Attorneys
Divorce and Family Law

What’s your life insurance got to do with your divorce?

Life insurance is one of those things that people often buy about the time they start a family. Then, they tend to forget about it unless something serious happens.

If you’re heading toward a divorce, however, your life insurance policies need to be evaluated carefully. They may take on a new level of importance in your life. Here’s why:

  1. You need to stop your spouse from making any changes to the policies until the divorce is final and you’ve had a chance to negotiate. That means asking the judge to issue temporary orders that prevent your spouse from doing so — and you need to act quickly before any damage is done.
  2. Your policies may have considerable value. Some life insurance policies grow a cash value over time. That can add up to a considerable amount, especially in larger policies. Those funds are likely part of the marital assets.
  3. You may need to use the policy as a form of collateral toward your support payments. Whether you’re talking about child support or spousal support, the continued payments will be a source of financial stability for the other party for a number of years. You may be required to maintain a life insurance policy that would cover your support if you die prematurely.
  4. You have to negotiate who pays the premiums (and how). You may want reassurances that your ex-spouse won’t cancel a policy behind your back. If so, you may have to ask the court to let you make the payments and order your ex-spouse to reimburse you.

Working through the intricacies of your divorce and the division of assets can be difficult. An experienced advocate can help.