Divorcess & Beneficiaries

[February2003]

What is the name of your state? Illinois

My fiancee' is a divorcee- in his divorce decree/seperation papers he and his ex-wife both agreed to name their only child (who is currently 6 years old) as both of their sole beneficiaries until the child is 22 years old. Is my fiancec bound to stick to that? When we marry and have children, can me and our child not be named as beneficiaries because of that clause in their divorce papers?

 

[VeronicaGia]

You will really need to read those papers and possible change ask the court to change them to reflect that a life insurance policy will be held by each person for the value of child support should one person die prior to the emancipation of the children. In other words, your husband should take out a life insurance policy naming the children as beneficiaries for the value of future support. Also, you could take out life insurance policies on both you and your husband, in your name, naming you as the beneficiary of his policy (that you pay for with your own money from your own checking account or via your own payroll deduction) and naming him the beneficiary of your policy.

 

[February2003]

Thanks. So without changing the divorcee decree, which I'm sure his ex won't agree to, he has given up the right to claim whom ever he wishes... it that correct?

 

[VeronicaGia]

If he has no plan to change the papers, I would approach it that way. You wouldn't want to have him take out other policies, have something happen to him, and have her fight you for those policies. But, as soon as you can you should get this changed to reflect only one life insurance policy to cover support.

So, in the mean time, to cover yourself, you will take out all life insurance policies in your name, you will pay them with your own money, and she will have no control over the situation. Of course, he will continue to insure himself on one policy that is in order with the divorce papers.

In fact, you will likely want to keep everything separate, checking and savings accounts, bills, make sure you're on the title of any house that is in his name, etc. Cover your own behind, and his too!

 

[February2003]

Ahh. That is so interesting. Good thing I looked into this. I do wonder what she is going to do when and if she re-marries and has more children. Then she will be stuck in the same spot- with their son as the sole beneficiary for her things. How could her divorce lawyer (my fiance never had one, can you beleive that!) have advised her into saying that they should both name their son as their sole beneficiary? What is the advantage of that? Maybe I should look at the papers more closely. Perhaps it only stipulates that HE has to name their son as sole beneficiary.

 

[VeronicaGia]

Ah, and one thing I forgot to mention. When you purchase these life insurance policies, you will also name contingent beneficiaries, such as any children you have with or without him.

In other words, he will be your beneficiary, with contingent beneficiaries in case you die at the same time. You will be his beneficiary, with contingent beneficiaries named also.

That way, if something happens to both of you at the same time, she cannot claim that any policy on his life should be given to her children solely, or split amongst her children and any other children he has.

Yes, she will be stuck in the same situation. When he can afford to, he should have this order modified. He should bring proof that he currently has his life insurance policy per the decree and ask her to produce documentation of the same. Then he just needs to ask that one specific policy in his name and one in hers name the children as beneficiaries.

Best of luck.

 

[February2003]

Well, I guess there is no way to do it EASILY. What a mess. Oh well, we can deal with it. Thanks for all the advice.

 

[VeronicaGia]

Well, I guess there is no way to do it EASILY. What a mess. Oh well, we can deal with it. Thanks for all the advice.

You're welcome. You may want to do some research on probate law in Illinois too, just for your own peace of mind. And if you can afford it, hire an attorney to set up a simple will.

Best of luck!