If you have decided to get a divorce in Maryland, you know that this can be a frustrating time. Part of the divorce process is separating your finances, which includes:
- Evaluating and protecting financial accounts
- Closing joint credit accounts
- Determining what you own and owe
- Documenting your income
After you’ve handled these elements, it’s essential to examine other areas of your life and ensure they are covered in your divorce decree. If you have children, receiving child support can be crucial. In addition, having you or the other parent obtain a life insurance policy may be necessary to safeguard the financial welfare of your kids.
Child support
When children are involved in your divorce, having you or your spouse pay child support may be necessary to ensure they are taken care of properly. You’re considered the custodial parent if you take care of them daily. The noncustodial parent may be required to make child support payments based on the time they spend with their children, expenses and income.
Protecting your children’s welfare with life insurance
If child support payments are being made, it can be essential for a parent to carry a term or whole life insurance policy. This action helps protect your children’s welfare financially if a breadwinner passes away and can’t make child support payments.
Knowing the appropriate coverage options for life insurance when getting divorced
If life insurance is a requirement for one or both of you when getting divorced, examining coverage options is crucial. Before divorce proceedings, both of your financial situations will be examined. The results of this examination will help determine the coverage needed for life insurance. Life insurance policies can be considered assets as they often build cash value. A term life insurance policy may be appropriate if your children are nearing adulthood.
Dictating the payer of life insurance premiums after a divorce
Spelling out who pays the life insurance premiums is also important to consider when getting a divorce. Having this element included in the divorce decree is essential. It may be beneficial to receive billing statements as well. Unpaid premiums can result in detrimental actions by the life insurance company.
Preparing for your children’s future is one aspect of a divorce you don’t want to miss. Using a life insurance policy can help ensure they are protected financially.