A recent Huffington Post article by Gabrielle Clemens shed some light on something I never thought about when I was going through my divorce. Thankfully things to turned out ok but there is the "what if" and the "oh no" after the fact for many facing or going through a divorce. Morbid as this may sound your divorce agreement should include life insurance on the spouse that is paying alim...

A recent Huffington Post article by Gabrielle Clemens shed some light on something I never thought about when I was going through my divorce. Thankfully things to turned out ok but there is the "what if" and the "oh no" after the fact for many facing or going through a divorce.
Morbid as this may sound your divorce agreement should include life insurance on the spouse that is paying alimony / child support to protect the financial future of the other spouse and the children in the event something happens to them prior to their fulfilling their financial obligations.

There are several things to consider if you are the non-paying spouse when it comes to life insurance before you sign that divorce agreement.

Adequate Life Insurance

Think about the amount of insurance necessary for you and your kids. Determine how much you will be receiving over the duration of your divorce agreement.

Alimony. Will you be receiving alimony for six months? A year? 2 years? Calculate the amount over the agreed upon term.
Child support. If you have young children you can expect to receive child support for quite a few years to come. Be sure to take into account the amount you will receive over the time your spouse will be expected to pay support.
Worst case you should negotiate an amount of insurance that covers paying off your current mortgage, college and any credit card debt. as a death benefit.

Missing policy Premiums

Like any other recurring bill insurance premiums must be paid as agreed or they will be cancelled.

If their policy is cancelled it means new health exams and a potential premium hike.

To protect yourself ask that your name be added to the policy as a contact if the premiums aren't paid. It's a win-win for you and the insurance provider as you both have a vested interest in the premiums being paid.

Out with the Old in with the New

You know how the story goes they marry someone else and that person changes all the rules. In this case the new spouse is named the beneficiary and you're well, out of luck.

To prevent that from being the case, make sure you are made the owner of the policy. Your ex is the owner of the policy and the one who pays the premiums but you remain the beneficiary and kept abreast of any changes or heaven forbid cancellations of the policy.

By taking the time to understand how life insurance works after a divorce you can protect yourself and your children financially in the event of the unthinkable.

Did you include life insurance as a provision in your divorce agreement?

Suzanne is a Certified Personal Finance Counselor for CareOne Debt Relief Services and is a Social Media Specialist. Suzanne supports the Ask the Expert forums as a coach and writes for A Straight Talk on Debt . You can also follow Suzanne on Twitter where she shares the latest debt industry news, and tips to keep your finances in check with the @AskCareOne account.

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