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Hi, I'm Heather, an attorney with 15 years family law experience, and I'll be assisting for informational purposes.
I'm not sure you are referring to as "they." If you are referring to the life insurance company, they can only not pay you the insurance if it provides for an exclusion in the policy. You will need to closely read the policy and figure out if the reason the money is being withheld is in the life insurance policy, which is a contract.
Has this answered your question?
Thank you for using our forum. My name is ***** ***** I hope to assist you today. Your prior expert appears to have opted out, this sometimes happens and I apologize for the inconvenience/delay.
Unfortunately, the short answer to your question "can they do that?" is "yes"
I do wish that I had a different answer for you, but I want to provide you with a clear and concise statement to answer your question and avoid any confusion or ambiguity.
Also, please keep in mind, this is a "general information forum" only, and does not substitute for the advice or instruction of a local attorney. If you believe that there is something unique or different concerning your matter, or if you would like a formal legal opinion, you will want to visit with a local attorney. This matter can be handled by either a criminal defense attorney or a general practice attorney (I would recommend a criminal defense attorney - but make sure that they have some experience with the restitution order enforcement side of things, many criminal defenders specialize through trial/appeal only and not post-judgment).
Doing this will subject your adult daughter to a collection claim through what is called the "Uniform Fraudulent Transfer Act" (you can learn more about how this works here: http://www.kslegislature.org/li_2012/b2011_12/statute/033_000_0000_chapter/033_002_0000_article/033_002_0005_section/033_002_0005_k/