Bucci & Dix

Court Cannot Order Life Insurance

In Lewis v. Lewis, a recent appeal from Chesterfield Circuit Court to the Virginia Court of Appeals, the Court examined a number of equitable distribution issues between the divorcing couple.  In this matter, there was evidence that Mr. Lewis had diverted and expended Mrs. Lewis' marital share of his profit-sharing plan and retirement accounts.  Accordingly, the Court sought a way to compensate Mrs. Lewis for her lost share.  While the parties had not contemplated life insurance issues in their property settlement agreement, the Court ordered Mr. Lewis to take out and maintain a $200,000 policy naming Mrs. Lewis as the beneficiary.  The Virginia Court of Appeals found error, holding:  "Furthermore, under Code § 20-107.3(G)(2), a trial court cannot order that a person obtain life insurance on himself for the benefit of a former spouse, although a court can order that a person elect to have survivor's  benefits on a pension or annuity.  See also Lapidus v. Lapidus, 226 Va. 575, 579, 311 S.E.2d 786, 788 (1984) (finding trial court had no authority to order husband to contract for life insurance).  Therefore, the trial court did not have authority, as part of the equitable distribution here, to order that husband obtain life insurance for the benefit of wife."  Had the parties contemplated a life insurance obligation in their property settlement agreement, the trial Court would have been free to uphold such a provision.  As they did not, however, no obligation could be ordered.