When addressing child support in the context of a Georgia divorce proceeding,
insurance needs are an integral component. Where one party in a divorce
agrees or is ordered by the court to pay child support, it is important
to consider what will happen should that parent die while the children
are still minors.
One idea that is gaining popularity between divorcing couples is purchasing
a term life insurance policy that will ensure the children's needs
are met in the wake of losing a parent. Many divorce agreements contain
such a provision. Without that protection, the death of a person providing
support may mean there will be no further contribution to the expenses
of the children - which can affect whether the children can enjoy the
activities they were once accustomed to doing when both parents were contributing
to their care.
The person who is obligated to provide support normally establishes a term
policy with the proceeds paid for the benefit of the children in trust.
Once the children have turned 18, or as otherwise defined under the divorce
agreement, the owner of the policy can change beneficiaries or convent
the policy for other use as is deemed fit. Of course, should the party
desire, the policy can be canceled once the use for its creation is no
longer an issue.
These matters ought to be discussed with your Georgia divorce and family
law attorney so that he or she can help decipher the policies. Copies
of the policies, where available, will be helpful. Once a determination
is made about the value of each policy and the perceived equitable division,
the matters may be negotiated for settlement or left to the court's
determination in a contested divorce.