Legal Question in Insurance Law in New Jersey

Estranged Spouse Contesting Life Insurance Beneficiary Claim

I lived with my b/f for past 3 years. He became terminally ill in 2/2004 and died 10/03/2004. His wife left 6 years ago, and moved in with her b/f. He never divorced for not wanting to share a police pension. In July, 2003 he made me beneficiary of two life insurance policies, one associated with the pension. Suddenly bereaved widow who got the house, is contesting life insurance,claiming he was incompetent. Insurance company is taking interpleader action. Do you think I will be named as a Defendant, and will I require an attorney if this goes to court? Attorney I consulted wants to file a suit against the estate for leverage,but requires $1,000 retainer, which I can ill afford. I have no desire to file this suit. Why is this so complicated. I thought a properly executed beneficiary change form held some water? Don't the deceased wishes matter at all? I might also mention he died intestate. Any advice is greatly appreciated. Thank You!


Asked on 12/03/04, 11:54 pm

2 Answers from Attorneys
Scott Diamond DIAMONDLAWYER

Re: Estranged Spouse Contesting Life Insurance Beneficiary Claim

you need to get involved inthe litigation since you were named beneficiary you should receive proceeds. I would handle on a contingency basis. 1000 seems cheap

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Answered on 12/04/04, 12:58 am
Alan Albin Alan S. Albin, Attorney at Law

Re: Estranged Spouse Contesting Life Insurance Beneficiary Claim

You are clearly a "party in interest" in the dispute over the life insurance proceeds, as you are the named beneficiary. It would also appear that you are a "necessary party." Therefore, you will probably be involved as a plaintiff, a defendant, or perhaps both.

Whether or not you want to pay a retainer to an attorney is entirely up to you, but I imagine if you lose the case, you may lose the life insurance proceeds, so you need to think carefully about this.

The reason this is "so complicated" is probably because your boyfriend "never wanted to divorce his wife" to avoid sharing his police pension. Though still legally married to someone else, he then moved in with you. Obviously his wife/widow couldn't be expected to be happy about this. Now she is attempting to make it difficult for you.

Time for a reality check: actions do have consequences. When you mess with a married man, don't be surprised when the vengeful spouse tries to make your life difficult. Also, don't be surprised that it may cost you substantially in legal fees to protect your own legal interests.

"Playing the victim" will not help you here. $1,000 does not sound like a particularly large amount of money for an attorney's retainer in a hotly-disputed litigation case.

If you are dissatisfied or wish to seek other alternatives, I would be happy to discuss being retained to handle your case. Please e-mail, see below, or call at 973-605-8995.

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Answered on 12/06/04, 10:43 am


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