Phillips v. Wellborn
| Decision Date | 28 July 1976 |
| Docket Number | No. 10766,10766 |
| Parties | Mary E. PHILLIPS, Petitioner-Appellee, v. Geneva WELLBORN, Defendant-Appellant, v. John Raymond PHILLIPS and Edith Lola Phillips, Defendants-Appellees. |
| Court | New Mexico Supreme Court |
This case presents the issue of whether a former spouse has an interest in term life insurance on the life of her deceased former spouse which was not specifically awarded to either party by the court in their divorce proceeding.
Geneva Wellborn and John R. Phillips, Jr. were married on October 28, 1958. On October 13, 1964 Mr. Phillips took out a term life insurance policy on his life from the Texas Life Insurance Company. His beneficiaries thereunder were his parents, John Phillips, Sr. and Edith Lola Phillips. On December 1, 1968 Mr. Phillips took out a second term life insurance policy on his life from New York Life Insurance Company. The beneficiary under this policy was originally his estate but on February 19, 1973 he changed it to his parents as in the other policy. On June 18, 1970 Geneva and John were divorced. The decree did not dispose of either policy. Mr. John Phillips, Jr. married Mary E. Phillips on October 22, 1971. On April 13, 1973 John Phillips, Jr. died.
Mary E. Phillips sought declaratory relief against John, Sr., and Edith Phillips, Geneva Wellborn, and the life insurance companies to determine the ownership of the proceeds of four life insurance policies, including the two in controversy here. The trial court awarded the proceeds to the respective beneficiaries under the policies. The only issue before us in this appeal is whether Geneva Wellborn has any interest in the two term life insurance policies.
Appellant Geneva Wellborn argues that since both policies were purchased during her marriage to the insured and the premiums were paid with community funds, and since the divorce decree failed to dispose of those policies, she has a one-half interest therein, specifically as a tenant-in-common. Appellant relies in part upon § 22--7--22, N.M.S.A.1953 (Supp.1975), which states:
Failure to divide property on dissolution of marriage.--The failure to divide the property on dissolution of marriage shall not affect the property rights of either the husband or wife, and either may subsequently institute and prosecute a suit for division and distribution, or with reference to any other matter pertaining thereto, which could have been litigated in the original proceeding for dissolution of the marriage.
Appellant also relies upon the principle that life insurance policies purchased with community funds and undisposed in the decree are owned by the divorced husband and wife as tenants-in-common from the time of the dissolution of marriage. Harris v. Harris, 83 N.M. 441, 493 P.2d 407 (1972); Hickson v. Herrmann, 77 N.M. 683, 427 P.2d 36 (1967).
Appellees John and Edith Phillips argue that the term life insurance was not property but rather a contingent right to proceeds under the life insurance contract. Furthermore, they argue that equity should not permit an ex-wife of years past (three years) to make claim against insurance proceeds when she made none during the divorce and property settlement and did not make further payments. Finally, appellees argue that by the very nature of term insurance, the paying of premiums during the community does not necessarily make the term life insurance policies community property after the dissolution of the community.
The crux of the matter is how to treat term life insurance where the divorcing court does not...
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Olivas v. Olivas
...wife held the family home as community property during the marriage and as tenants in common after dissolution. See Phillips v. Wellborn, 89 N.M. 340, 552 P.2d 471 (1976); Hickson v. Herrmann, 77 N.M. 683, 427 P.2d 36 (1967). Although wife was the exclusive occupant of the house after the s......
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In re Arenivar, No. 7-05-10686 SL (Bankr. N.M. 9/13/2007)
... ... See Phillips v. Wellborn, 89 N.M. 340, 552 P.2d 471 (1976); Hickson v. Herrmann, 77 N.M. 683, 427 P.2d 36 (1967). Although wife was the exclusive occupant of the ... ...
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Aetna Life Ins. Co. v. Wadsworth
... ... Co. v. Johnson, 97 Idaho 336, 544 P.2d 294 (1976); In re Estate of Schleis, 97 N.M. 561, 642 P.2d 164 (1982); Phillips v. Wellborn, 89 N.M. 340, 552 P.2d 471 (1976) ... The California courts have rejected the risk payment approach. See, e.g., ... ...
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... ... Lock, 8 Ariz.App. 138, 444 P.2d 163 (1968); Travelers Ins. Co. v. Johnson, 97 Idaho 336, 544 P.2d 294 (1975); Phillips v. Wellborn, 89 N.M. 340, 552 P.2d 471 (1976); Comment, Community and Separate Property Interests in Life Insurance Proceeds: The Risk Payment ... ...
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Table of Cases
...Inc.v. Corlis, 95 N.M. 145, 619 P.2d 821 (1980): 4.7 Moore v. Moore,71 N.M. 495, 379 P.2d 784 (1963): 3.3(1) Phillips v.Wellborn, 89 N.M. 340, 552 P.2d 471 (1976): 3.2(4)(a) NEWYORK Karp v. Karp, 10N.Y.L.J. 12, 12-13 (N.Y. Sup. Ct. 1987): 8.6 Wyatt v.Fulrath, 16 N.Y.2d 169, 211 N.E.2d 637 (......