Divorce & Life Insurance

Divorce & Life Insurance

Hello, periodically, we like to update our clients with legal news we think may affect them.

​Today I want to address the issue of life insurance on the other parent.  Some times parents or former spouses receiving spousal support, want the support payments to be guaranteed by life insurance.  Meaning, that if the parent or ex-spouse owing you child support or life insurance dies before their  support obligation ends to you-  you will still have the life insurance benefit to fall back on and will not be totally out of luck if the support payor dies prematurely.

Two things to remember, if you are using life insurance that named you as a beneficiary before the divorce, that life insurance must be updated. The spouse obligated to pay you support must execute a new designation and rename you as beneficiary.

Once the divorce is entered, the divorce automatically revokes all beneficiary designations, including you if you were on the policy. This applies to wills and other beneficiary designations.

Secondly, you should have the other parent’s obligation stated in the divorce decree or paternity Order.  Why?  Because if the other parent fails to keep the life insurance and then dies, you would then have a claim against the deceased parent or ex-spouses estate.   Also, if your decree orders the other party to keep life insurance that may overcome a lack of change of beneficiary.

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