The issuing company dictates what can be changed and usually requires notification from both spouses or papers from the divorce decree.
Some contracts have more restrictive language than others about what can be changed or divided.
If that does not cover the debt, they will recoup the balance from the company’s remaining liquid assets, if any. These include bondholders, the government (if it is owed taxes) and employees (if they are owed unpaid wages or other obligations).
Three elements come into play when dividing annuities: A financial advisor should be consulted early in the process to avoid problems that commonly arise when transferring annuities in divorce .Dividing community property, or property jointly owned by a married couple, can often be a complicated process, with your financial options dictated by potential tax implications.You should seek to understand the long-term consequences of changing your annuity policy as you plan for your new life.Some annuities are owned jointly between spouses, while others are individually owned.You can transfer in part or in whole an individually owned annuity.