Divorce & Your Life Insurance Policy: Should you remove your spouse as beneficiary?

When you get divorced says Mark Eghrarl who writes for Forbes Magazine, you have to change everything. This includes the beneficiary of your life insurance policy. It makes sense. If you are divorced from this person why would you want them to continue to be the beneficiary if and when you die? “Well, it depends on how you look at it,” says our editor in Chief Marion TD Lewis, a former practicing divorce attorney in NYC.  “What if you have young children who need child support and college tuition and things like that? If you pre-decease your spouse and the children are still under the age of majority, it could make all the difference in the children’s lives if you, as their only living/surviving parent, have access to these funds from the insurance.”

This makes intuitive sense. And I do believe Mr Eghrarl makes this point in his article. It really is about your intent. If your intent is for your spouse never to get a penny of your life insurance money, then as soon as you divorce you had better make that adjustment on the policy itself. Do not think “oh, it says in the divorce decree that the policy goes to my children,” as that may not be enough. You have to change the policy itself. But if your intent is for the spouse to remain the beneficiary, even in trust for the children’s benefit, then obviously, don’t change the documents.

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