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Life insurance and your divorce

On Behalf of | Jul 26, 2021 | Blog, Divorce

Life insurance can be an issue in a Maryland divorce. Sometimes, the marital separation agreement will require each spouse to maintain a certain amount of life insurance coverage. In some cases, ex-spouses may have life insurance on each other. This can be complicated.

Take time to study your existing policies

Whether an ex-spouse can be named a beneficiary of a life insurance policy depends on the terms of the policy itself. In some states, and on some policies, you cannot take out an insurance policy and name the ex-spouse as a beneficiary. They may be able to remain the beneficiary of a policy that previously existed. However, you may have to separate life insurance policies and get an entirely new policy after the divorce. Given that you are older and your health may have changed, your life insurance premiums may increase.

Get advice before you sign anything

It is crucial to see a life insurance agent during your divorce to review coverage options. This could impact the insurance decisions that you make in a divorce and afterward. If you are receiving alimony or child support, it is reasonable to ask that your ex-spouse maintain some coverage. You should also go over your existing policies to see how they would be affected by the divorce. If you are paying for an insurance policy, you should price out policies before you sign the divorce agreement so that you do not end up taking on a commitment you can’t afford.

A divorce attorney may help you learn more about how life insurance works after separating from your spouse. Your attorney may advise you about other financial issues that you need to consider in the divorce agreement.

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