somanyquestions
recently joined
Reged: 01/25/11
Posts: 4
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My wife filed for divorce after it was discovered that I have terminal cancer. I was told that once the divorce is final I will have to secure a life insurance policy to cover her alimony after I pass.
Given that I most likely have a short life span, does anyone think I will be able to cut alimony (not child support) after I die, so as much life insurance is handed to my young children? Documenting the timeline from diagnosis to her filing will not be a problem. I don't think she should get a windfall after I die.
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spinnerdegrassi
Carpal \'Tunnel
Reged: 08/20/06
Posts: 7952
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No one is going to give you a policy with a diagnosis of Terminal Cancer.
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somanyquestions
recently joined
Reged: 01/25/11
Posts: 4
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I am trying to protect my current policies before I was diagnosed and before she filed. I want those to go to my children and I am not sure if the law will require me to give a portion of those as alimony.
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Goodmom
Pooh-Bah
Reged: 06/17/07
Posts: 2015
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Can you work? And what is your income compared to hers? You may not pay spousal support if your incomes are similar or you are disabled because of your disease. If you are ordered to pay spousal, it usually ends on death of either party or remarriage of the recipient. You really need to get yourself an attorney.
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Miranda
Carpal \'Tunnel
Reged: 06/02/05
Posts: 20822
Loc: North of Mexico
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Who told you that and have you even been ordered to pay support yet?
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13.1...because I am only half crazy!
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NoRegrets
newbie
Reged: 01/08/11
Posts: 46
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How old are your children?
If she has income you can request that she have a policy with you as a beneficiary as well.
When I divorced I was required to insure the amount of alimony that I would be paying (at today's value). For example if I would be paying $300K in total over 10 years then I needed to make sure I had a policy for say $250K (mutually agreed upon present value). I have a term policy for $1M (obtained well before divorce) and the beneficiaries were essentially rewritten such that the ex receives any remaining alimony at present value (recalculated each year, the kids (actually her) gets amount to cover remaining child support\college and the balance goes to my brother who will manage the funds and distribute to kids as needed after college years. I trust my brother so nothng more formal had been drafted other then our agreement.
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1966Gal
Carpal \'Tunnel
Reged: 04/04/08
Posts: 10098
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It depends on how old your children are.
Are they minors? If so, I'd request that your life insurance go into a trust and pay out to your wife in the same amount that your CS would be, until they reach adulthood. Then the balance of the trust go to them.
Afterall, your wife is going to need some of your life insurance to help care for the kids. Do you want them to have a "lesser" childhood so they can have an inheritance when they are adults? Not so sure that is the best option.
So sorry for your health issues.
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The Gov cannot give anything to anyone - that they have not first taken away from someone else.
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Avaya
Carpal \'Tunnel
Reged: 02/09/06
Posts: 9816
Loc: Arkansas
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[quote]Are they minors? If so, I'd request that your life insurance go into a trust and pay out to your wife in the same amount that your CS would be, until they reach adulthood. Then the balance of the trust go to them.[/quote]
I wouldn't. Social security benefits would likely be more than the CS would be. I'd put the life insurance proceeds in a trust to pay out to the kids at a certain age or at milestones ..... 25% at age 18, 50% at age 21, 25% at age 25.....
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Eternity is too long to be wrong.
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somanyquestions
recently joined
Reged: 01/25/11
Posts: 4
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Thanks everyone,
To answer some of the questions so far. My children are young and my top priority is for them to be cared for after I pass. I understand that means my future ex-wife will have access to some of my estate. What I am trying to prevent is a lump sum payment. My understanding of the law in my state (South) is that it would be hard to pay out annually vs. a 1 time payment.
My alimony once it is finalized will be high, therefore a one time lump sum to her at death would be substantial. It would not leave much for my children when they reach adulthood.
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1966Gal
Carpal \'Tunnel
Reged: 04/04/08
Posts: 10098
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See a lawyer about establishing a trust.
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The Gov cannot give anything to anyone - that they have not first taken away from someone else.
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