I live in California. I have been paying for an insurance policy for my wife, now my ex-wife, for 15 years. There is a cash value, I am the beneficiary and I still receive the statements. The policy was not mentioned in the divorce settlement. Can I cash in the policy since I have been paying for it?
Answer
Did you claim this on your "Assets and Debts" form for your divorce? I am assuming you obtained the policy before you divorced? It may be a community asset that was not split during the proceedings, which means it is still eligible for division by the courts if she finds out about it. She could even ask for the whole amount as the penalty for you failing to claim it.
Answer
It is a community asset on which you would have a certain right of reimbursement. You have made the payments but you have also had the benefit of being the insurance beneficiary, so there is some offset. Need look at cash value as of date of separation, your payments and current cash value. If you wanted to calculate the current community interest you could take the cash value as of the date of separation and add a reasonable return on that sum for the community. You would then owe your ex one half of that amount. Not the only way to calculate the division, but one reasonable way. Good Luck, Pat McCrary
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