Insurance matters in a Nevada divorce process
During the course of a Nevada divorce, there are a great many seemingly minor details that require attention. Insurance issues are one such divorce topic, and are often overlooked by spouses who are eager to put an end to the process and move on with their newly single lives. However, failing to adequately handle insurance matters at the end of a marriage can have long-term ramifications that can bring serious financial harm.
Life insurance is one item that should be addressed. Even after the divorce is final, if one’s former husband or wife remains listed as a beneficiary on their insurance policies, that is who will receive the benefit should the insured party predecease them. While no one expects an early demise, the thought of their ex cashing in on such a turn of events is enough to prompt many to make the appropriate changes to their policies.
Life insurance also plays a role in divorce agreements in which the non-custodial parent is required to pay child support to the other party. It is possible to have the non-custodial parent ordered to purchase life insurance in an amount sufficient to replace those child support payments in the event that he or she dies while still obligated to provide support. Savvy spouses can insist that the policy be written in their name, so that the insured party does not have the ability to alter the policy or change the beneficiary.
These are just some of the insurance issues that can arise during a Nevada divorce. While it may seem like there is no end to the list of items that must be addressed during this busy time, insurance is not a matter to be taken lightly. If and when the need arises, having the proper insurance coverage can make a world of difference to those left behind.
Source: Fox Business, “How to Uncouple Your Insurance in Divorce,” Michele Lerner, May 31, 2013