Ex-Wife’s “Secured” Support Provides Her With Entire Life Insurance Policy

Photo by Pixabay on Pexels.comWhen couples separate and negotiate child or spousal support, it is not unusual to have a paragraph in a separation agreement or court order that the payment of support is “secured” by a life insurance policy on the life of the payor, in the event of his or her untimely death. The rationale, of course, is that there will be a fund of money to draw upon if the payor’s death occurs while he or she is still obligated to make support payments. A recent case from the Ontario Superior Court considers whether a “secured” spouse is entitled to receive ongoing support from the policy or whether the entire life insurance policy is payable to the former spouse. In Birnie v. Birnie, 2019 ONSC 2152 the Court focused on determining whether the payment of life insurance is contained in a “stand alone” clause that entitles the beneficiary to the entire policy or whether it is clearly only intended to provide security for…

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