When Arizonans decide to get divorced, they might have to deal with property division, spousal support, child custody and child support. Once they have worked out agreements about each of these issues, they might also want to think about life insurance in case the higher-earning spouse dies following the divorce.
A higher-earning spouse who will be making alimony payments to the lower-earning spouse after a divorce might learn how long he or she will likely have to continue making the payments from his or her attorney. A lawyer may make an educated guess about the duration that the payments will be made. The spouse who will receive the payments might want to negotiate with the payor spouse for him or her to purchase term life insurance for the total amount of alimony over its duration. If the payor spouse dies, the recipient will then still receive the money that he or she would have received during that time through alimony.
Parents of minor children might also want to consider life insurance policies to provide for them through college. They can calculate the total amount of child support that they would have paid and get term life insurance policies for that policy amount. Purchasing life insurance can help to ensure that the ex-spouse and children will be provided for in the event of an unexpected death.
A person who is going through a high-asset divorce might want to retain an experienced divorce lawyer. An attorney may review all of his or her client’s finances and advise him or her about the potential impact that the divorce might have. The lawyer may negotiate with the other spouse to try to secure an agreement that will protect his or her client if the other spouse dies unexpectedly after the divorce is final.