Divorce can come with a lot of changes, but one that people often don’t think about is updating the beneficiaries on their retirement and life insurance policies. If you don’t update your will, life insurance or retirement policies, then your money could go to your ex-spouse and not to the children upon your death. If you’re not sure what to do, consult with your divorce attorney or mediator.
Often, the first step is to contact your company’s customer service department and request a beneficiary change form. You will need to provide information about both spouses, as well as a copy of the divorce decree or death certificate. The new beneficiary form must be signed by both spouses and notarized in order for it to be accepted by the insurance company. You should also review your existing will and make any updates there as well. You want to make sure that your children are the beneficiaries of your policy and not your ex-spouse.
Divorce is a difficult process for most couples. It can be especially hard for those who have to make decisions about their retirement and life insurance. According to a study by the Employee Benefit Research Institute, divorcees are more likely to retire later than their married counterparts. This is because many of them have less retirement savings and fewer pension benefits.
Another issue that may arise after the divorce is life insurance coverage, as well as health insurance coverage. The spouse who has been covered under the other’s policy will now need to find their own coverage or purchase a new one through an agent or company. It’s important for both parents to carry life insurance to ensure their children will be able to take care of themselves upon the death of either parent.
C4 Legal Assistance can help you prepare and file any type of legal paperwork. Call us today for a free consultation at 805-585-3828.