Going through a divorce is difficult enough, and it becomes more complicated when various life insurance policies and benefits enter the picture. If you are currently a resident in the State of New York and going through a divorce, it is important to know your options while dealing with your life insurance policies.
Child support and alimony
When dealing with complex asset division, one of the first issues to tackle will include child support and alimony. If you are required to pay alimony and/or child support, you may be required to restructure your life insurance policy based on what you owe as well as the remaining time your children will require coverage and protection.
If you and your former spouse shared a life insurance policy, you may be required to petition the court in order to change the ownership solely to you. If this is left unattended and your ex-spouse is allowed to remain on your life insurance policy, it is possible that your name, as well as the names of your children, may be altered or removed at a later date, even without your knowledge.
With any complex asset division issue during a divorce, it is important to calculate the cash value of your policy. If a life insurance policy does currently have cash value, it may be possible to complete the ownership transfer into your name if you are also permitting your ex-spouse the ability to take some of the cash themselves.
Working with a legal firm such as Wallack is one way to ensure you are making the right choice when it comes to your life insurance policy during your divorce. The right legal team will not only guide you on the right path for your best financial future, but they will hopefully provide you with peace of mind.