Going through a divorce is one of life’s stressful events. You have come to an agreement on spousal and child support. What happens if your ex-spouse dies before meeting support obligations? Your Westport divorce attorneys can talk to you about your legal rights. Read on to find out why you should include life insurance in your divorce settlement.
Protect Your Assets
If you are awarded spousal support, then you must include a provision in your settlement agreement for your ex-spouse to obtain life insurance. This insurance policy would name you as the beneficiary. It does not provide you with an additional award of support; instead provides a safety net.
Secure Child Support Payments
Child support is not taxable for the person receiving them. A life insurance policy can also secure your child support payments. It is often overlooked, but child support is calculated based on the number of overnights the child spends with each parent. If one parent is no longer living, which means you will have the children all the time. However, your Westport Divorce attorneys can help with establishing a child support agreement that reflects this reality.
Provision Details
The divorce settlement agreement should include that the payor is required to maintain a life insurance policy. This policy covers the total amount of spousal support owed and discounted for present value and taxes. The payor can name a second beneficiary if the policy’s face value is more than the support obligation owed.
Legal advice can help you get the most out of your divorce settlement. Contact The Family Law Firm Healy & Eliot PLLC at https://www.thefamlawfirm.com/ for a consultation today!
