Life Insurance and Divorce in Georgia: FAQs from a Gwinnett County Divorce Lawyer

Life insurance is a financial protection tool, one that will provide your heirs with the financial resources they need should something happen to you. Life insurance and divorce in Georgia can be confusing. If you were the beneficiary, you may no longer be, and, in some cases, it may be necessary to update your own life insurance documents.

To help you navigate this process, turn to Attorney Sharon Jackson LLC. Let us provide you with insight into life insurance and child support in Georgia. The following are some of the most frequently asked questions we receive about Gwinnett County's divorce with life insurance.

FAQs About Life Insurance and Divorce in Georgia

✔️ Is Life Insurance Considered a Marital Asset in Georgia?

Under Georgia law, any type of life insurance policy obtained during the marriage is considered marital property. That means it is subject to equitable division like any other asset in your case. If the life insurance policy has a cash value to it, which many whole life policies have, then it is a marital asset that must be divided according to the law. So, is life insurance a marital asset in Georgia? It can be, depending on a variety of factors.

✔️ Can My Spouse Be Ordered to Maintain Life Insurance After Divorce?

In some situations, it can be hard to obtain life insurance after your divorce, especially if you are older. You may want the court to require that the spouse that is currently providing life insurance policies for you to maintain them even after your divorce.

A judge can make this decision, and they are likely to do so if your divorce decree includes child support or alimony. In these situations, maintaining life insurance could be critical to preserving your financial well-being when your ex-spouse is providing for your financial needs.

However, if you are trying to cover your ex with life insurance, and there is no financial requirement present (no alimony being paid), the court may not allow life insurance to be maintained. Divorce and life insurance policies may have to align as well since some life insurance companies may not allow for a spouse to maintain coverage on an ex.

✔️ Who Gets the Life Insurance Payout in a Divorce?

Life insurance provides a payout at the time of the covered policyholder's death. This payment is made to the person named as the beneficiary on the policy. No matter what, it is going to that person.

If you have a life insurance policy in place that lists your ex-spouse, you should change the beneficiary right away. Doing so is a core component of the steps you need to take post-divorce to protect your financial future. If you fail to update this information, and your spouse remains named on the policy at the time of your death, they receive these funds.

✔️ How Does Life Insurance Affect Child Support and Alimony?

Having life insurance does not change the requirements to pay child support and alimony according to the requirements set by the law. However, having a life insurance policy in place can help to protect the spouse or children should the parent paying those funds die unexpectedly.

In other words, by having life insurance in place for the party that is providing financial support to you or your children, you gain a bit of peace of mind. If that parent passes away, the death benefit can help to cover those costs in the future. Note that even if you are younger and your spouse is healthy, having this type of financial tool in place to protect your financial future and that of your children could be essential when the unexpected occurs.

✔️ Can a Divorce Settlement Require a New Life Insurance Policy?

The courts will sometimes order an ex-spouse to purchase a new life insurance policy within a divorce decree. This does not happen in every situation. However, it may be determined necessary to protect the party receiving alimony and the children receiving child support. Some courts will require this additional investment as a type of financial safeguard and make it a component of the division of assets.

✔️ What Happens If My Ex-Spouse Stops Paying for Court-Ordered Policy?

Divorce and life insurance policies go hand-in-hand today. Just like any type of court order, if the ex-spouse stops paying on the life insurance policy, they can be held in contempt. This can become challenging since nonpayment can lead to immediate cancellation of a life insurance policy.

If you suspect that your spouse will stop making payments or has done so, it is critical to seek legal support right away. Your attorney will work to determine what legal steps may be necessary to keep the policy active or to recover another policy should it lapse.

✔️ How Can I Protect My Life Insurance Benefits in a Divorce?

Life insurance and child support in Georgia are financial tools that allow you to build a strong financial future. Taking steps to protect them is critical. Consider the following:

• Review all life insurance policies before and after the divorce.
• Update your policy to reflect the party you wish to receive the death payment on any policy that you have in place for yourself.
• Work with your attorney to ensure that fair division of assets occurs even if there is a cash value component to your life insurance policy.

✔️ Should I Consult a Lawyer About Life Insurance and Divorce?

Both life insurance and divorce in Georgia are critical factors that could play a role in your financial future. You certainly want to work with a knowledgeable Gwinnett County divorce attorney who will tell you what your rights are based on the individual circumstances of your case. This may include petitioning the court to require the maintenance of such policies as well as the requirement to put a life insurance policy in place.

Seek out the legal guidance you need today from Attorney Sharon Jackson, LLC. We can answer any questions you have about your rights to fair compensation. Contact us now by calling (678) 436-3636.