Legal Question in Bankruptcy in Minnesota

Bankruptcy and ownership of life insurance

A life insurance contract was taken out by my exhusband and myself on my father. My ex and I are co-owners and co-benificiaries of the policy. The policy was purchased to guarantee a loan from my father, which my ex listed in his bankruptcy and did not finish paying. I did finish paying my half. When my father dies, is my ex entitled to half of the benefits?


Asked on 7/01/02, 7:33 pm

1 Answer from Attorneys
David Kelly-952-544-6356 Kelly Law Office

Re: Bankruptcy and ownership of life insurance

First of all, if your divorce decree is less than five years old and if your X was ordered in the decree to pay that loan, the bankruptcy in all likelihood does not take him off the hook. The discharge from the bankkupty court would not apply. You can take your X back to family court for contempt for not obeying the order.

As far as the insurance itself is concerned, it sounds as if you have no way of changing it and yes, your X would get half the proceeds.

UNLESS, when you take your X back to court he is ordered by the family court to transfer the policy to you or some similar such thing.

One more comment. It's not always best to go to a specialist who only does one thing. If I were not up on both bankruptcy and family law, I could not have properly and fully answered your question.

Good luck.

This response is for general information purposes only and does not create an attorney-client relationship. You are advised to consult the attorney of your choice concerning the details of your case.

Read more
Answered on 7/02/02, 1:49 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Minnesota