Life Insurance Policies on Ex-Spouses: Can and Should a Divorce Court Allow These?

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Spousal Support Can Be Secured With A Life Insurance Policy

life insurance policy spousal supportIn today’s world, it is not uncommon for married spouses to take out life insurance policies on one another.  Of course, if you’re happily married, you hope and pray that you’ll never be in the place of having to cash one in.  Nevertheless, such policies provide some “peace of mind” that should the unthinkable happen, the financial burden caused by such a tragedy may be a little easier to bear.

So, having a life insurance policy on your spouse makes sense, right?  But what about having a life insurance policy on your ex, or soon-to-be ex-spouse? Can and should a divorce court allow this?

Many people would argue that in divorce cases where child support or spousal support is ordered, it is smart to have a life insurance policy in place on the parent who is obligated to pay. By doing so, it ensures that the children or receiving spouse will be supported even if the other spouse dies.

Therefore, it is fairly common for a spouse who wants to guarantee support, to request that their soon-to-be ex-spouse carry a policy naming them as the beneficiary.

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