914.946.0848  .  contact  .  map & directions  .  subscribe  .  LinkedInFacebookTwitterGoogle+

Insuring That Your Children Have the Support They Need — Part I

October 26, 2018  | 
Insuring That Your Children Have the Support They Need - Part I

{4:00 minutes to read} Life insurance is not a topic most people are eager to speak about, let alone if you are separating. But life insurance is a topic you should be prepared to discuss in your mediation.

Under New York law, a judge may order a party to obtain and maintain life insurance coverage naming as beneficiaries either the children (for child support) or the spouse (for maintenance) for so long as the party is obligated to pay child support and/or maintenance.

While you don’t have a judge making orders in mediation, you do want to be sure that there are provisions for life insurance in your agreement if spousal or child support are being paid.

Here are some things for you to consider:

Naming the beneficiary

For maintenance (spousal support), the beneficiary designation is easy — it would be the spouse, in an amount that will cover the balance of the maintenance payments that are due.
 
For child support, the beneficiary designation is a little more complicated: 
 
  • Your spouse needs access to the life insurance proceeds because he or she will no longer have your contributions towards the support and care of the children for their direct and indirect expenses.

However, you may not feel comfortable naming the spouse as beneficiary. And even if you have the utmost trust and confidence that the spouse will use those funds solely for the children, unexpected things could happen, such as if your spouse remarries without a prenuptial agreement or dies without appointing someone to take care of the children — and the funds meant to support them. Events of this type would put those funds at risk. 

  • You wouldn’t want to name minor children as beneficiaries of large sums of money for obvious reasons. Moreover, Surrogate’s Court would appoint a guardian to oversee any money they receive, and that guardian will need the permission of the court in order to use the money. This means your spouse may not be able to access those funds for day-to-day expenses when needed. 
  • One alternative could be to designate your spouse as the custodian of a Uniform Gift to Minors Act (UTMA) account. The money would belong to the children but be under the control of the spouse until the children reach age 21, at which time the custodian would need to transfer the funds to the child. 
  • Another alternative, by which you could exercise more control over the use of the funds and keep them in trust until the children are older than 21, would be to create a life insurance trust. Appoint your spouse as trustee to manage and use the funds on behalf of the children, including the ability to use the proceeds to the extent that you would have been obligated to pay child support and other expenses on behalf of the children.

In Part II, I will address options if you are unable to obtain life insurance and why it’s important for both of you to have it, even if only one of you is paying child support. 

Clare Piro Attorney and Mediator

Attorney & Mediator
500 Mamaroneck Avenue | Suite 320
Harrison, NY 10528
Tel: 914.946.0848

Email »

