Life insurance can provide essential security in a situation where at least one spouse may
feel a great sense of insecurity. Under Section 20-108.1 (D), a parent who has a child support
obligation can be required to carry life insurance as long as there is a child support obligation. Section 20-107.3(G)(2) provides that “the court may order a party to designate a spouse or former spouse as irrevocable beneficiary during the lifetime of the beneficiary of all or a portion of any survivor benefit or annuity plan of whatsoever nature, but not to include a life insurance policy.”
feel a great sense of insecurity. Under Section 20-108.1 (D), a parent who has a child support
obligation can be required to carry life insurance as long as there is a child support obligation. Section 20-107.3(G)(2) provides that “the court may order a party to designate a spouse or former spouse as irrevocable beneficiary during the lifetime of the beneficiary of all or a portion of any survivor benefit or annuity plan of whatsoever nature, but not to include a life insurance policy.”
Parties also may choose to agree that as long as there is a spousal support obligation or an
obligation to make payments as part of equitable distribution, the payor may be required to
maintain sufficient coverage.
obligation to make payments as part of equitable distribution, the payor may be required to
maintain sufficient coverage.
Important things to remember about life insurance are: premiums must be paid on time,
term coverage may expire at a certain date, beneficiary designations must be kept current and
accurate.
term coverage may expire at a certain date, beneficiary designations must be kept current and
accurate.
Another important piece to remember about life insurance when crafting any type of
settlement proposal is that whole life insurance policies have cash value which can be considered
a marital asset. You will want to factor this in to the entire picture when dividing the marital
estate.
settlement proposal is that whole life insurance policies have cash value which can be considered
a marital asset. You will want to factor this in to the entire picture when dividing the marital
estate.
Taking advanced steps to protect your financial security post divorce is important. Do not make assumptions. Section 20-111.1 provides that any death benefit, not otherwise specifically addressed as part of any final decree or written agreement of the parties, is revoked upon entry of a decree of annulment or divorce.
