The division of life insurance is one area divorcing couples in Florida may not consider but which can lead to serious problems between partners. Normally, property division includes real estate, bank accounts and retirement funds, but life insurance can also be considered part of the marital estate. If a partner owns a valuable life insurance policy, it can be difficult to liquidate it in order to give half to the other spouse.
Life insurance typically has low cash value but high value in terms of eventual proceeds. Because life insurance is designed to pay out on the death of the owner, few couples have access to the cash represented by the payout when they divorce. However, if the owner intends to keep the policy, the other spouse may claim that these proceeds should be considered part of the marital estate and that he or she should be reimbursed accordingly.