Legal Question in Real Estate Law in Maryland

In my boyfriend�s martial settlement agreement there is a provision that states that he will have a life insurance policy for $1.5M naming his son as the sole beneficiary. In the event that he cannot obtain this insurance policy �for the agreed upon amount, the Parties agree that the estate of the husband shall be liable to pay this $1.5M less child�s total named beneficiary amount to the Wife before any other distributions�. What does this mean if he and I were to have a joint account, ie joint home ownership, joint savings, investments, etc? Also, if we were married would these joint assets/accounts be protected from distribution? Agreement was filed in the state of MD.


Asked on 8/05/16, 10:08 am

1 Answer from Attorneys

Cedulie Laumann Arden Law Firm, LLC

Consult with a family law attorney with any specific questions about a marital settlement agreement.

As far as estates go, if the decedent promised to support a minor child in such manner (by having life insurance or otherwise allowing a claim against the estate) it would be prudent to maintain such insurance at all times during their life. Typically term life policies are inexpensive for young parents without major health issues.

Analyzing what would happen IF a parent who had an obligation to provide life insurance or pay out of his/her estate failed to maintain such insurance is well beyond the scope of an online post.

Generally speaking people can buy assets with others and creditors can only attach the part owned by the person who owes the debt. However, when someone with a pre-existing legal obligation transfers their assets to someone else for less than fair market value so that the assets are out of reach of a creditor (say by putting someone else's name on a deed or bank account or whatever) the transfer could be attacked as a fraudulent conveyance and the other party could seek to "reverse" any such transfer. That being said, assets held jointly by a husband and wife are usually protected from the claims of creditors of only one spouse.

While I hope the general legal information helps, it does not take the place of personal legal advice specific to your situation.

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Answered on 8/05/16, 11:55 am


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