Financial Mistakes Divorce Mediation Couples often make and how to avoid them.
One such mistake regarding divorce and insurance benefits is failing to secure spousal support (alimony) and child support payments with insurance.
Pension Plans and Divorce
Suppose you pay or receive any form of support, such as child support and/or alimony, or receive retirement benefits under certain pension plans. In that case, your ability to collect such support or benefit is only as good as your spouse’s ability to pay. Many things can happen in the future, loss of jobs, sickness, relocations, and even death.
Suppose the focus is only on the immediate task of splitting assets and getting alimony and child support, without understanding how things might look in 5, 10, or 20 years. In that case, spouses can be faced with financial turmoil later on.
Request that Your Spouse Obtain Disability and Life Insurance Policies
When looking at divorce and insurance benefits, you can request that your spouse obtain disability and life insurance policies (or modify existing policies) to ensure child support and alimony payments will continue in the event of your spouse’s disability or death.
The same applies to certain pension benefits
In some circumstances, if the Plan Participant dies, the spouse receiving the benefits receives $0. This is the case with the State of Connecticut Pension and CT Teachers Retirement Plan, for example. A divorce mediation attorney with a primary focus or expertise in family law can avoid costly mistakes. Be sure to review the policies to ensure your spouse has made the proper designation(s). Spouses can give one another authorization to confirm the continuity of life insurance or disability coverage beyond divorce.
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To learn more about how divorce mediation can help your case, contact any of our Divorce Attorney Mediators or Certified Divorce Financial Analysts at CT Divorce Mediation Centers. Divorce and Family Mediation and Collaborative Law are all we do. We have offices in Madison, New Haven, Cheshire, West Hartford, Glastonbury, West Hartford, and Windsor, CT. To find out more information or to schedule a consultation with our divorce experts, call us at (860) 986-1141.
DISCLAIMER:This publication is not meant to constitute legal, accounting, financial, investment advisory, or other professional advice. If legal, financial, investment advisory or other professional assistance is required, the services of a competent professional person such as CT Divorce Mediation center, should be sought.