Any amount of money being asked of either party involved in a family law matter may be reason for question or resentment. As such, it is important to understand the reasoning behind a request or requirement for life insurance in divorce or paternity matters where support is being paid from one party to another.
When support is a component of a final judgment or a settlement agreement, the receiving party has an expectation of that amount of income. If the paying party dies, the that income is lost. Therefore, many final judgments and settlement agreements will contain a provision that the paying party must maintain a life insurance policy to protect the amount of support being paid. The provision will include language that the policy must name the receiving party as the sole beneficiary of the policy. This is truly the only way to ensure the continued support in the event of the death of the paying party.
Life insurance is one of the many questions clients will have when they are involved in a divorce or paternity matter. It is important to work with an experienced Orlando attorney who understands not only the law, but the concerns of his clients. Attorney Wade P. Luther has been helping family law clients in Orlando for over a decade. Contact Family Law of Orlando today by email or by calling (407) 835-9900 to schedule an initial consultation with Attorney Luther.