In most Michigan divorces, couples focus on the major issues such as custody and the division of the marital estate. However, it’s wise to consider all parts of the divorce agreement. Matters such as life insurance are important and not necessarily simple to handle.
Life insurance, by its nature, involves forecasting things in the future. One of the most important things to figure out is how much coverage is necessary. It may be difficult to know what the expenses of raising children will be in the future. At the same time, it can be burdensome on a parent to maintain too much life insurance coverage since it costs money. The same considerations are present when there is alimony instead of child support.
There is also the uncertainty about how much life insurance will cost in the future. If the divorce agreement mandates a certain amount of coverage, it could double in cost as the insured gets older and a policy renewal is necessary. There may even be a situation where one develops a health condition and they are not able to obtain a policy renewal. These are all issues often overlooked and the time of the divorce but difficult to address at a later point in time when things have gone wrong.
A divorce attorney can help a client understand all the important details in a divorce. Many soon-to-be ex-spouses will be understandably distracted with a number of major issues and life changes. However, an attorney could look out for the best interests of the client. This may involve addressing life insurance, which is generally not as simple as it seems on the surface.