Those who come to see us here at The Law Office of Roland R. Esparza, P.C. as they prepare for their divorces in San Antonio often have their minds preoccupied with traditional divorce-related matters such as child support, alimony and property division. If this describes your current scenario, then your preoccupation is understandable. It is important to remember, however, to not overlook one other important aspect of your life that will most certainly be affected by your pending divorce: your life insurance. The Insurance Information Institute reports that 60 percent of all Americans are covered under some form of life insurance plan. Yet many forget to address this topic during their divorces.
You might assume that any claim your ex-spouse may have to a life insurance benefit for which you are the policy holder would automatically end with your divorce. You would be wrong. If he or she remains listed the beneficiary on your policy, he or she would be given the benefit upon your death. This is true even if you amend your will and state that your life insurance proceeds should go to someone else.
Thus, once your divorce becomes final, you should review your life insurance policy to make any necessary changes in light of your new situation. Be aware, however, that it may still be in your best interest to leave your ex-spouse as the beneficiary in certain situations. If you owe child support or alimony payments, for example, then it may be wise to maintain a life insurance benefit that would pay off those obligations in the event of your death. Otherwise, your ex-spouse may be entitled to collect that from your estate assets.
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