Endowment policy remaining after divorce?

A reader from Mid Glamorgan has lost contact with his ex-wife, but her name is still on their old endowment policy.

Robin Marcus, director of the UK’s largest online conveyancer www.easier2move.com offers some help.

Neil from Pontyclun asks:

Hi,

When I divorced my ex-wife I took over the mortgage and endowment policy linked to the mortgage.

However, I have since moved and no longer have the mortgage but the endowment policy still has her name on it although I have continued to pay it for the last 15 years.

Now I no longer know where my ex is.

What happens when the policy matures? Will it pay me in full?

When we divorced, she signed in court to take a lump sum as full and final payment against my estate.

Robin from www.easier2move.com responds:

It would appear that at the time of your divorce you went to court and I assume therefore that there was a court order.

If the court order dealt with the policy as it should have done then I suggest that you make an application to the court for the judge to sign over to you the benefit of the policy so that on maturity the proceeds are paid to you.

However, if the court order did not mention the policy then you can make an application now for the court to deal with the benefit of the policy although the court may be reluctant to make a decision without some input on behalf of your ex-wife.

The best you can expect is for a court order for the proceeds to be paid to you to be held on trust for you and your ex-wife. This process will be costly and uncertain.

The best course of action in this case is to re-double your efforts to locate the whereabouts of your ex-wife. Once you contact her, hopefully she will agree to assign the benefit of the policy to you. However, even if she doesn’t concur, you will stand a much better chance of persuading the court to find in your favour if they are able to speak to her.

If you have a question for Robin or one of our team of experts go to the myfinances.co.uk Ask the Mortgage Expert section.

For more information on the issues discussed here, go to www.easier2move.com.