Insurance Law - Wisconsin

Question Details: My ex husband took his life 2 weeks ago, we were divorced 10 months. I was still named the beneficiary because we still own a house together. The policy has been in force more than 2 years so suicide didn't nulify the policy. But the insurance company says the claim goes to the estate since we were divorced. Is that accurate?

Asked 11/4/2009 under Insurance Law | 297 View(s) | More Legal Topics

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Insurance Law Law Answers

In 1999 the Wisconsin Probate Code changed to deal with the issue of estate planning after divorce.  The key is whether a state requires that a party re-designate the beneficiary of the policy after the divorce (or in other words whether the divorce nullifies the designation automatically).  Under the 1999 probate code the judgment of divorce revokes any revocable provisions made by the client in a "governing instrument" which includes a life insurance policy. 

However,  Section 854.15(5) provides for exceptions in which the section 854.15 revocations will be inapplicable.   These exceptions are:  "if the express terms of a governing instrument or court order provide otherwise; if the express terms of a contract relating to the division of the client's and former spouse's property made by them before or after the marriage or the divorce, annulment, or similar event provide otherwise; if the divorce, annulment, or similar event is nullified; if the client and former spouse remarry each other; or if there is a finding of the decedent's contrary intent, which may be construed using extrinsic evidence."

How your divorce decree and asset distribution agreement are written will be key in determining the answer to this question.  You need to bring all the supporting documents to an attorney to review in light of the above for an accurate answer to your question. 

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