When people in Ohio decide to divorce, life insurance may be the last thing on their minds. People may think about property division, child custody and other immediate issues, but insurance policies can be particularly important in finalizing a divorce settlement. An unexpected death or incapacity can have a serious effect on property division agreements, especially when child support or alimony is part of the agreement. Most people may expect that they have many years to live when they divorce, but unexpected emergencies can change lives instantly. Of course, this is why people can buy life insurance at any time, including in case of divorce.
In most cases, spousal support may last for a specified term; if no exact term is defined, a family law attorney may be able to advise how long they expect the agreement to last. A division of retirement funds is often also part of the divorce, which may account for support after retirement. In some cases, child support agreements may go beyond state minimums to include arrangement for college expenses. In these cases, parties may want to ensure that a life insurance policy is taken out on the paying spouse in order to ensure that the relevant payments would be made in case of an unexpected death.
The life insurance policy can be calculated to decrease in value over time along with the alimony responsibility. College expenses can also be incorporated into the policy amount in order to protect the children’s education. Responsibility for payments on the policy might be determined as part of the divorce settlement.
Divorce is a major financial decision as much as it is a legal and emotional one. A family law attorney may help people to navigate the complex issues of a divorce and reach a settlement on property division and other key issues.