HOUSE BILL No. 5586

 

December 13, 2007, Introduced by Reps. Scott, Schuitmaker, Condino and Meadows and referred to the Committee on Judiciary.

 

     A bill to amend 1909 PA 259, entitled

 

"An act to provide that judgments of divorce and judgments of

separate maintenance shall make provision in satisfaction of the

claims of the wife in the property of the husband and in

satisfaction of the claims of the husband and wife in contracts of

insurance and annuity upon the life of the husband or wife, and in

satisfaction of claims of the husband and wife in or to any

pension, annuity, retirement allowance, or accumulated

contributions in any pension, annuity, or retirement system,

including any rights or contingent rights in and to unvested

pension, annuity, or retirement benefits; and to change the tenure

of lands owned by husband and wife in case of divorce, and to

provide for the disposition or partition of such lands or the

proceeds thereof,"

 

by amending section 1 (MCL 552.101), as amended by 2006 PA 288.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. (1) When any judgment of divorce or judgment of

 

separate maintenance is granted in any of the courts of this state,

 

the court granting the judgment shall include in it a provision in


 

lieu of the dower of the wife in the property of the husband, which

 

shall be in full satisfaction of all claims that the wife may have

 

in any property that the husband owns or may own in the future or

 

in which he may have any interest.

 

     (1) (2) Each judgment of divorce or judgment of separate

 

maintenance granted by a court of this state shall determine all

 

rights of the wife in and to the proceeds of any policy or contract

 

of life insurance, endowment, or annuity upon the life of the

 

husband in which the wife was named or designated as beneficiary,

 

or to which the wife became entitled by assignment or change of

 

beneficiary during the marriage or in anticipation of marriage. If

 

the judgment of divorce or judgment of separate maintenance does

 

not determine the rights of the wife in and to a policy of life

 

insurance, endowment, or annuity, the policy shall be is payable to

 

the estate of the husband or to the named beneficiary if the

 

husband so designates. However, the company issuing the policy

 

shall be is discharged of all liability on the policy by payment of

 

its proceeds in accordance with the terms of the policy unless

 

before the payment the company receives written notice, by or on

 

behalf of the insured or the estate of the insured, 1 of the heirs

 

of the insured, or any other person having an interest in the

 

policy, of a claim under the policy and the divorce.

 

     (2) (3) Each judgment of divorce or judgment of separate

 

maintenance granted by a court of this state shall determine all

 

rights of the husband in and to the proceeds of any policy or

 

contract of life insurance, endowment, or annuity upon the life of

 

the wife in which the husband was named or designated as


 

beneficiary, or to which he became entitled by assignment or change

 

of beneficiary during the marriage or in anticipation of marriage.

 

If the judgment of divorce or judgment of separate maintenance does

 

not determine the rights of the husband in and to the policy of

 

life insurance, endowment, or annuity, the policy shall be is

 

payable to the estate of the wife, or to the named beneficiary if

 

the wife so designates. However, the company issuing the policy

 

shall be is discharged of all liability on the policy by payment of

 

the proceeds in accordance with the terms of the policy unless

 

before the payment the company receives written notice, by or on

 

behalf of the insured or the estate of the insured, 1 of the heirs

 

of the insured, or any other person having an interest in the

 

policy, of a claim under the policy and the divorce.

 

     (3) (4) Each judgment of divorce or judgment of separate

 

maintenance granted by a court of this state shall determine all

 

rights, including any contingent rights, of the husband and wife in

 

and to all of the following:

 

     (a) Any vested pension, annuity, or retirement benefits.

 

     (b) Any accumulated contributions in any pension, annuity, or

 

retirement system.

 

     (c) In accordance with section 18 of 1846 RS 84, MCL 552.18,

 

any unvested pension, annuity, or retirement benefits.

 

     (4) (5) For any divorce or separate maintenance action filed

 

on or after September 1, 2006, if a judgment of divorce or judgment

 

of separate maintenance provides for the assignment of any rights

 

in and to any pension, annuity, or retirement benefits, a

 

proportionate share of all components of the pension, annuity, or


 

retirement benefits shall be included in the assignment unless the

 

judgment of divorce or judgment of separate maintenance expressly

 

excludes 1 or more components. Components include, but are not

 

limited to, supplements, subsidies, early retirement benefits,

 

postretirement benefit increases, surviving spouse benefits, and

 

death benefits. This subsection shall apply applies regardless of

 

the characterization of the pension, annuity, or retirement benefit

 

as regular retirement, early retirement, disability retirement,

 

death benefit, or any other characterization or classification,

 

unless the judgment of divorce or judgment of separate maintenance

 

expressly excludes a particular characterization or classification.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. _____ or House Bill No. 5587(request no.

 

00397'07) of the 94th Legislature is enacted into law.