When child support or spousal maintenance is ordered in a divorce, the law governing support allows the court to order life insurance to cover the obligation. Life insurance naming a child or spouse as beneficiary protects them in the event of a payor’s untimely death.
How much life insurance to secure to cover a child support obligations takes into account several factors starting with the amount of child support and related expenses parents are ‘expected to pay’ until a child reaches the age of majority or graduates high school.
Because there are costs associated with raising children that fall outside of a child support order, it is also important to factor in costs such as child care, unreimbursed medical expenses, and costs to participate in extracurricular activities, or even college tuition that may or may not be part of the existing child support order.
As for spousal maintenance, life insurance can cover the amount of alimony ordered by the number of years a payor is ordered to pay. However, some payor spouses will instead opt for a policy which covers a year at a time rather than an extended policy, simply because spousal maintenance terminates upon the death of the payor.
With child support matters, it is essential to present the entire situation to the court to make sure the child support order reflects each parent’s circumstances. When you have questions regarding Illinois spousal maintenance or child support contact Ronald L. Bell & Associates at 847-495-6000.