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Remember life insurance in a divorce agreement

In a Colorado divorce, people will often focus exclusively on things such as property division or custody. When those issues are settled, people often feel as if the divorce is on its way to being final. However, there are other issues that people do not anticipate that can also require some forethought and negotiation. One of these is life insurance.

After the divorce is final, one or both parties may be obligated to maintain a life insurance policy. How much insurance they must maintain is often a difficult determination to make. The parties may have difficulty forecasting how much would be needed to raise the kids. Thus, they may have trouble figuring out exactly how much insurance is necessary.

For a party that must pay the premiums on a policy, life insurance is not exactly a set cost. While the cost remains the same over the life of the policy, they may need a renewal or two before the children are grown. It is a fact that premiums go up the older that one gets. They may even have trouble qualifying for a policy if their health situation changes. All of this requires some degree of planning and negotiation before the divorce agreement is signed because this is the one opportunity to reach a binding legal agreement.

For advice about life insurance during and after a divorce, one would turn to a divorce attorney for suggestions about how to handle the difficult issues that are presented. The attorney might offer suggestions as to the various approaches that could work for their client. Then, they could help negotiate a settlement agreement that incorporates the advice. Parties to a divorce may be too wrapped up in the matter to anticipate and deal with contingencies and details such as life insurance.

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