If I have a life insurance policy with my wife as beneficiary but also have a judgement against me, if I die can the judgement be enforced against the insurance proceeds?

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If I have a life insurance policy with my wife as beneficiary but also have a judgement against me, if I die can the judgement be enforced against the insurance proceeds?

Asked on October 11, 2012 under Bankruptcy Law, New Jersey

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the judgment that is presently against you arose for conduct during your marriage then under the laws of all states in this country the money that you wife may receive under your insurance policy where she is a beneficiary could be subject to levy. The reason is that under the laws of all states in this country the debts of one spouse incurred during the marriage can be levied upon from marital assets.

If you pass and your spouse receives the insurance premiums form your life insurance policy, the judgmenet creditor can very well levy upon the money naming her as a beneficiary for payment.


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