When people in Texas decide to divorce, they may have a lot of things on their mind. They may be concerned about child custody, co-parenting or even property division. These are some of the more contentious issues typically involved in divorce negotiations or even a trial in family court. However, one important issue may fall by the wayside too often: Life insurance. While many people divorce in good health and with little expectation that they may pass away in the future, few people can predict sudden emergencies or accidents leading to death.
Life insurance may be critical to ensure that the divorce agreement that the parties negotiated remains in place, even in case of a serious emergency. Some of the most important aspects of a divorce settlement may include alimony and child support. Many parents prioritize their children’s university education, and a plan for paying college costs may be included as part of the divorce agreement. In these cases, it may be particularly important to think about life insurance purchased specifically to maintain these agreements. The cost of the policy may vary, and both parties may negotiate as to who is responsible for maintaining the premiums.
The policy would need to be sufficient to cover child support and alimony for the duration expected. This means that it may be possible to structure the policy so that its value declines over time as support payments are made. This type of policy may provide greater peace of mind for managing those key expenses.
Divorce is a complex legal and financial matter as well as a deeply emotional one. A family law attorney may provide guidance on legal matters and work to achieve a fair settlement on property division, spousal support and other issues.