In a divorce or annulment decree, Texas courts will order that the estate be divided among the designated parties in a way that has been considered just and right by the court. The courts will regard the rights of each beneficiary, including any of the children of the marriage. If you’re a Texas resident, here are some important things to know about how your life insurance policy will be handled during and after divorce.
Division of property
In addition to dividing the estate among the appropriate parties, the court will mandate the division of personal property and items in a way that the court deems appropriate. These items include property that either spouse acquired while in another state that would have been community property had the spouse acquired the property in Texas.
Any property that either spouse acquired in exchange for personal or real property that would have been deemed community property if acquired in Texas is included in the property division proceedings as well. If one spouse acquired a property while living in another state and the property still would have been the spouse’s separate real estate even if they were living in-state, the property will continue to belong to the spouse who purchased it after the divorce.
Insurance policies and divorce
In Texas, the courts will divide the rights of each spouse as outlined in the insurance policy during divorce proceedings. The courts will not specifically award the spouse an insurance policy unless the policy is for life insurance.
The policy must be in effect when the divorce decree is submitted to the court. The policy will remain in effect until its original expiration date even if the policy was purchased to cover a couple who is now divorcing.