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Consider the issue of insurance in a divorce

On Behalf of | Mar 11, 2020 | High Asset Divorce

Texas divorces are not as simple as settling details of custody and property division. The issues in these divorces go beyond that as there are things such as life insurance to consider. This can actually present complicated questions that can slow finalizing a divorce. Sometimes, the details that seem minor are actually the tough ones.

In most divorces, there is a realization that provisions need to made in order to support the children if one spouse passes. Thus, one or both parents either takes out or continues a life insurance policy. However, the value of the policy is often a question. Divorcing couples need to look far into the future and approximate the costs of rearing the children, including things such as college tuition. The same calculation is necessary if one spouse is paying alimony to the other.

Other insurance considerations include how much a life insurance policy will cost in the future. It might be difficult to agree on a certain level of coverage without knowing what the premium would be in the future. As people get older and their health situation changes, life insurance policies cost more. It would be tough to mandate a level of coverage that one spouse simply could not afford as the price elevates.

For help with high net-worth Texas divorces talking to an attorney might be helpful. The lawyer could advise clients of different solutions to the issue of life insurance and may be able to negotiate a solution to an issue that could be keeping the divorce from becoming final. Oftentimes, people do not have the knowledge to be able to understand and solve these problems on their own, and this is where an attorney may be able to help.