Comments

Search
Topics
Mediation (141) | Divorce (132) | Separation (49) | Divorce Mediation (19) | Mediator (13) | Child Support (11) | Communication (11) | Litigation (11) | Separation Agreement (10) | Conflict (10) | Co-Parenting (8) | Attorney (7) | Consultation (7) | Parenting Plan (7) | Prenup (7) | Marital Home (6) | Clare A. Piro Mediation (6) | Collaborative Divorce (6) | Clare A. Piro (6) | Parenting (6) | Children (5) | Assets (5) | Finances (4) | Family (4) | Equitable Distribution (4) | Marital Property (4) | Expenses (4) | CSSA (4) | Child Support Standards Act (4) | Separate Property (4) | Settlement (4) | Marital Assets (4) | Agreement (4) | Clients (3) | Relationships (3) | Spousal Trust (3) | Parent Coordinator (3) | Estate Documents (3) | Divorce Mediator (3) | Divorce Coach (3) | Responsibility (3) | Joint Decisions (3) | Informed Decisions (3) | Prenuptial Agreement (3) | Divorce And Children (3) | Child Consultant (3) | Child Inclusive Mediation (3) | Financial Professional (3) | Divorce Agreement (3) | Divorce Finances (3) | Negotiation (3) | Emotions (3) | Clare Piro (3) | Family Court (3) | Blended Families (3) | Compromise (3) | Listening (3) | Mediation Myths (3) | Apology (2) | College Expenses (2) | Inheritance (2) | Fairness (2) | Selling The Marital Home (2) | Estate (2) | Right Of Election (2) | Surviving Spouse (2) | Separation Agreements (2) | Law Professionals (2) | CDFA (2) | New York Child Support Statute (2) | Budgets (2) | Entitlement (2) | Equal Parenting Plan (2) | Collaborative Practice (2) | Pandemic (2) | Humanity (2) | Grace (2) | Spouse (2) | Child Support Standards Act (CSSA) (2) | Moving Forward (2) | Spousal Support (2) | Attitude (2) | Anxiety (2) | Mediate (2) | Will (2) | Joint Decision Making (2) | Custody (2) | Consulting Attorney (2) | Couples (2) | Mediation Benefits (2) | Mediation Versus Litigation (2) | Bitterness (2) | Legislation (2) | Budget (2) | Agreements (2) | Certified Divorce Financial Analyst (CDFA) (2) | Step-Children (2) | Change (2) | Seperation (2) | Truth (2) | Settlement Agreements (2) | Step-Mother (2) | Unrequited Love (2) | Anger (2) | Conflict During Mediation (2) | Post-Divorce Income (2) | Trust Issues (2) | Calculating Support (2) | Step-Father (2) | Pensions (1) | Short-term Marriage Divorce (1) | Objective Standards In Mediation (1) | Divorce Agreements (1) | Thrive (1) | Impartiality (1) | Lack Of Focus (1) | Pension Plans (1) | Retirement Plans (1) | COVID 19 (1) | Retirement (1) | CoParenting (1) | Family Court Presumptive ADR Program (1) | Learning From The Past (1) | Parenting Styles (1) | Coparenting (1) | New York Family Court (1) | Presumptive ADR Program (1) | Alternative Dispute Resolution (1) | ADR (1) | New Year Resolutions (1) | Perspective (1) | Opposites (1) | Depression (1) | Family Occasions (1) | Honest Conversation (1) | DecisionMaking (1) | Empowerment (1) | Personality (1) | Separate Property Credit (1) | Advocacy (1) | Legal Rights (1) | Objective Standards (1) | Compromise In Agreements (1) | Child's Best Interests (1) | NYs Child Support Guidelines (CSSA) (1) | Child Support Payment (1) | Custody Determination (1) | Primary Caretaker (1) | Elder Mediation (1) | Older Parents (1) | Domestic Violence (1) | Non-Residential Parent (1) | A Neutral (1) | Well-being (1) | Children And Divorce (1) | Co-parenting (1) | Parenting Schedules (1) | On-Duty Parent Responsibilities (1) | Transition Day (1) | An Advocate (1) | Needs And Interests (1) | 50/50 Parenting Plan (1) | Eldercare (1) | Older Adults (1) | Pension (1) | Child-focused (1) | Tone Of Voice (1) | Communicating (1) | Fairness Evaluation (1) | Facial Expression (1) | Waiving Spousal Support (1) | Postnuptial Agreements (1) | New York’s Child Support And Maintenance (1) | Family Mediations (1) | Mediating Emails (1) | Expectations (1) | Pathological Liar (1) | Anxious Thoughts (1) | Tough Decisions (1) | Joseph Goldstein (1) | Feelings (1) | Child Focused Mediation (1) | New Year’s Resolutions (1) | Intention (1) | Languish (1) | Support Add-ons (1) | Financial Impropriety (1) | Parenting Agreement (1) | Divorce Terms (1) | Spousal Infidelity (1) | Consulting (1) | Spousal Support Payments (1) | Mediation Caucus (1) | Significant Others (1) | Introducing Significant Others (1) | Unfaithful Spouse (1) | Divorce Agreement Terms (1) | Ovarian Cancer (1) | Review Attorney (1) | Support Connection (1) | 50/50 Parenting (1) | Breast Cancer (1) | Hope (1) | Postnup (1) | Default Provisions (1) | Support (1) | Speak Up (1) | Marital Asset (1) | Inflation (1) | Children Of Divorce (1) | Financial Professionals (1) | Interest Rates (1) | Post Divorce Budgets (1) | Buyout (1) | Real Estate Buyout (1) | Partial Buyout (1) | Credit Against Child Support (1) | Real Estate (1) | New York Divorce Law (1) | Real Estate And Divorce (1) | Lowest Acceptable Offer (1) | Separate Asset (1) | Concession (1) | Joint Ownership Post Divorce (1) | Meditation (1) | Active Listening (1) | Self Compassion (1) | Self Reflection (1) | Cancer (1) | Successful Mediations (1) | Disagreements (1) | Ideas (1) | Beliefs (1) | Saving Grace By Kirsten Powers (1) | Daniel Pink (1) | Righteous Anger (1) | Mediation Process (1) | Matrimonial Practice (1) | Kindness (1) | Separate Living Without Divorce (1) | Kirsten Powers (1) | Bonuses (1) | Commissions (1) | Income Level (1) | Actuarial Company (1) | Buyout Options (1) | Pro-Rata (1) | Rights Of Inheritance (1) | Court (1) | Judge (1) | AcceptableOutcome (1) | Happiness (1) | Decision Makers (1) | Mediation Friendly Attorney (1) | Regrets (1) | Cohabitation Agreement (1) | Collaboration (1) | Divorce Needs (1) | Commitment (1) | Being Understood (1) | Being Heard (1) | Regrets In Life (1) | Cohabitating (1) | Final Decisions (1) | Holding On To Regrets (1) | Contentment (1) | Parent Coordinator (PC) (1) | File A Petition (1) | Unmarried (1) | Biggest Regrets In Life (1) | Emotional Trauma (1) | Qualified Domestic Relations Order (QDRO) (1) | Apologizing (1) | Hurricane Harvey (1) | Compassion (1) | Nesting (1) | College (1) | Married Couples (1) | Commingling (1) | Retirement Account (1) | Maritial Assets (1) | Maritial Property (1) | Transmutation (1) | Contribution (1) | Parents (1) | Fall (1) | Conflicy (1) | Acknowledgement (1) | Power (1) | Extremes (1) | Payments (1) | Disclosure (1) | Moving On (1) | Unemployment (1) | Seperation Agreement (1) | Divorce Papers (1) | Negative Communication (1) | Dreaming (1) | Therapy (1) | Beneficiary (1) | Life Insurance (1) | Intervention (1) | Custodial Parent (1) | Bankruptcy (1) | Wife (1) | Husband (1) | Financial Situation (1) | Settlement Term (1) | Settle Agreement (1) | Permanent Agreement (1) | Temporary Agreement (1) | Installment Agreements (1) | Joint Legal Custody (1) | Tentative Agreements (1) | Accusations Of Delay (1) | Joint Account (1) | Financial Costs (1) | Lack Of Trust (1) | School Year (1) | Kids (1) | Specialist (1) | Mental Health (1) | Equity (1) | House (1) | Relocation (1) | Difficult Clients (1) | Control (1) | New York State (1) | Self Determination (1) | Self-determination (1) | Finding Love After Divorce (1) | Post-Divorce Dating (1) | Moving On After Divorce (1) | Joint Physical Custody (1) | Parenting Post-Divorce (1) | Parenting Plans (1) | Halloween (1) | Fear Of Divorce (1) | Alone At The Holidays (1) | Holidays Post-Divorce (1) | Holiday Blues (1) | Scared Of Divorce (1) | Balance (1) | Equality (1) | Grandparents (1) | Baby Boomers (1) | Living Apart (1) | Living Together (1) | Divorce Law (1) | Abundance (1) | Summer (1) | Marriage (1) | Resolution (1) | Scarcity (1) | Effects On Family (1) | Older Dogs (1) | Blame (1) | 2015 (1) | Year In Review (1) | Mindfulness (1) | Advice (1) | Self-talk (1) | Adopt Shelter Dogs (1) | Dogs (1) | New York (1) | Affair (1) | Married (1) | Complicated Finances (1) | Mediation Misconceptions (1) | Social Distancing (1) | Maintaining Calm (1) | FinancialPortfolio (1) | Multiple Assets (1) | COVID19 (1) | Court Order (1) | Matrimonial Cases (1) | Custody Disputes (1) | Coronavirus (1) | Meditate (1) | Attitudes Toward Prenups (1) | Asset Distribution (1) | Marital Concerns (1) | Court Vs Mediation (1) | Collaborative Process (1) | Prenuptial Agreement (Prenup) (1) | Property Distribution (1) | Equitable Distribution Statute (1) | But (1) | Fiancé (1) | Holiday Co-Parenting (1) | Social Security Assets In Divorce (1) | Parental Holiday Sharing (1) | Holiday Season (1) | Separating (1) | Guilt (1) | Cultural Holidays (1) | Religious Holidays (1) | Agreement To Mediate (1) | Technical Difficulties (1) | Mediating Virtually (1) | Mediating Onine (1) | Power Of Regret (1) | Couples Counseling (1) | Maggie O’Connor (1) | Global Pandemic (1) | Career Change (1) | Returning To The Workforce (1) | Remain Healthy (1) | Lack Of Communication (1) | Understood (1) | Heard (1) | Unhappy Relationship (1) | Needs Vs Wants (1) | Court Process (1) | Significant Other (1) | AttorneyPresence (1) | FamilyMediation (1) | MediationSession (1) | Attitudes (1) | Family Enrichment (1) | Ex-Spouse (1) | Accepting Responsibility (1) | Taking Responsibility (1) | Remarriage After Divorce (1) | LawyerDivorceMediation (1) | Matrimonial Dispute (1) | Lies (1) | Public Trust (1) | Personal Relationships (1) | Settlement Agreement (1) | Little White Lies (1) | Dishonest (1) | Perfection (1) | Holiday Preparations (1) | Work Stress (1) | Spouses (1) | Dividing House Asset (1) | Emotional Attachment (1) | PostNup (1) | Post Nuptial (1) | Time To Process (1) | Patience (1) | Fear Of Separation (1) | Lawyer (1) | Financial Documents (1) | Financial Information (1) | Family Law Software (1) | Mental Health Professional (1) | Marriage Counseling (1) | Frame Of Mind (1) | Interest Payments (1) | Equity Loan (1) | Refinance (1) | Divorce Assets (1) | Cash Flow (1) | Buyer (1) | Reluctant Spouse (1) | Telling Your Spouse (1) | Seller (1) | Caucus (1) |
Connect
Close Announcement

Online Mediation Available

I am providing family and divorce mediation services online. Click to learn more.