When spouses divorce, the higher earning spouse may be ordered to pay alimony or, if there are children from the marriage, child support. Because children in particular depend on the financial support of their parents, many wonder what happens in the event of a payor’s untimely death – is there a way to protect the recipients of support if they find themselves in this difficult and unexpected situation?
Fortunately, the law governing support allows the court to order a spouse or parent who pays support to secure life insurance to cover support obligations. It is important for anyone who is receiving support to include a provision for life insurance in their divorce settlement agreement.
How Much Insurance Should a Parent Paying Support Get?
Those ordered to pay child support often are required to take out life insurance policies to cover what a parent is ‘expected to pay’ until their child reaches the age of majority or graduates from high school derived from a standard child support calculation. Beyond that, policies may also include additional coverage to provide for expenses such as unreimbursed medical expenses, child care, or even college tuition.
Life insurance to cover alimony can be calculated using the court ordered amount multiplied by the number of years an ex-spouse is entitled to receive support. However, some payors take out shorter terms with the option to renew annually to avoid an overpayment as the support obligation terminates at the death of either spouse. Every situation is unique and it is helpful to work with your attorney to ensure you are protected.
Contact Our Waukesha & Milwaukee Family Law Team for Help
With a combined 70 years of family law experience, our team offers quality representation at affordable prices. If you have questions regarding child custody, spousal support, or any family law matter, please contact our family law attorneys today for a free consultation at 414-210-3135.