A key part towards minimizing stress in your divorce is showing your attorney the necessary paperwork about your financial assets. Divorcees that have little to no knowledge about their property and do not provide their lawyers with essential financial documents could drag the proceedings further and lose more of their assets in the process.
Some of the most important documents to show your attorney are your insurance policies. Your life, health, homeowner’s and automobile insurance will drastically change from the separation, and it is important for your lawyer to be aware of so they can help prepare you for these shifts.
Life and health insurance
Life insurance is arguably the most critical out of all of the policies. You may have to change your beneficiary if you no longer want your spouse to get anything after your death and will have to take extra steps to ensure that if you made them an irrevocable beneficiary. You can also use it to potentially replace child support or alimony. Before signing divorce papers, State Farm recommends couples to do the following:
- Reevaluate the divorce agreement
- Discuss how long the coverage should be
- Determine who pays the premiums
- Rename beneficiaries
- Figure out how much you’ll need.
Your health insurance is dependent on if you have your own coverage or not. If you rely on your spouse’s, you will have to get your own elsewhere or determine if you still need to be on your spouse’s original plan.
Car and home insurance
These policies tend to be slightly easier to divide given the more temporary nature of these properties and how dependent it is on the asset division. Once you figure out who gets the house and who gets which cars, you need to let the insurer know who the sole owner is so they can remove the other one’s name from the policy. The only curveballs would be your child needing to be on both policies if they drive both cars and getting renters insurance if you move during or after the separation.
It cannot be stressed enough that providing your divorce attorney with the proper paperwork on your insurance policies is crucial towards helping you get the most out of the separation. They can quicken the process and help you devise strategies to ensure that your insurance policies will be as strong as they can be once you finalize the divorce.