Bifurcation and Insurance California

[Fshort]

Our bifurcated divorce was final February 14th of this year. My ex signed a paper in agreement to be taken off my health insurance at work and to be taken off as the beneficiary of my life insurance.

My HR department won't accept it! They say they need a final judgement for that. In the meantime, she's dragging this on and on, hoping I'll die ( I have major medical conditions) and she's the beneficiary on my insurance. I want to leave it to my kids and set up a trust.

Please advise. How can I get my employer to comply?

[moburkes]

Give them a copy of the judgment. They will make all changes retroactive to that official date.

[Fshort]

I guess I wasn't clear enough...

HR won't accept the bifurcation judgement along with her signed agreement to be taken off.

They claim they can only change it with a final judgement.

This doesn't seem right.

[cbg]

Legally, however, it is.

Federal law determines when a dependent can LEGALLY be removed from a group health insurance plan. A final judgement IS needed. Your HR department is legally correct.

[moburkes]

Thanks, cbg. I don't get why people don't understand that there are LAWS. Also, OP, you were told about this when you first signed up for the insurance.

[Fshort]

Thanks cbg: I did finally find it in the Family Law code and yes, final judgement is needed.


Mo- I understand there are laws...I don't always understand what the laws are which is why I ask.

I started with the company 10 years ago and signed up for insurance. At the time I wasn't thinking about divorce or death so as Steve Martin would say, " EXXcuuuse ME!"

[moburkes]

I said that to say - they aren't doing this to give you a hard time. They have enough to do that to make up some rules about insurance. Its not like they're making money off the premiums so they want her on their to improve their bottom lines.

[Fshort]

It's not the health insurance that is my main concern - it's the life insurance policy. If I die before this divorce is final, then she gets the money (one mil.) and my kids will never see it.

I want to protect THEIR interests.

Believe me, she burns through money like nothing you've ever seen and she's been diagnosed as having a narcissistic personality disorder.

I have had Lupus, a kidney transplant, heart attack, CHF, skin cancer and am having more problems. She's delaying this simple divorce (we have a house, 401K and two kids), for 20 months now, driving me mad and hoping I'll just kick it.

I can understand the law wanting her to be able to continue health insurance, even though she has her own with her employer, but not being able to change the beneficiary on my life insurance is crazy. Especially if all I want to do is set it up to go into a trust for my children.

Now do you understand my angst?

[cbg]

You should be able to change the beneficiary on the life insurance policy before the final judgement UNLESS there is a state law that says otherwise. I know some states have such a law; I do not know if CA is one of them.

If you have her written consent (and it must be on the form provided to you by your HR department) you can remove her, before the final judgement, as beneficiary from any 401k policy that may exist. However, again under Federal law, it can ONLY be done if you have her written consent on the proper form; otherwise as long as the divorce is not final she MUST be the 401k beneficiary.

BTW, I don't know of any state that requires that she be the SOLE beneficiary of the life insurance; there should be no reason you cannot split the proceeds between she and your children.

[moburkes]

I agree, cbg. You can name 100 beneficiaries, if that's what you wanted to do. You can also name beneficiaries, with, say 10% to My Current Spouse, 40% to Child A, to be held in "Such and such Trust". Ask your local insurance agent or a rep at HR or their insurance company about the wording. I've never sold a policy set up with a trust as beneficiary.

Also, get a 2nd copy of the form. Fill it out without her as beneficiary. Be prepared to literally drop it in the mail in the day of the divorce.

[Betty3]

I thought on group life ins. the insured/employee could name/change the beneficiary at any time. You could where I worked. A final judgment (re a divorce) was not required either to change bene from wife to someone else. (could be changed to more than one person if desired) Unless maybe it is state law in this case or some provision in the contract re spouse as bene until divorced.

[moburkes]

This is probably contract or state law. Too many disgruntled spouses.

[cbg]

I know of at least one state where state law requires that a spouse receive at least 50% of any life insurance proceeds.

For the most part you are correct. But I can't completely rule out the possibility that state law exists which would require that the divorce be final first.