issues
Divorce when the children & spouse are overseas
Child contact rights for an overseas parent
When your child and ex move overseas - keeping contact
Other child-divorce matters
Handicapped children & the divorce rate
National register of those unsuited to working with children
Affairs
Affairs and their impact on divorce settlements.
Assets/debt and divorce
The duty to disclose your financials when divorcing.
Insufficent disclosure from a spouse on their assets/liabilities; the section 7 notice remedy (in terms of the Matrimonial Property Act)
Division of the joint estate in the event of a divorce.
- Antenuptial contracts
- When parties cannot agree on the accrual calculation; the court may appointment a referee to assist with the accrual calculation
- When parties cannot decide how to divvy the assets : The court may nominate someone to collect, realise and divide the estate (called a liquidator, receiver or curator).
- How affairs impact the division of assets on divorce
Movable assets - what to take if you move out.
Protection of assets using a trust
Divorce & pension fund assets
Divorce and pension fund payouts
Get your info directly from spouse's pension fund, not indirectly from your spouse.
Undisclosed Pension Interest at divorce results in amendment to divorce order
Pension interest in the accrual calculation, and the related tax liability
State pension fund is unconstitutional
Navy pension payout post-divorce
Property and divorce
Be careful with how you word the clauses about selling the property upon divorce
Should you move out of the matrimonial house prior to divorce?
Property in your spouse's name
When parents have rights to stay at the property you want to sell on divorce.
Life insurance, death & divorce
Life assurance actions you need to take when divorcing
Death in the middle of divorce
Divorce & future expenses
Divorce & Future medical expenses
Marriage (COP vs ANC), cohabition and Universal partnerships
Marriage in community of property
Short definition of a marriage in community of property
Forfeiture of benefits of marriage in community of property - Wijker v Wijker 1993
Kooverjee v Kooverjee
Rights for those in Universal partnerships
- Universal partnership: Asset sharing
- The distribution of assets from the dissolution of universal partnerships
Treatise on the Contract of Partnership: By Pothier ; with the Civil Code and Code of Commerce ... (1854)
Null declaration of customary union
Divorce orders
Vary or rescind a divorce order
Change divorce order without court application
Non-compliance with a divorce order
Spangenberg & Another vs De Waal; Rule 43 order is set aside
Perjury & forgery
Divorce: Forging spouse's signature
Divorce courts
Divorce cases in the Cape High Court
Annulment instead of divorce
What is annulment of a marriage?
What are the grounds for annulment of a marriage?
Quote for Family Lawyer
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