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Property Division in Divorce: Insurance Benefits

In divorce, a critical issue impacting the treatment of insurance policies is whether the policy benefits are separate property or marital property. State divorce courts have reached varied answers on the question of whether a life insurance policy is separate or marital property. In some states, "whole life" insurance contracts have been held to be marital property and generally have been valued at their cash surrender value. "Term life" policies, on the other hand, which lack a surrender value, have not been considered divisible property. In states in which inheritances or gifts are classified as separate property, insurance proceeds usually are not treated as marital property for purposes of property distribution in divorce. Other courts have ruled that the proceeds of a life insurance policy purchased with community property should be treated as community property in a divorce.

Grounds for Annulment: Mental Incapacity

Under the law, a marriage is voidable in cases where either of the spouses is incapable of understanding the contract of marriage. Some states hold that if the party is incapable of understanding because of insanity or serious mental disorder, the marriage is void. Some state statutes provide that mental illness can be a ground for annulment if the defect prevents the afflicted spouse from appreciating the contract and conferring thoughtful consent to the marriage.

No-Fault Divorce: Irretrievable Breakdown

For purposes of no-fault divorce, states use various terms to describe the basic concept of marital breakdown, including irreconcilable differences, incompatibility, insupportability, and irretrievable breakdown. The realization that existing divorce laws no longer comported with the modern marriage experience and marital life led most states to recognize marital disharmony as a basis for no-fault divorce. Statutes usually provide some definition for the concept, and courts often have discretion to apply the standard in individual divorce proceedings.

Alimony: Periodic Spousal Support

Alimony, also called "spousal support," is common in many states. It is monetary support given to a dependent ex-spouse to maintain that ex-spouse's standard of living, as it existed during the marriage. Alimony also is given, regardless of the receiving spouse's sex, to compensate for faithful service provided as a homemaker, loss of employment opportunities and the foregone acquisition of skills for the sake of family, and sacrifices made during the marriage.

Defenses in Fault-based Divorce: Recrimination

Recrimination is a traditional equitable defense to fault-based divorce actions and is based on the principle that a person seeking justice must come to court with clean hands. It seeks to avoid divorce on the ground that the petitioner has engaged in conduct that would entitle the respondent spouse to a divorce. For example, if a wife files for divorce on the ground of her husband's cruelty and if she herself is guilty of committing cruelty against her husband, then the recrimination defense would act to prevent dissolution on the ground of the husband's cruelty.