Joint life insurance policies typically need to be modified or replaced following divorce proceedings
When couples divorce, their joint life insurance policies require careful review and potential restructuring. The policy may need to be:
- Split into separate individual policies for each former spouse
- Modified to change beneficiary designations
- Adjusted to comply with divorce settlement agreements
- Cancelled and replaced with new individual coverage
It’s essential to work with both your insurance provider and legal counsel to ensure proper handling of policy changes. Some divorce agreements may require maintaining life insurance coverage to secure child support or alimony obligations. Making these adjustments promptly helps protect both parties’ financial interests and ensures compliance with legal requirements.