Authorizes a court to order an obligor spouse to purchase or maintain disability insurance to ensure continued payment of court ordered support

BILL NUMBER:S823

Title of bill

An act to amend the family court act and the domestic relations law, in relation to the purchase or maintenance of a policy of disability insurance

Purpose

Authorizes a court to order an obligor spouse to purchase or maintain disability insurance to ensure continued payment of court ordered support.

Summary of provisions

Section 1. Amends subdivision (b) of section 416 of the Family Court Act, to add disability provisions as elements of support. Under this subdivision, a court will now be allowed to order an obligor party to purchase or maintain a policy of disability insurance as a means of ensuring continued support by an obligor party during a period of time fixed by the court.

Section 2. Amends paragraph a of subdivision 8 of part B of section 236 of the Domestic Relations Law permitting the court to order, in any matrimonial action, an obligor party to purchase or maintain a policy of disability insurance as a means of ensuring continued support by an obligor party during a period of time fixed by the court.

Section 3. Provides for an effective date.

Existing law

Currently, under Domestic Relations Law section 236 a family court judge may order, in his discretion, an obligor spouse to obtain a life insurance policy for his spouse or child.

Justification

According to the latest statistics, in 2012, approximately 58,833 divorces were legalized in New York State. When an obligor spouse becomes disabled, the possibility for economic hardship on both a beneficiary spouse, and in particular, dependent children, is significant. This bill will provide more discretion to judges in matrimonial actions so that they may order a person to obtain disability insurance to preserve family stability and economic protection. Such court orders ensure that contracts of support made between obligor spouses and their beneficiaries are honored despite disability. Without this provision, obligor spouses have the opportunity to avoid payment of spousal support by declaring disability. This bill will prevent delinquent and fraudulent cases from becoming exempt under law, and also honor obligations made to family units upon divorce.

Legislative history

2014: S.2938 2012: S.1922

Fiscal implications

None.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law.