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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CHILDREN’S INSURANCE -- Divorcing parents must negotiate health and dental insurance for their minor children as part of their separation agreement. Sometimes the spouses negotiate a qualified medical support order, known as a QMCSO, which can be part of COBRA (Consolidated Omnibus Budget Reconciliation Act) coverage that also protects the former spouse.
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Life Insurance and Divorce
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