IL SB2437

Amends Illinois Marriage and Dissolution of Marriage Act Section 503 regarding disposition of property and debts in divorce proceedings.

Establishes that when a life insurance policy is marital property, the court allocates ownership, death benefits, and premium payment obligations equitably between parties.

Provides that after divorce, a former spouse's designation as beneficiary on a life insurance policy is ineffective unless the judgment designates them, the insured redesignates them, or they are designated to receive proceeds in trust for a child or dependent.

Requires insurers to pay proceeds according to alternative beneficiary or insured's estate if former spouse designation is invalid, unless insurer receives written notice before payment and has not filed interpleader.

Exempts life insurance policies subject to ERISA, Federal Employee Group Life Insurance Act, or other federal law from the beneficiary designation rules.