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In a divorce, life insurance policies are often marital assets. A life settlement provides a market-based cash value that can be divided between parties — rather than surrendering the policy at a loss.

Life Settlement in Divorce

Divorce & Estate Changes

Your life changed. Your insurance should too.

Divorce, remarriage, death of a spouse, changes to your estate plan — all of these can make an existing life insurance policy unnecessary.

Instead of surrendering it or letting it lapse, sell it. The market pays significantly more than the insurance company.

See What the Market Will Pay
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Common scenarios we handle

Life changes often leave policies in limbo. We help identify the value they still carry and convert it into something useful.

01

Ex-spouse was the beneficiary

The policy was purchased to protect a spouse who is no longer in the picture. Rather than lapse it, sell it and recoup market value.

02

Estate plan restructured

A revised estate strategy may no longer require the same level of life insurance coverage. The excess policy can be converted to cash.

03

Trust no longer needs the policy

Irrevocable life insurance trusts (ILITs) sometimes outlive their purpose. If the trust's goals have changed, the policy may be eligible for settlement.

04

Business partnership dissolved

Buy-sell agreements fund policies on partners who have since left the business. When the arrangement ends, the policy retains market value.

Don't leave value on the table during a transition.

Life events are chaotic. Insurance policies are easy to overlook. Most people going through a divorce or estate restructuring focus on the obvious assets — the house, the retirement accounts, the savings.

Life insurance policies are often forgotten until it's too late to capture their value. A few minutes to request a review can mean the difference between walking away with a meaningful sum or walking away with nothing.

See what the market will pay.

A confidential review is free. We'll evaluate your policy and tell you what it's worth on the secondary market before you make any decisions.

Frequently Asked Questions

Can I sell my life insurance during a divorce?

Yes, if both parties agree or the court orders it. A life settlement provides the fair market value of the policy, which is typically much higher than the cash surrender value.

How is a life insurance policy valued in divorce?

The policy's market value in a life settlement is often 4–7x its cash surrender value. Getting a settlement valuation provides a more accurate assessment than relying solely on the carrier's surrender value.

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