Monday, October 26, 2009
Are life insurance proceeds recieved after action filed marital?
Florida's 4th District Court of Appeals looked at this issue in Ross v. Ross decided on October 7, 2009. The parties in this case were married for six (6) years before suit was filed. The Husband and his brother had a lawn business before and during the marriage. Both the Husband and his brother owned "key man" life insurance policies naming the other as beneficiary. After suit was filed but before the divorce case was tried, the brother died and the Husband received over $1 million dollars as beneficiary of his brother's life insurance policy. The Wife argued that the proceeds were marital and subject to equitable distribution. The lower court agreed but the appellate court said no. The court reasoned that since there was no asset prior to suit being filed and the event that caused the expectancy to become an actual interest occurred after suit was filed, the proceeds were non-marital.
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