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Divorce settlements via life insurance

On Behalf of | Mar 4, 2022 | Divorce

Family law in Ohio takes into consideration insurance for those experiencing divorce. Having insurance in place can ensure that your spouse receives aid should you pass away before them. For spouses who are still alive, the cost of a divorce could be overwhelming without insurance. No one can say exactly how their marital assets will be split up. What spouses can do, however, is use insurance to cover their losses.

For alimony and child support

Alimony and child support are key reasons why Ohioan spouses prepare with life insurance. These insurance packages offer annuities that go directly into paying your financial obligations for children after a divorce. There are uncertainties that revolve around alimony and child support. Though your monthly premium might not cover all of your child’s funding, insurance will decrease your financial liability.

Whole life, term and universal

Whole life insurance, which is also known as permanent life, offers annuities over the life of a designated beneficiary. Term insurance will provide annuities for a specified time and place. The coverage that your insurance package offers in universal insurance remains active only if you make timely payments. Strategically looking at divorce through the eyes of insurance gives you an edge. Insurance, as it relates to divorce, can ultimately protect your wealth.

Using a financial professional

No matter how well your insurance packages are lined up, speaking with a financial professional is always recommended. Your life after divorce will take on a new financial form. For some spouses, their expenses will increase while others might live with lower means. Financial professionals, who’re referred to as fiduciaries, have a legal obligation to ensure your best financial interests. These professionals also know how to value assets after taxes and the finalization of a divorce.

Family law in Ohio

Keep in mind that you must designate a policy owner for your insurance. This person has the authority to change insurance policies and can even rename beneficiaries. This person is also changeable when renamed as a result of a divorce.