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Don’t forget about life insurance in a divorce

On Behalf of | Mar 17, 2020 | High Asset Divorce

When parties to a divorce in Virginia believe that they have everything finalized because the major issues are settled, there are still numerous smaller details that must be handled correctly. Any of these issues can become a larger problem if the parties cannot get on the same page. One of the areas that is of critical importance but often overlooked is the matter of insurance for the spouses.

Parents will need to maintain life insurance policies to ensure that the children are cared for in the event of an untimely passing before the children are grown. Not only will child support need to be replaced, but the children might also need to be put through college. The two parties will need to come to a mutual understanding of how much insurance is required based on the anticipated costs for the children. Insurance may also be necessary in the event that one party is paying alimony to the other.

There may be issues that arise because life insurance always gets more expensive as the insured gets older and their health situation changes. Thus, the parties will need to anticipate how much premiums may rise as the insured ages. These calculations need to be factored into insurance decisions that are written into the divorce agreement, so they need to be addressed now.

Life insurance issues are complicated and can threaten to derail a divorce that is otherwise close to resolution. A family law attorney may be able to assist their client in making proposals to resolve any potential impasses between the parties. The attorney may be familiar with various insurance solutions and recommend a course of action that could provide for the children in a manner that is agreeable to both parties to the divorce.