If you’re getting divorced in Texas and you have children, you may be required to obtain life insurance to ensure that child support payments continue if you pass away. Understanding the intricacies can be essential when you’re in this position.
Circumstances requiring you to obtain life insurance during a divorce
Getting divorced with children will likely require you to pay child support if you are the parent who makes the most money. If you pass away, your kids’ monetary support will stop immediately. To ensure that your children are protected, a judge can order you to obtain life insurance to ensure that this obligation is secured.
Calculating the amount of child support needed
When considering using insurance to protect the welfare of your children during a divorce, several issues must be addressed. These can include the following:
– Does either parent need work-related childcare?
– Are there unreimbursed medical expenses?
– Is a child involved in expensive extracurricular activities?
– What is the age of the child during the divorce?
– If children go to college, what will be the cost of a four-year school?
Designating a beneficiary for life insurance during a divorce
Knowing who to name as a beneficiary for life insurance is also an essential factor when it is required during a divorce. Naming the remaining parent can often be used. However, this can cause discourse with the opposing spouse. Naming children as beneficiaries can be challenging too, especially if they’re minors. These other factors must be examined closely.
Looking at the consequences of having children during a divorce will help protect their welfare. In this situation, knowing how to handle life insurance can be essential, especially if the court system dictates it.