Life Insurance as a Retirement Asset in Oregon Divorce Mediation: Mediator Matthew House, J.D.

Whole life insurance policies are not just a form of insurance. They are also a property interest in an Oregon divorce.  Like annuities, whole life insurance policies should be handled with utmost care and precision so as not to inadvertently diminish their value or incur avoidable tax consequences.  Matthew will help you to do so.

If you have one or more whole life insurance policies in your portfolio:

• Matthew will request several documents from you, including the insurance contract.
• The terms of the insurance contract will determine the extent and wisdom of your options for dividing, transferring, or cashing out the policy.
• With a whole life insurance policy, depending on the language of the life insurance contract and associated documents, there will likely be several options for the disposition of the policy in your divorce. However, the desirability of each option will probably be vastly different. Matthew will help you understand your options and encourage you to make decisions with care.
• Matthew will meticulously draft the provisions concerning the whole life insurance policy.
• Once the divorce is finalized, the process of handling the whole life insurance policy according to the terms of your agreement is not very time-consuming. It may be possible to make the adjustment even before you file for divorce, depending on on the terms of the insurance contract and any agreements the two parties might have with each other.
• Important: If you are bound by the provisions of an automatic statutory restraining order because you have already filed for divorce before coming to mediation and you have a case pending, you are not permitted to alter any insurance coverage during the divorce process, without the written consent of the other party.
• The life insurance policy might be required as a stipulation of another provision of the Marital Settlement Agreement or a previous court order.
• As with all aspects of your divorce, Matthew will review the short-term impact, long-term impact, tax ramifications, potential feasibility issues, pro tips, and pitfalls to avoid concerning the whole life insurance policy.