“I’m getting a divorce.” When one hears that statement, the first thought that frequently comes to mind is prepare for an emotional roller coaster and all the expenses that come with it. Every divorce is emotionally and financially challenging when considering all the time and effort poured into a marriage, from shared love and memories to invested property and assets. When facing separation and its numerous aspects, insurance coverage is an important issue that’s often overlooked. Here is a breakdown of what to look for in commonly shared assets:
- Auto insurance. Notify your insurer of any changes to the ownership or designated drivers, especially if you’re separating policies. If your former spouse will continue to pay for your coverage, be sure the insurer has your contact information in case payments fall behind. For joint custody over teen drivers, have them added to both policies. Otherwise, they should be listed on the policy of whoever has sole custody.
- Home insurance. The primary or mortgage owner should be the only person listed on the homeowners policy. If the house is still jointly owned, then both homeowners would still be listed on the insurance policy regardless of who is occupying the house. If one person decides to remove themselves and opts for renting, consider renters insurance. It not only covers your new residence, but also the assets inside. This is especially crucial if your items are damaged while moving residences.
- Life insurance. Listing your spouse as the primary beneficiary is very common as it helps cover financial obligations in your absence. However, there are good reasons that you may want to leave your former spouse as your beneficiary, especially if you have children together. In the event of death, the policy can provide financial assistance for things like college, alimony or child support.
Going through a separation is a difficult and challenging transition. With all of the nuances involved in the process, it can be hard to make sound financial decisions. We know it isn’t easy–let us do the heavy lifting to help set you up for your new beginning. Connect with us if you or someone you know could benefit from our assistance.
This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.