Monday, April 12, 2010

Are Private Disability Insurance Policy Payments Marital Property?

Our Second District Court of Appeals looked at that issue in the Gibbons case decided last month. See Gibbons v. Gibbons, 10 So. 3d 127, (Fla. 2d DCA 2010). In that case the Husband who had been an attorney became disabled prior to the filing of the divorce action. As a result of his disability he received payments from 3 disability insurance policies he purchased and paid for during the marriage. One of the policies ended payments when he reached the age of 65 while the other 2 policies did not. The 2 other policies continued payment with no set end date as long as the Husband remained disabled. The Wife argued at trial that since the Husband would be receiving payment from the 2 policies after he reached the age of 65 the payments were akin to retirement payments and therefore subject to equitable distribution. The lower agreed with her and awarded her 1/2 the value of the 2 policies in question.

The appellate court disagreed and reversed the trial court's decision. The appellate court held that there was no evidence that the payments made to the Husband after age 65 contained a retirement component and were subject to the condition that he remained disabled; therefore the payments was the Husband's separate income and not subject to division.

Tuesday, April 6, 2010

Proposed Budget Cuts for Clerk of Court

I recently received a notice from Ken Burke, the Clerk of Court for Pinellas County, advising of a bill pending in the Florida Legislature to dramatically cut funding to the Clerks' offices. Though I do not remember the precise amount of the budget cut Mr. Burke did advise that last year due to budget cuts the Clerk's office laid off approximately 28 people and if this bill passes the cuts this year will have to be twice as much. I recognize the financial constraints we are all under these days including our government. Cuts seem to be the foregone conclusion. Though it is clearly sad for the employees who may get a pink slip the public using the civil court system will also suffer a great deal with delays and inefficiencies due to the lay offs. If there is less money the Clerk will have to re-prioritize where employees work. There are mandates that ensure the criminal court system will be funded first. Therefore the primary place the pain of the budget cuts will be felt is on the civil side. It will likely mean significant delays in information processing.