California spousal support automatically ends on the death of the payor, but California Family Code section 4360 states a court may order the supporting spouse to maintain insurance, a trust or an annuity on the supporting spouse’s life for the benefit of the supported spouse so the supported spouse will not be left without means of support in the event that spousal support is terminated by the death of the party required to make the payment of support.
In a recent case, a husband argued that Family Code section 4360 violated California Family Code section 4337, which states the spousal support obligation of a party terminates upon the death of either party or the remarriage of either party. The Court of Appeal disagreed.
In re Marriage of Russell (2025) 115 Cal. App.5th 904, was a case in which 78 year old Glenn was 13 years older than Kathy and was worth over $24,000,000. After a trial he was ordered to pay $20,000 per month in spousal support to Kathy and to create a trust to secure spousal support in an amount no less than $3,000,000. Glenn refused to create the trust and appealed the decision.
As stated earlier, Glenn argued that the Court’s order violated California Family Code section 4337. He claimed the order was missing a provision for the termination of spousal support upon either party’s death. He argued California Family Code section 4337 states “except as otherwise agreed by the parties in writing,” spousal support terminates upon the death of either party and in this case there was no writing. The appellate court dismissed this argument and explained California Family Code section 4360 allows the Court to order an annuity, insurance policy or trust while the supporting spouse is still alive. Family Code section 4360 orders do not create a separate spousal support obligation for the estate of the deceased party, in a manner that would be in direct conflict with California Family Code section 4337. Instead, the life insurance policy, annuity or trust is part of the spousal support order at the time it is issued. Thus, there is no conflict between the two Family Code sections.
Based on this ruling, the Appellate Court has made clear the Court has authority to order an insurance policy, annuity or trust pursuant to Family Code section 4360 while the supporting party is still alive.