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Life insurance and child support

One way that a former spouse in New York can protect themselves financially in a divorce is to ask for a life insurance policy to cover their former partner’s child support obligations. According to Insure.com, as soon as one parent knows they are going to file for divorce, they should take immediate action regarding their insurance policies. Failure to do so can leave matters involving the policies up to the discretion of the courts because filing for divorce will result in an immediate freezing of all accounts.

It is important for parents who are awarded child support to consider getting life insurance on their former partners. For example, if the other parent died and was no longer able to honor their child support obligations, then the remaining living parent who is named a beneficiary would still be able to receive payments from the policy payout to cover the unpaid child support.

Life insurance policies can be purchased after the divorce, even if it is not purchased by the primary caregiver of the children, states Nerd Wallet. Since child support is often used to cover other obligations involving the care of the kids, such as child care, living expenses, college tuition and more; upon payout, ex-spouses can use the life insurance benefit to fulfill those financial obligations should something happen to their primary caregiver.

Parents who are going through a divorce and have life insurance should take some time to discuss their situation with a financial advisor. Careful consideration should be given to their post-divorce situation and their children’s needs to ensure that measures are being taken to financially protect them.

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