OK, let's be honest--it's not that unusual when going through a divorce to wish something bad happens to your ex
. Of course in practical reality, what happens to the divorce financial settlement if the payor dies? The obligation dies with the spouse and that can leave the recipient in a financial bind.
But wait, many people say, we had life insurance when we were marred. That doesn't mean you still do. The ex may have let the premiums lapse, or may have changed the policy to name a new significant other as the beneficiary. The time to find out is not after the ex has died.
Arguably it would be possible to word the divorce settlement agreement to require a life insurance policy on the part of the payor to protect alimony and child support payments but that can also be a bone of contention to the ex who already may object to impending monthly payments. Adding another expense could stall negotiations and drag out the divorce.
A better option might be for the recipient to take out a life insurance policy on the payor. Yes it may feel a bit strange to have a life insurance policy on your ex, but you have the advantages of knowing what the policy covers, ensuring the premiums are paid, and naming yourself as the beneficiary.
Death is not the only problem. A serious disability could prevent the ex from working and a court might decide to void the divorce settlement in light of the payor's new financial state. The recipient should also consider taking out a long-term disability policy to cover this eventuality as well.
How large a policy should be taken out? Family law attorneys can use divorce settlement software to calculate how much an alimony or child support agreement is worth in a lump sum. Recipients can shop for policies that cover this amount and decide for themselves if the cost is worth the peace of mind that comes from financial security. A large policy can be an unnecessary monthly expense while a small policy won't provide the money needed should the ex-spouse die or become disabled.
Family law attorneys use legal practice management software to automate and simplify the divorce negotiation process, but it's not all just numbers on the spreadsheet. Contact Easy Soft to find out additional creative ways our software tools protect attorneys and clients from unforeseen events.