In Re Marriage of Saslow

Where disability insurance policies are purchased during marriage with community funds, but the benefits are received after the parties have separated, are the benefits the separate property of the disabled spouse?

I.

After 18 years of marriage, Eileen and Ernest Saslow (hereafter wife and husband respectively) separated in 1975.

During the marriage, the husband purchased several disability insurance policies payable upon his disability. He paid the premiums with community funds. Although the couple owned several orange groves, a residence, some

stocks, and eight life insurance policies, the husband did not invest in a retirement or pension plan.

Prior to 1972, the husband had an active private medical practice as an allergist. He was forced to close his office in 1972 because of long-standing psychological problems. The deposition testimony of his psychiatrist indicated that the husband, who was 59 years old at the time of trial in 1978, was likely to remain disabled for the rest of his life. The wife suffers from Hodgkin’s disease.

When he was unable to continue his practice and while the parties were still married, the husband began to receive benefits payable…