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LIFE INSURANCE AFTER DIVORCE



After your matter is settled, more than likely you will feel a sense of relief. However, what happens if the spouse who is responsible for providing child support, maintenance and other financial support, passes away?  To ensure these payments, include in your Stipulation of Settlement that the responsible spouse has enough life insurance to meet all of these financial obligations.

 

Once you have agreed on support, you need to calculate the total amount.  Basic child support can be calculated.  Any pro rata add-ons like unreimbursed medical expenses or tutors, can be estimated.  For instance, you may be able to estimate how much extra-curricular activities, college and other additional expenses are going to total during the lifetime of the child support obligation.  You should know exactly how much your maintenance obligation is. Once you have this monthly amount then multiple that number by the number of years payment is to be received.  Once you have that figure, a life insurance policy should either be initiated or maintained to guarantee that total payments are insured through the entire period of support.  The policy should list you as the beneficiary. 

 

 As the years progress, the amount of insurance can decrease as the obligation decreases. Typically, proof of the insurance policy is required within thirty (30) to (60) days after the execution of your Stipulation of Settlement.  By obtaining this policy, both parties are ensured that support payments, especially for the children, are maintained in the event of unforeseen circumstances. 

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