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Life insurance in divorce can be confusing at times

| Jun 9, 2020 | Divorce |

There are many things on the table when a couple’s marriage is not longer working and they decide that it’s coming to an end. Divorce brings with it many decisions New Jersey couples have to make about their separation and forging ahead as singles. But things could get dicey down the road if changes were never made to some important documents like life insurance policies.

As it stands, New Jersey automatically revokes a former spouse as a beneficiary of life insurance in a divorce. There are exceptions to that law such as if a prenuptial or postnuptial agreement states otherwise or if there are children and one or both people agree to maintain life insurance when there are support obligations like child support or alimony. If a former spouse with a life insurance policy remarries and then dies, but still has the former spouse and minor children of that marriage as primary beneficiaries on that policy, the current wife would likely not have a claim to the insurance.

That especially bodes true if the holder of the policy still had support obligations from the first marriage. In many instances, life insurance is continued after divorce. It serves as assurance that children or a dependent spouse — or both — get financial support they would have got if the payer had not died. It can get pretty complex depending on the circumstances. 

When it comes to life insurance and divorce, each case could be different. That is why it is important to get the input of a New Jersey divorce attorney in these complex instances. A lawyer will ensure no stone is left unturned and will review all the details.

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