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How does life insurance figure into divorce planning?

On Behalf of | Jul 9, 2020 | Divorce |


That’s one quick and conclusive answer to today’s above-posed blog headline query. Although life insurance might be of little or no importance at all in some divorces, it can comprise top-tier subject matter in others.

How do you know if life insurance is a divorce concern?                                          

Most divorcing Texas spouses have a lot on their minds. We note at the established Dallas family law firm of Katie L. Lewis that one central concern harbored by many impending exes is whether they are ready for divorce.

That’s a fair self-posed question, and one that presupposes some sound pre-divorce planning.

We certainly recommend that exercise, especially concerning money matters. We note how important it often is for a divorcing party “to gather your comprehensive financial information together, and to make yourself aware of your financial situation.”

Taking that step – especially with close input from a practiced divorce attorney – can help a divorcing individual gain deep insight and help to guide the divorce process in a positive way. Financial planning can promote understanding surrounding investments, taxes, debts, existing assets (including their location and value) and future needs.

Life insurance might well configure prominently into the mix. A recent Forbes article on the topic underscores generally that “life insurance can help protect the assets you’ve worked to build.” Moreover, continuing coverage can provide great peace of mind and invaluable assistance applicable to assumed debt in the event an ex-spouse with payment duties passes away.

Perhaps the value of life insurance can be no better illustrated than via a scenario where a non-custodial parent with child support obligations dies. An existing policy with that person as owner and listing the children and other parent as beneficiaries can ensure continued financial protections.

Many and diverse questions can logically arise concerning the role of life insurance in divorce. Forbes advises any person seeking relevant information to consult with an experienced attorney.