Cindy Allen & Associates PLLC

Phone: 405-310-8673

map map google linkedin

Understanding divorce and disability insurance

Many Oklahoma divorces involve agreements for one spouse to pay child support or alimony to the other spouse. Due to income disparities and childcare needs, the recipient spouse usually relies heavily on the financial support provided by the payor. If anything happens to the payor to disrupt the flow of their income, the recipient spouse could be left in dire financial straits.

To prepare for the potential of the payor spouse's death, courts often order that divorcing spouses take out a life insurance policy on the payor spouse. Spouses may also purchase a divorce and disability insurance policy to protect themselves against the possibility of the payor spouse becomes disabled. This type of insurance is specifically designed to honor a divorce decree in the event that the payor spouse unable to earn income because of a disability.

Some individuals may already have a personal disability insurance policy or a disability insurance policy from work. These policies usually only ensure that a person will receive between 40 and 60 percent of their income should they become disabled. If this is the only coverage that a person has, they will have to petition for a reduction in their financial obligation to their ex-spouse after becoming disabled. Divorce and disability insurance, on the other hand, can ensure that the same payments continue to be made to the recipient spouse after the payor becomes disabled.

A divorce attorney may be able to obtain quotes for divorce and disability insurance coverage and present these quotes during negotiations. An attorney may also help a spouse to negotiate for an agreement about who will pay for the insurance coverage. If a spouse is involved in a high-asset divorce with obligations over $1 million, an attorney may be able to help the spouse with the underwriting process.

No Comments

Leave a comment
Comment Information