Many people purchase life insurance, annuity insurance, and other savings-type insurance with cash value before marriage. They continue to pay premiums using their salary income after marriage. Once divorced, the division of insurance policies is likely to cause disputes, which is one of the typical issues frequently handled by Shenzhen marriage and family lawyers. The general public believes that insurance purchased before marriage is personal property and does not require division, but judicial judgments are not solely based on the time of insurance purchase. Instead, they are determined by segmenting and attributing the premium funds, with the cash value corresponding to pre-marital and post-marital payments having completely different legal statuses.

  In conjunction with the provisions of the Civil Code on the property of married couples and the Supreme People's Court's rules on civil trial, Shenzhen marriage and family lawyers focus on reviewing the source of premium funds when acting as agents in such cases. Premiums paid by individuals before marriage are considered personal property corresponding to the cash value of the policy; premiums paid using joint property such as salary, bonuses, and marital income after marriage generate cash value and appreciation that are legally considered joint property. The court will not forcibly redeem the policy or change the policyholder during divorce, and it is usually the policyholder who continues to hold the policy. Only the joint contribution part after marriage is subject to valuation compensation to the spouse.

  Judicial practice is mainly divided into three types of situations. First, after purchasing insurance before marriage, if the entire premium is paid using independent pre-marital savings without mixing with joint income and with complete proof of funds, the entire cash value of the policy is considered personal property, and no compensation is required from the other party during divorce. Second, if part of the premium is paid before marriage and the remaining part is paid using joint salary after marriage, the court divides the present value according to the proportion of contribution: the pre-marital contribution is owned individually, and the joint contribution part after marriage belongs to joint property, with the policyholder needing to compensate the other party for half of the corresponding value after marriage. Third, if the premiums are paid by the parents after marriage and there is clear evidence of unilateral gift or retention of gift certificates, the value corresponding to the premiums is still considered personal property and does not require division.

  In addition, it is necessary to distinguish the difference between insurance claims and cash value. Compensation for critical illness, death, and other personal nature claims have exclusive attributes and are all owned by the insured person individually, and are not subject to division during divorce; only the cash value and annual dividends of savings-type policies are distinguished according to the source of funds. Ordinary medical insurance and accident insurance are consumption-type insurance, without cash value, and there is no issue of division.

  Divorce division is calculated based on the current cash value of the policy, with the joint premium paid after marriage accounting for the proportion of the total premium. If the party claims full individual ownership, they must submit independent payment records, pre-marital fund certificates, and parent gift agreements; Shenzhen marriage and family lawyers suggest that evidence of capital segregation should be properly preserved during the payment period. If it is impossible to prove the source of funds, the court will directly assume that the post-marital payment is joint contribution.

  To avoid marital property disputes, Shenzhen marriage and family lawyers suggest paying the premium in a lump sum before marriage or using an independent account for payment after marriage to retain evidence of capital segregation. In summary, insurance policies purchased before marriage are not absolute personal property. The pre-marital contribution belongs to the individual, and the appreciation part from joint income after marriage belongs to joint property. Divorce should be legally valued and compensated to fairly protect the legitimate rights and interests of both parties.