The role of life or disability insurance in alimony

by | Apr 10, 2019 | Alimony |

When California spouses have unequal incomes or earning potential, a divorce court order might include spousal support. This might result in a permanent obligation for one former spouse to pay the other former spouse or a temporary support arrangement known as rehabilitative maintenance. Because low-earning former spouses might rely on this income, the agreement could require a payer to purchase life and disability insurance to cover the expense in the event of death or disability.

Although death ends a spousal support obligation, the parties might want to prepare for financial security in case the payer suffers an untimely demise. A life insurance policy solves this problem as long as the person is able to obtain a policy. Similarly, disability insurance provides a payee with peace of mind in case a payer becomes unable to work because of an accident or illness.

Not all divorces end up with alimony orders. Family courts weigh multiple factors before approving spousal support. Length of marriage and marital lifestyle contribute to decisions as well as a recipient spouse’s level of financial need and the payor’s ability to pay. Their age and health could influence a court’s decision. Non-marital assets and the presence or absence of minor children might play a role in the final decision as well.

The results of a judge’s ruling could be vital to a person’s future financial comfort. Whether a person expects to pay spousal support or receive it, the representation of an attorney could guide a court toward an fair decision.