When a life insurance clause in a Georgia divorce agreement is unclear, the court reads it the way it reads any contract, and what the clause left unsaid usually decides the case.
Which Policies?
In Dodson v. Ward, 171 Ga. App. 469 (1984), a husband agreed to make his children “beneficiaries on his life insurance policies.” A policy that took effect after the agreement was signed, but before the decree was entered, was later changed to name his new wife. Because the agreement was “ambiguous as to which life insurance policies it purports to encompass,” the Court of Appeals sent the question to a jury.
What Kind of Insurance?
In Kirkendall v. Decker, 271 Ga. 189 (1999), a pilot was ordered to keep his former wife as beneficiary of life insurance he maintained through his employer. He carried only an accidental death policy. The Georgia Supreme Court upheld his contempt: “Accidental death insurance is distinct from life insurance.”
Every Word Counts
In Dohn v. Dohn, 276 Ga. 826 (2003), a husband agreed to keep a $500,000 policy in force “until all financial obligations required of the Husband have been terminated.” The trial court let him drop it once everything but periodic alimony was paid. The Supreme Court reversed, because that reading “makes meaningless the use of the word ‘all.’”
A General Release Is Not a Waiver
In Kruse v. Todd, 260 Ga. 63 (1990), a wife released “any and all actions, suits, claims, demands, and obligations whatsoever” against her husband, yet remained the named beneficiary of his life insurance when he died. The release did not reach the proceeds, because she had no claim to be named beneficiary when she signed it. The same agreement made any IRA “the sole and exclusive property” of its owner, and that specific language did waive her interest in his IRA.
So if you mean to give up a beneficiary designation, say so in those words.
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This post is a quick overview of the law and is not intended as legal advice. Please feel free to contact our office for a consultation if you have questions about this or any other legal aspects regarding your case!