Getting a divorce dissolves many of the legal and marital obligations between married couples in California. Unfortunately, the process of divorcing is often chaotic, confusing and fraught with conflict. Many matters can go overlooked during such an emotionally traumatic event.
Properly managing and addressing a life insurance policy is one of these issues. Your insurance policy is important for your own financial security and that of any children you share with your spouse. This family law post will discuss a few valuable strategies for addressing life insurance after divorce.
Cash Value: Like your other assets, a life insurance policy has a certain cash value. As such, it is part of your net worth and should be included in property division matters.
Beneficiaries: Policyholders should consider what changes they wish to make regarding beneficiaries. For example, if your spouse was the primary beneficiary during your marriage, you may now wish to choose another person.
Co-Parent Policy: Family law attorneys often advise single parents reliant on child support to own and maintain a life insurance policy on their ex. This is a great strategy to replace child support if your co-parent should pass away when your kids are still young.
Your Policy: Again, if you have dependent children, it is wise to own and maintain an insurance policy on yourself. Such a policy means that even if you die, you continue to provide for and protect your children until they become adults.
Helping you address the needs of your entire family is the primary goal of a family law attorney. This includes financial matters as well as relationship issues, meaning that you can receive excellent advice about managing your finances after your divorce.
Source: Investopedia, "How Life Insurance Works in a Divorce," Greg DePersio, accessed Feb. 07, 2018