Life insurance is an important issue to consider in a divorce proceeding, for a variety of reasons. For instance, if you are the spouse who will receive child support or alimony, you will want protection for that support should something happen to the other spouse. Requiring the providing spouse to obtain and maintain a life insurance policy in a certain amount is a good way to protect that support.
Georgia law specifically provides for a provision about either or both spouses maintaining life insurance policies in divorces. O.C.G.A. 19-6-34 provides that “the court may include in the order of support provision for life insurance on the life of either parent or the lives of both parents for the benefit of the minor children. The court may order either parent or both parents to obtain and maintain the life insurance.” After the child reaches the age of majority, whichever parent was to maintain the life insurance is no longer required to do so, and is no longer required to keep the insurance policy proceeds available as a benefit for the adult child.
It is important to keep in mind, however, that the requirement that one or both parents maintain a life insurance policy can directly affect the amount of child support that a parent is ordered to pay. Under O.C.G.A. 19-6-15, the amount of a life insurance premium can be a deviation to the presumptive amount of child support ordered in a Georgia divorce case. However, in considering such a deviation, the court must review the amount of the life insurance premium for reasonableness, under the circumstances of the case, as well as the best interest of the child.
In many cases, your divorce settlement agreement can contain a provision that requires the spouse who is providing the support to maintain a life insurance policy. This policy should have a face value sufficient to make support and/or alimony payments, if necessary, when the proceeds are deposited into an investment account. Taking this step helps ensure that the children will receive support and/or the former spouse will receive spousal support as ordered, even if something should happen to the spouse providing the support.
Shaw Law Firm LLC has handled countless divorces involving all types of insurance, including the provision of life insurance policies as protection for child or spousal support. We have the knowledge and understanding of this aspect of divorce that is necessary to effectively handle these types of cases on behalf of our clients.
Contact us or call today to learn how Shaw Law can work with you to achieve the best outcome possible for you and your children.
Scott Shaw is founder and principle of Shaw Law Firm LLC, founded in 1995 and dedicated solely to divorce, family law and child custody matters that must be addressed and decided in the state of Georgia. Shaw Law Firm serves the greater Metro Atlanta area, particularly the counties of Fulton, Gwinnett, Cobb, Cherokee, Forsyth, Paulding, Henry, Fayette, Coweta, Newton, Walton, Bartow and Douglas. Schedule a consultation today at 770-594-8309.