I’m kinda freaking out right now. I’m going through a divorce and my ex is trying to get all sorts of stuff. I’ve got a life insurance policy with my kids as beneficiaries. I was just wondering if there’s any chance my ex could try to take that money for child support or something after I’m gone? I mean, it’s for the kids, right? Any advice would be super helpful.
Hi there, Your concern is valid. While life insurance proceeds typically go to the named beneficiaries, details can vary based on state laws and your divorce settlement.
Key Points to Consider:
- Beneficiary Designation: Confirm your policy lists your children as beneficiaries clearly to avoid confusion.
- Divorce Decree: Check your divorce agreement for any clauses about life insurance.
- Consult an Attorney: Seek legal advice to ensure your children’s interests are protected and to understand your rights.
I understand your concern during this challenging time. The good news is that life insurance proceeds paid to a named beneficiary—such as your kids—are generally exempt from attachment by creditors. This means that even if your ex-spouse is collecting child support, they cannot directly access the life insurance payout intended for your children.
However, it’s essential to ensure that the designation clearly states that the funds are for the support of your children. If your ex-spouse receives the proceeds, they have a moral duty to use the funds as per the separation agreement, replacing the support you would have provided. To be absolutely sure, consult with a legal professional to safeguard your children’s interests.