Irrevocable beneficiaries of life insurance policies

[Caspian]

What is the name of your state (only U.S. law)? Maine
Firstly, I would like to know whether it is mandatory to bring issues of life insurance
into divorce proceedings. The particular case under consideration involves a wife who left her husband and is filing for divorce. Both spouses have comparable (and separately sufficient - each earns well into six figures) levels of income. During the course of their marriage, the couple had three children, all of whom are still minors. The wife, for her part, does not plan on having any more children than the three she's already had with her first husband. After a separation of several years, and with the divorce finally imminent, the husband plans to soon remarry and will very likely have more children. As part of their divorce proceeding, the wife wants her estranged husband to name their three children as irrevocable beneficiaries of a considerable life insurance policy that he will be required to purchase and provide proof to her that he has done so. Might this arrangement present difficulties for a second spouse and any future children if, say, due to health matters, the husband is unable to take out another policy to provide for his second family in the event of his demise? Before the divorce agreement is finalized, should he insist on adding a clause naming as beneficiaries any future children?

 

[nextwife]

What is the name of your state (only U.S. law)? Maine
Firstly, I would like to know whether it is mandatory to bring issues of life insurance
into divorce proceedings. The particular case under consideration involves a wife who left her husband and is filing for divorce. Both spouses have comparable (and separately sufficient - each earns well into six figures) levels of income. During the course of their marriage, the couple had three children, all of whom are still minors. The wife, for her part, does not plan on having any more children than the three she's already had with her first husband. After a separation of several years, and with the divorce finally imminent, the husband plans to soon remarry and will very likely have more children. As part of their divorce proceeding, the wife wants her estranged husband to name their three children as irrevocable beneficiaries of a considerable life insurance policy that he will be required to purchase and provide proof to her that he has done so. Might this arrangement present difficulties for a second spouse and any future children if, say, due to health matters, the husband is unable to take out another policy to provide for his second family in the event of his demise? Before the divorce agreement is finalized, should he insist on adding a clause naming as beneficiaries any future children?

They should each have insurance NOW sufficient to provide the other support if one of them passes, as the other becomes the only support for the children. If mom won't provide such insurance to dad, dad should not agree to provide it to mom. After all, they both have similar incomes, and the other becomes CP if the current CP dies, so they EACH need such protection.

As a second wife and mom, such a provision was not a problem, as I simply bought policies through my work on husband ,and privately, insuring husband and myself as part of our planning when we proceeded to have a family together. Perhaps dad should simply buy a SECOND policy NOW, while healthy, for which he can control beneficiary designation? OR, agree to a LARGER policy (as the cost per thousand drops a LOT after the first $100,000) for which he agrees to name the kids for 50% and anyone of his choice for the second 50%? But he should be sure to require EQUIVILANT coverage for kid's benefit from STBX wife. OR, instead of a percent, agree that X dollars of that policy go for the kids, and the difference anywhere he wishes.

 

[Dandy Don]

What is your interest in this matter--are you an attorney looking for information for his client or just a friend of the ex-wife?

That type of insurance provision is done all of the time in divorce decrees, and you don't need to be concerned about provisions for his future children--at this income level, he can afford to buy policies for his children NOW and any future children he might have.