HB-5953, As Passed Senate, June 28, 2006

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5953

     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 1985 PA 42.

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,

it shall be the duty of the court granting the judgment  to  shall

include in it a provision in lieu of the dower of the wife in the

property of the husband, which  provision shall be in full

satisfaction of all claims that the wife may have in any property

which  that the husband owns or may own in the future  , or in

which he may have any interest.

     (2) Each judgment of divorce or judgment of separate

maintenance 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 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 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,  or 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) Each judgment of divorce or judgment of separate

maintenance 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 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 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,  or 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.

     (4) Each judgment of divorce or judgment of separate

maintenance 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)  Any right or contingent right in and to  In accordance

with section 18 of 1846 RS 84, MCL 552.18, any unvested pension,

annuity, or retirement benefits.

     (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 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.