Who Takes Ownership of a Life Insurance Policy in a Divorce?
Who should be the owner of life insurance policies related to a divorce settlement?
To answer that question, first consider the purpose of the life insurance policies. Often, life insurance is used to protect the income of a spouse providing alimony and/or child support. The policy would insure the life of the spouse providing child support, and the beneficiary would be the spouse receiving the support. This way, if the providing spouse were to die, the life insurance proceeds can be used to replace the lost income.
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GOLDEN YEARS -- Practically everyone who lives long enough needs in-home care, assisted living support, and/or skilled nursing care. Very few people have sufficient assets to cover the cost of extended skilled nursing. Long-term care insurance, purchased when the beneficiary is young, meets the need, offering the coverage at lower premiums.
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Divorce & Money: How to Make the Best Financial Decisions
Life Insurance and Divorce
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