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NE Court Denies Post-Divorce Request for Life Insurance to Secure Alimony

By Janet Langjahr

Well-off Nebraska couple divorce. Husband ordered to pay substantial alimony ($12,500 per month for 106 months) plus substantial child support ($5,000 per month).

Husband purchased a $1 million life insurance policy for the benefit of his children, although it is not clear whether that was court-ordered. It appears that no other life insurance was ordered by the Court in the divorce.

It is common for courts to order life insurance, where it is obtainable, to secure both child support and alimony obligations.

After the divorce was final, Wife reportedly sought to purchase an additional $1 million life insurance policy on her ex-husband’s life, but Husband refused to submit to a required physical examination. So Wife sought a court order for the additional insurance.

But the Court rejected her claim.

Under Nebraska law, it is illegal to take out a policy on another person’s life without their consent unless the person whose life is insured will own the policy. It is against public policy, because the purchasing beneficiary would have an interest in the insured’s death.

Once the divorce is final, the law applies to ex-spouses the same as to anyone else.

The Court failed to order insurance to secure the alimony obligation at the time of the divorce because it presumably felt that Wife had adequate resources to carry on in the event of Husband’s death. After all, her net worth is reportedly over $4 million.

Read more in this Omaha World-Herald article: Nebraska court says no life insurance policy for ex-wife.

Full post as published by Florida Divorce - Child Custody - Domestic Abuse Law on June 29, 2008 (boomark / email).