Not exact matches
Realizing that such an award would be rejected out
of hand by a judge, Sparks moderated her demand, and Payton agreed to contribute $ 5,550 a month in child
support, establish a $ 175,000 college trust fund and purchase a $ 1 million
life insurance policy naming the child
as beneficiary.
While many arguments were raised in the courts below, Justice Brown focused the issue on what happens where a
support payor dies with a
life insurance policy who was required by court order to name a spousal or child
support recipient
as the irrevocable
beneficiary of the
policy.
Under the Family Law Act or the Divorce Act, a court can order a
support payor to designate the
support recipient
as the irrevocable
beneficiary of a
life insurance policy to ensure funds exist at the time
of the payor's death to satisfy his (or her)
support obligations specified in the
support order.
For example, if the husband is required to pay
support, he may also be required to obtain a
life insurance policy and name his spouse
as irrevocable
beneficiary of the
policy so that if he dies, the spouse will have sufficient funds for his or her
support.
In particular, the question was where a
support payor owns a
life insurance policy and is required to name the
support recipient
as irrevocable
beneficiary of the
policy, what rights does the
support recipient have to the
policy proceeds in the face
of a competing claim
of another dependant
of the deceased payor brought under the Succession Law Reform Act («SLRA»).
Examples
of instructions in the original decree that a spouse may not comply with include payment
of child
support, adding minor children to a work health
insurance policy, or adding the former spouse
as a
beneficiary on a
life insurance policy for benefit
of the minor children.
You may want to take out dual
life insurance policies, naming the other parent
as beneficiary for the benefit
of your child (ren) to ensure future
support in case something happens to one
of you.