Opinion ID: 6227037
Heading Depth: 2
Heading Rank: 2

Heading: The ex-wives

Text: A year and a half later, John died. His ex-wives discovered the sale and were not happy. Each claimed that a court order during her divorce barred him from selling the policy and entitled her to the payout. See Travelers Ins. Co. v. Johnson, 579 F. Supp. 1457, 1461–63 (D.N.J. 1984). John’s first wife, Linda, had filed for divorce in 2003. Though a court ordered that they distribute their assets equitably, John could not pay up and declared bankruptcy. In 2010, 2 the bankruptcy court found that Linda was his biggest creditor, and she recorded that judgment for $2.7 million in New Jersey. Also, the New Jersey Superior Court ordered John to take out term life insurance for Linda’s benefit. To comply, John named Linda as his lifeinsurance beneficiary. But John’s compliance did not last. In 2014, he took Linda off the policy and substituted his second wife, Kimberly. Several months later, he took Kimberly off and substituted his children. Kimberly soon filed for divorce, and a court ordered him not to dispose of any marital assets, including the life-insurance policy.