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  • Life Insurance to guarantee CS

    Just wondering if anyone has a clue how long this process typically takes? My ex has life insurance policies thru his employment. Our divorce order (finalized beginning of January/13) states: I am to be the sole irrevocable beneficiary in trust for the children; I am immediately provided with copies of the policy; and he is to authorize the insurance company in writing to communicate freely with me.

    Today I tried following up again to see if this has been done. The insurance company cannot tell me anything due to privacy laws. They could not even tell me how long the transfer could reasonably take. When I asked them to advise me what my next step should be to move forward they were unable to recommend anything aside from contacting my lawyer. I no longer have legal representation. Contacting my ex is unfortunately not an option for me. Should I retain a lawyer again?

  • #2
    Not sure why your title is about RRSP.

    The insurance policy can be changed as soon as your ex makes a call to his insurance agent. When I did this I got an appointment that week, signed the forms, and it was done.

    If you want further details, I might suggest calling your own agent if you have one, and asking what the process would be and how long it would take. This would give you something you could quote in an affidavit.

    In this case I would not retain a lawyer because you already have an order. I would go to the courthouse and ask at FLIC before anything else.

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    • #3
      Not sure how much benefit there is in pursuing this. If he dies, you will have an automatic claim on his estate to cover CS (+section 7 and university costs) obligation.

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      • #4
        Duh... Your right Mess. I was multi-tasking and got the title wrong. Today I followed up with Life Insurance, tomorrow it will be the RRSP transfer... Both of which I know have not been resolved.

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        • #5
          My fear with the Life Insurance is ex cancelling the policy without me knowing. He has done similar things both throughout and after our marriage.

          My ex will not make the call to the insurance company. I say this because I have my court order which communicates the expectation that he does this, I have requested it and my lawyer (when I had one) requested it. Although I do not believe my ex has the deliberate intent to be passive-aggressive, often his behaviours certainly have that effect.

          FLIC is a good idea, thanks.

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          • #6
            I changed the title for you.

            Regarding what Dinky says, that is a good point. However it presupposes that there will be an estate of any value.

            Many people in these situations may have young children, and be divorcing in their 30s or 40s. They may have few assets and large debts. Child support is financed by income, not by assets.

            If a parent passes suddenly, a life insurance policy may be essential; of course this is why we get them when we are married. The estate may be sued for CS and section 7, but there may be other creditors too. I'm not at all clear if the children would have precedence over other creditors.

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            • #7
              It's possible that he is not able to opt-out of the policy. I couldn't opt out when I was salaried.

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              • #8
                Thanks for changing the title.

                I can assume there will be no assets of value when the ex passes. He is the type of individual who will spend $10 and have nothing to show for it when he has only $5 in his pocket. He declared bankruptcy (despite earning rental income on the matrimonial home he resided in) 2yrs after I left.. Same time I obtained an interim order for CS. I received much less than CS arrears in his bankruptcy.

                The life insurance policy is not much (couldn't get the value raised to cover CS obligations) but I figure it is better than nothing when you consider my youngest child is SN and expected to be a dependant for life.

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                • #9
                  The insurance I have through my employment is part of my benefits package. I am not aware of anyone being able to opt out of it. That being said, my agreement is similar to your only there is an additional clause that if either one of us does not name the other as trustee or terminates our insurance that a lien against the estate for equal to the CS obligation would be sought.

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                  • #10
                    I had to do the same with my Life Insurance through my employment. I just went to the employee in charge of it all at my work....I do think it took approximately 3 weeks to get Ex's name listed as the Beneficiary. And they would NOT list IRREVOCABLE on it, despite our Minutes of Settlement saying she was to be put as "Irrevocable".

                    Ex will only be listed as Beneficiary, while our Children are still eligible for Child Support.

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                    • #11
                      And I shouldn't say it took 3 weeks to get Ex's name listed.....It took 3 weeks for my employment to show me the proof to send Ex that her name was listed!

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                      • #12
                        OP, how did you proceed to make your ex beneficiary of your life insurance and how long did that take?

                        I am sorry that I am not helpful, but I find this really strange that payor is the only one expected to have life insurance and to name the receipent as beneficiary. What happens if receipient dies? Who will cover their share of child support?

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                        • #13
                          Originally posted by Toutou View Post
                          OP, how did you proceed to make your ex beneficiary of your life insurance and how long did that take?
                          If this is a work policy, you go to HR and ask for the form to make someone a beneficiary.

                          If it is a personal policy, you call your insurance agent and arrange an appointment, or have them send the form. It may be possible to download the form.

                          The change takes effect as soon as you sign the form. As knackered pointed out, it may take some weeks to get updated documentation to provide to your ex.

                          I am sorry that I am not helpful, but I find this really strange that payor is the only one expected to have life insurance and to name the receipent as beneficiary. What happens if receipient dies? Who will cover their share of child support?
                          This is an excellent point that I wish more people brought up in negotiations/court.

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                          • #14
                            I have nothing in my agreement that even hints that I keep life insurance, health benefits, or anything. Personally I too believe it is the responsibility of both parents to provide for their children. I have life insurance, full benefits, RESP, and RDSP for my kids. My ex may have been ordered to provide life insurance and health benefits but I provide much more than my ex. I do it because it is "right" and wish my ex would step up on the same fashion.

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                            • #15
                              And why don't you have anything in your agreement about the life insurance if you believe it is responsability of both parents? The life insurance that you have for your kids, is your ex beneficiary or someone else?

                              I am sure that your ex would be way more willing to comply if the agreement is fair and applies to both parents equally.

                              Comment

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