Life Insurance

Live Forever or Die Trying: Life Insurance After Divorce

Live Forever or Die Trying: Life Insurance After Divorce

In many divorces, the issue of life insurance can be overshadowed by more immediate concerns, such as the division of the marital estate, parenting time, spousal support (“maintenance”), or child support. However, the proper handling of life insurance policies can ensure predictability for both spouses and peace of mind that children will be raised in a financially stable environment until they become adults.  Types of Policies Many types of life insurance policies, including whole life and universal policies, accumulate cash value over the life of the policy. Prior to payment of the death benefit, a portion of each premium payment becomes accessible to the policy owner as the cash value. In Colorado, an insurance policy with cash value that has built up during the marriage is considered an…