Home » Women's Interest Articles » Florida Case Proves Importance of Changing Beneficiaries After a Divorce
Florida Case Proves Importance of Changing Beneficiaries After a Divorce
One case recently decided by the Florida Supreme Court shows that sometimes courts must determine whether the vague language in marital agreements trumps the specific terms of other contracts.
August 26, 2011 /Womens Interest PR News/ -- Many divorcing couples in Florida negotiate and sign marital settlement agreements, which are court-approved contracts stipulating the terms of the marriage dissolution. A typical marital settlement agreement will address issues such as asset distribution and child and spousal support obligations.
Occasionally, courts must determine whether the vague language in marital settlement agreements trumps the specific terms of other contracts. In Crawford v. Barker, the Florida Supreme Court awarded the death benefits of a deferred compensation fund to a former spouse after finding the language of the marital settlement agreement vague as compared to the language of the deferred compensation fund.
Marital Settlement Agreements
Marital settlement agreements in Florida are typically reached during mediation and cover all the obligations divorcing parties have to each other upon dissolution. This includes the equitable division of assets, spousal or child support, and references to external exhibits like parenting plans. Because marital settlement agreements are court-approved contracts, their terms and conditions are binding upon both former spouses and are subject to court interpretation and enforcement. Such an agreement was at issue in Crawford v. Barker.
Crawford v. Barker
After 21 years of marriage, Manuel and Linda Crawford divorced in 2005. They established a marital settlement agreement through mediation; the agreement included a provision addressing the distribution of Manuel's pension plan and deferred compensation fund to Manuel. However, Manuel died shortly after the divorce was finalized and prior to removing Linda as the beneficiary on his deferred compensation fund. Manuel's daughter, Jannie Barker, became his estate representative and began a legal dispute with Linda about her rights to the deferred compensation fund's death benefits.
The Florida Supreme Court reviewed the lower court's decision as an interpretation of the language in the marital settlement agreement, which did not clarify who should receive the death benefits from the deferred compensation fund, against the identified beneficiary on the fund itself. Reversing the decision, the court found the ownership language in the marital settlement agreement concerning the deferred compensation fund to be vague when compared to the simple and plain language of the beneficiary term listed in the deferred compensation fund.
Lessons Learned
Marital settlement agreements are an integral part of the Florida divorce process. They allow couples to negotiate how to divide their marital assets and move forward with their separate lives. However, if they are not specific and complete, these contracts can be interpreted by the courts differently than intended by the former spouses when disputes arise. Former spouses should remember to change the beneficiaries on any insurance policies, pension plans, deferred compensation funds or other accounts following a divorce.
If you are contemplating divorce, contact a Florida family law attorney today to discuss the dissolution process. A lawyer experienced in negotiating and drafting marital settlement agreements and other legal documents can help you protect your assets and ensure that, in the event of death, your legal wishes are carried out as you intended.
Article provided by Brodie & Friedman, P.A.
Visit us at www.brodiefriedman.com
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