Don’t Forget About Life Insurance Policies As You Are Approaching Divorce
As you consider what changes you might wish to or have to make to life insurance policies in connection with your Massachusetts divorce, you have several key considerations:
- The rules of the life insurance policy itself: Is the policyholder allowed to change the owner(s) and/or beneficiaries?
- The laws of Massachusetts regarding equitable property division in divorce
- Any prenuptial or postnuptial agreement you and your spouse may have created
- The property division settlement that you and your spouse agree to through negotiations or the terms of a judge’s order in a divorce decree
At Callahan | Barraco, our attorneys will help you review your life insurance policy and determine whether it can be altered. We will also help you determine whether your spouse has any undisclosed life insurance policies. In property division negotiations or through divorce mediation sessions, we will advocate on your behalf in any issues related to a life insurance policy.
Protect All Your Interests In Property Division
Possible scenarios to envision regarding life insurance include the following:
- If you or your soon-to-be former spouse will be paying child support or alimony (spousal support), a family law judge may expect to see proof of valid life insurance coverage for the duration of the payment obligations. Whichever of you will be paying support may need to buy life insurance or revise an existing policy.
- If you and your spouse already took out a joint life insurance policy for your children’s protection, you may opt to leave it in place or possibly change its terms or ownership.
- If you have individual life insurance that names your spouse as the beneficiary, you will likely want to change the beneficiary to be another member of your family, such as your child(ren), parent(s) or sibling(s).
Your hopes, your spouse’s requests through negotiations, your divorce court judge’s order and/or the life insurance company’s terms may determine the way forward. Our divorce attorneys have a great deal of experience guiding clients through all aspects of property division. We can help you take care of issues related to life insurance, health insurance and other types of insurance such as homeowners insurance.
Don’t Leave Assets On The Table
A life insurance policy that you, your spouse or both of you took out should be out in plain view as you enter property division negotiations or litigation. At Callahan | Barraco, our divorce attorneys are ready to help you include all important assets in your settlement agreement or court order.