Pay attention to life insurance in a divorce

| Mar 12, 2020 | family law |

Illinois divorces may be even more complicated than they initially seem. Of course, there are difficult issues such as property division and custody for the two parties to work out in the divorce agreement. Beyond that, there could still be other concerns that the parties may have thought were simple but really are not. One of these areas is life insurance after the divorce is final.

Life insurance involves issues beyond just property division. The parties will need to consider and project the expenses for child rearing along with the possible costs of college. If there is alimony, the parties will also factor that into the decision of how much coverage they need. The difficulty is that it is hard to anticipate the future to know the possible expenses.

Another life insurance issue to consider is the possible cost of a policy in the future as opposed to just now. Premiums increase as the insured gets older or their health situation changes. They may not even be able to qualify for coverage at all depending on the severity of any possible health problem. The parties must consider these contingencies at the time they sign their divorce agreement because after that, it could be too late to address these issues.

A family law attorney may help point these issues out because the parties may be too preoccupied with other big-picture issues to consider details such as this when getting divorced. The attorney may think of various contingencies and bring them to their client’s attention. They might also help their client negotiate a solution and include it in the divorce agreement that is to be signed. The parties must ensure that the divorce agreement is as comprehensive as possible, even if it is not an issue on their mind right now.

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