Estate of Logan v. Logan

In this case we hold that a term life insurance policy upon the life of one spouse is not divisible as community property under the Family Law Act, even though premiums for the policy before separation were paid with community property funds. An exception will arise if the insured spouse becomes uninsurable during the term paid with community funds, since the right to continued coverage upon payment of future premiums is a valuable community property asset for one who is uninsurable. If the insured dies during the term paid with community funds, the proceeds of the policy are community property. When premiums for a new term have been paid from postseparation separate property earnings and the insured remains insurable, the policy must be confirmed to the insured as separate property.

Frances Jeanne Logan (now Pritchard, hereinafter Jeanne) appeals from orders denying her (1) any community property interest in the proceeds of her former husband’s employment-related term life insurance policy, and (2) a community share in his pension-related death benefits.

Jeanne and William Logan married in 1947 and separated in 1966. William worked for American Airlines which…

I concur in the result. The reference to an exception in the event the insured party becomes uninsurable is not an issue before us, has not been fully briefed and is not ripe for decision under the present circumstances. Hence, I express no opinion thereon.

A petition for a rehearing was denied May 13, 1987.

David S. Maguire and Germino, Layne, Brodie, Runte & Maguire for Objector and Respondent.

No appearance for Claimant and Respondent.

[Opinion certified for partial publication. [†] ]

OPINION

KING, J.

In this case we hold that a term life insurance policy upon the life of one spouse is not divisible as community property under the Family Law Act, even though premiums for the policy before separation were paid with community property funds. An exception will arise if the insured spouse becomes uninsurable during the term paid with community funds, since the right to continued coverage upon payment of future premiums is a valuable community property asset for one who is uninsurable. If the insured dies during the term paid with community funds, the proceeds of the policy are community property. When premiums for a new term have been paid from postseparation separate property earnings and the insured remains insurable, the policy must be confirmed to the insured as separate property.

Frances Jeanne Logan (now Pritchard, hereinafter Jeanne) appeals from orders denying her (1) any community property interest in the proceeds of her former husband's employment-related term life…