For many Arizona parents, having the financial means to care for their children is a top priority when a marriage comes to an end. Child support provides the custodial parent with the ability to cover living expenses and all of the other costs associated with raising a child. If those payments cease for any reason, the custodial parent can be thrown into a very serious financial crunch, one that can have lasting effects.
The best way to protect against such a loss is by purchasing life insurance for the parent who is tasked with paying child support. That policy serves to provide a replacement for lost child support payments. In the unlikely event that one parent passes away before the youngest child reaches the age of maturity, the insurance would kick in.
The time to broach the subject is during the overall child support and property division negotiations. There are a number of different ways that the policy can be included, and there is a solution for each and every family. In most cases, the parent who is expected to make the child support payments is also obligated to procure the insurance policy, but not always.
Providing for shared children is often one of the few things that divorcing parents can agree upon. Child support is an important part of the post-divorce budget, and it is critical in providing the necessary level of care for a child. Insuring that those payments do not cease is an often-overlooked yet essential component of looking after a child in Arizona or any other state.
Source: cnbc.com, “Headed for divorce court? Here are your top 5 financial musts“, Andrew Osterland, Dec. 22, 2016