NJSBA Family Law Section

Greetings,

Can anyone recommend an alternate methodology for securing a PERS life insurance benefit for the dependent spouse after divorce.  I represent the dependent spouse/wife.  Husband sole life insurance benefits are those through his former employment with the State.  This life insurance benefit reverts to husband's estate after divorce.  A former spouse cannot be the named beneficiary of this benefit unless a post-divorce beneficiary designation change form is filed with the State naming the former spouse as the beneficiary.  Of course, the down side to this method is that the Husband changes the beneficiary designation again later without our knowledge, leaving my client without any benefits.  The life insurance plan does permit policy assignments, which would make my client the owner (so to speak) of the benefits, and which would irrevocably designate her as the beneficiary. 

Does anyone have an experience with these types of policy assignments?

I was thinking of just including the life insurance policy assignment directly in the QDRO distributing the pension benefits. 

Your thoughts are always welcome.

Thank you.

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Rosanne DeTorres Esq.
Flemington NJ
(908)284-6005

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Your client is far better served by getting a life insurance policy on her husband, either an existing one or a new one, to avoid the very problems that you recite.

If that is not possible, then you are stuck with "Plan B", which is getting an authorization to have your client contact PERS periodically to see whether her ex has done anything to jeopardize her interest.

Hanan

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Hanan Isaacs Esq.
Kingston NJ
(609)683-7400

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Original Message:
Sent: 04-08-2013 15:09
From: Rosanne DeTorres
Subject: Life Insurance under PERS

Greetings,

Can anyone recommend an alternate methodology for securing a PERS life insurance benefit for the dependent spouse after divorce.  I represent the dependent spouse/wife.  Husband sole life insurance benefits are those through his former employment with the State.  This life insurance benefit reverts to husband's estate after divorce.  A former spouse cannot be the named beneficiary of this benefit unless a post-divorce beneficiary designation change form is filed with the State naming the former spouse as the beneficiary.  Of course, the down side to this method is that the Husband changes the beneficiary designation again later without our knowledge, leaving my client without any benefits.  The life insurance plan does permit policy assignments, which would make my client the owner (so to speak) of the benefits, and which would irrevocably designate her as the beneficiary. 

Does anyone have an experience with these types of policy assignments?

I was thinking of just including the life insurance policy assignment directly in the QDRO distributing the pension benefits. 

Your thoughts are always welcome.

Thank you.

-------------------------------------------
Rosanne DeTorres Esq.
Flemington NJ
(908)284-6005

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