What can I do if my husband is suing me for $2M in damages for a term life insurance policy that I did not disclose during our divorce?

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What can I do if my husband is suing me for $2M in damages for a term life insurance policy that I did not disclose during our divorce?

It was not intentional. However, now he wants either more than half of the policy or a court order to cancel the life insurance policy. We obtained to policy during our divorce; I own the policy and it is on his life. I have maintained the policy with my own funds over the last 5 years. So can my husband win this policy in court or be allowed to cancel it if I am sole the sole owner?

Asked on October 22, 2015 under Family Law, Maryland

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

You write that this is a term life insurance policy. If it's a traditional term policy, it has no cash value: i.e. there is no value or money there for him to get, and not disclosing it during divorce did not damage him. Moreover, term insurance does not benefit the insurered ever--it only pays out on death, and not to the insured (by definition). He does not seem to have grounds to get monetary compensation from you, because the courts award money to compenate for losses, and he has not suffered a loss.
He may be able to force you to cancel the policy, since you did not disclose it during the divorce and therefore it is not incorporated into the divorce decree or settlement. If it was part of the decree or settlement, that would be one thing; but if not, as a general matter, one adult does not have the right to insure another, non-spouse adult without that person's consent.


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