Divorce – Life Insurance | The Marks Law Firm


In some divorces, Life Insurance can be an
important factor. In others, not so much. Clients commonly ask questions about Life
Insurance and in some circumstances, Life Insurance can be an important ingredient in
the final settlement of the divorce. Some people worry that they may be left unprotected
in the event of a premature death (perhaps the other spouse is paying maintenance and/or
child support) while some people resent having to pay for a policy that benefits to a former
spouse. The law offers no hard and fast rules on this
issue. Courts do have the power to insist, in cases where income or wealth disparity
is significant, that the dependent party have protection from a premature death, at least
to the amount intended by the divorce decree regarding maintenance and child support. Courts
consider the premium on such a policy a fair price to insure the financial security of
the children and/or former spouse. In cases where income and wealth are balanced, the
need for insurance is not an imperative and courts may be less inclined to require the
policy.

Michael Martin

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