How Does Divorce Affect Insurance Policies?
Going through a divorce can be messy, and many things have been involved that need to be dealt with. During all of this, it is normal to overlook some important things, such as life insurance. If you need professional help with sorting out your life insurance policies, reach out to divorce lawyers in Kenosha, WI, today and get the proper legal help you deserve.
What do you need to do?
One of the most important parts of a divorce process is sorting out your life insurance and dealing with any related issues, especially if you have children. Some of the things you should take care of are:
- Update the beneficiaries
Life insurance aims to ensure that the people closest to you have financial protection in case of your death or if you lose your income. Most married people have their spouse listed as their primary beneficiary. If you provide the majority of the income to the household, then it is even more important to have life insurance.
However, after a divorce, if you do not have any children with your ex-spouse, then there is little to no reason to keep your ex-spouse as your primary beneficiary. If you do not want your ex-spouse profiting from your death, you should update the beneficiaries on your life insurance.
- Account for cash value
Many life insurance policies have a cash value, and you should not forget to consider that when listing your marital assets. You may choose to cash out the policy and split it along with the rest of your marital property.
Questions regarding life insurance that you should ask your attorney
Your attorney is there to help you with any legal advice you may need and to guide you on the best legal option for you. When it comes to life insurance after divorce, some of the things you should consider asking your attorney are:
- What can happen to your life insurance policies after you and your spouse divorce?
- After your divorce, what kind of insurance obligations would you have?
- How can you confirm whether your ex-spouse is insured or not?
- How can you decide or calculate the appropriate amount of life insurance?
- How can you know whether you are insurable or not?
Are you and your partner considering a divorce?
If you and your partner are considering getting a divorce, you may have many legal questions about divorce and its consequences. The best way to get answers to your questions is to talk to an experienced divorce attorney, so schedule a consultation today.