Domestic Relations

STANDARD LIFE INSURANCE CLAUSE IN MOST DIVORCE JUDGMENTS MAY NOT BE EFFECTIVE

In almost all Michigan divorce judgments, there is a standard statutory clause regarding life insurance beneficiaries. This clause provides that a divorced spouse is revoked as a beneficiary, even if the insured party fails to remove his or her spouse as a named beneficiary on the policy. However, a federal appeals court has held that if the life insurance policy is subject to the Employee Retirement Security Act ("ERISA"), as most company paid group insurance policies are, then the divorced spouse must be specifically removed in writing as a beneficiary of the policy. If not, then the divorced spouse's beneficiary status is not revoked by the Michigan statutory clause in the judgment of divorce and the divorced spouse will be awarded the death benefit. As such, all divorced persons should make sure that his or her divorced spouse has been deleted as a beneficiary on all life insurance policies.

We also provide other articles under the catagory of Divorce on our Newsletter Articles page.

SELECTED NEWSLETTER ARTICLES

Distributed as a free service to our clients!

...to be on our newsletter mailing list, please call or email us with your name and address.

NICHOLS & EBERTH, P.C.
22374 Garrison, Dearborn, MI 48124

Free Initial Consultation

Call Dearborn office at (313) 561-5700 or
Call Birmingham, Northville, Troy office at (248) 952-1700 or
Call us toll free at 888-571-5700 or
Send us an email at email@michiganattorney.com