In order to secure your divorce settlement payments (alimony, child support, etc.), it is highly recommended that you purchase a life insurance policy on the life of your paying spouse BEFORE your divorce has been finalized. You want to be both the owner of the policy and the beneficiary. That way you can be sure that the premiums will be paid on time and the beneficiary(s) won't be changed without your knowledge and consent.
Why Life Insurance?
Your divorce settlement payments will end upon the death of your ex-spouse! The proceeds from the life insurance policy will make sure that you receive a tax free, lump-sum payment of what you would have received over time from your divorce settlement payments.
Why BEFORE the divorce has been finalized?
If your paying spouse refuses to cooperate in getting the required medical exam or if your paying spouse is uninsurable due to health or other reasons, you need to know this before the divorce is finalized so that you can find an alternate way of securing your divorce settlement payments.
Questions?
This is a very complex topic and the laws and regulations differ from state to state. Please consult your divorce attorney before proceeding. For more information on securing your divorce settlement payments and/or other financial questions related to your divorce, please contact, or have your divorce attorney contact, our sister company, Bedrock Divorce Advisors, LLC.