When two parents go through a divorce, issues related to their shared children can be among the most emotionally-charged matters at play. Child custody and visitation are often in contention, as is the manner in which the child or children will be cared for financially. Child support is an important topic for many Texas parents, but quite a few divorcing parents fail to give insurance proper consideration.
If the custodial parent relies upon child support to provide for a child's needs, then it is very important that those payments are made as planned. For some, fears about missed payments are minimal, as both parents feel confident that each will do what is right for the children. However, what happens if one parent passes away before the children are adults?
This is where insurance comes into play. If the spouse who is tasked with paying child support is properly insured, then the children will be provided for in the event of an untimely death. That can mean the continuation of a good education, tutoring, child care, sports participation and enrichment activities.
The best time to address insurance is during divorce and child support negotiations. That allows the cost of an insurance policy to be worked into the larger financial scheme of things. In many cases, Texas parents can agree that obtaining the proper level of life insurance is an important preventative measure to take. It should also be noted that life insurance can be used to replace the value of spousal support payments, as well.
Source: CNBC, "Headed for divorce court? Here are your top 5 financial musts", Andrew Osterland, Dec. 22, 2016