I am thinking about getting a divorce. Should I make any changes to the insuranc

I am thinking about getting a divorce. Should I make any changes to the insuranc

By Brandi Ruffalo
July 19, 2010
IL FAQs/Insurance

"I am thinking about getting a divorce. Should I make any changes to the insurance policies I have which says that my spouse is my beneficiary? And, when should I make that change?"

The owner of a life insurance policy can change the beneficiary at any time. However, the divorce process may lead to different outcomes for your policies. For example, whole life policies with cash value may be considered martial assets subject to division. Additionally, if you have minor or college age children, the court or your settlement may require you to maintain a life insurance policy to guarantee their financial security. Therefore, it may be wise to not make any changes to the policy until the final divorce settlement is stipulated.

While your reaction upon filing for divorce may be to change the beneficiary on a policy, you may want to consider the original purpose of the policy. Perhaps the policy was taken out to protect the financial future of your children, who will be under the care of your ex-spouse. If that is the case, you may realize that keeping your spouse listed as the beneficiary is still accomplishing the ultimate goal of the policy. Establishing your priorities and your plan to achieve them may require you to step back and assess the situation. A consultation with a certified divorce financial professional can often help you establish a plan for your financial assets during and post divorce.

Brandi Ruffalo is a financial divorce advisor with Valuation & Forensic Partners, LLC in Chicago and Schaumburg in Illinois. She specializes in basic lifestyle and financial analyses to the valuation of private businesses or stock option. She can be reached at (847) 805-1910, or (312) 212-4370, bruffalo@thebdc.comwww.financial-divorce.com. Please view her Divorce Magazine profile.

Back To Top

July 19, 2010
Categories:  FAQs

Add A Comment


Allowed HTML: <b>, <i>, <u>, <a>



Divorce Lawyers

Certified Divorce Financial Analyst

Find all CDFAs

Divorce Mediators

Find Divorce Mediators

Business Valuators / CPAs

Find Business Valuators / CPAs

Collaborative Practice

Find Collaborative Practitioners

Reason for your Divorce

Why did your relationship end? If there's more than one reason, choose the strongest factor.

Money Problems/Arguments
Physical/Emotional Infidelity
Physical/Mental Illness
Physical/Emotional Abuse
Alcoholism/Addiction Issues
Basic Incompatibility

Copyright © 2017 Divorce Magazine, Divorce Marketing Group & Segue Esprit Inc. All rights reserved. Reproduction in whole or in part without prior written permission is prohibited.