Divorce and the benefits of disability insurance

Separating spouses in Texas may wish to learn more about how their divorce can be affected by disability status associated with one of the parties involved in the proceeding. If the payor of spousal support or child support becomes disabled, there is typically little recourse for the payee to secure their entitlements guaranteed through the court. Most people do not have any disability insurance besides Social Security.

Even when the payor has disability insurance, only 40 to 60 percent of their income may be covered. If the payor does become disabled, they may be compelled to file for a reduction in obligation due to the change in financial circumstances. However, there are specific insurance products available designed to uphold the divorce decree in the event of the payor becoming disabled. The coverage can be built into the divorce decree, and both parties can be assured that the payments will continue without undue hardship.

The special coverage typically qualifies for obligations that amount up to $1 million, and anything over that may necessitate some underwriting. This special insurance does not typically require applicants to submit any medical records or undergo any examinations. It is also possible to secure divorce disability insurance once the divorce has already been finalized. The coverage can be obtained at any time as long as there is no preexisting condition. When divorce disability insurance is not viable, investing in a life insurance plan that has a critical illness rider may be the next best option.

Separating spouses who need more information about disability insurance and divorce may benefit from confiding in a lawyer. Legal counsel may be prepared to review the divorcing couple's financials and help identify the most advantageous courses of action going forward. Lawyers may also be effective in assisting with other aspects of the divorce process, including negotiating for asset division and establishing terms for the parenting plan.

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