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TX divorce lawyerref=divided in divorce are usually homes and vehicles, but there is one other asset that can arguably be more important: insurance policies of any kind, most specifically life insurance. Insurance policies can have significant payouts and can tip the balance in terms of property and asset division.

Child Support and Life Insurance

In Texas, if you have children, it is not uncommon that a court may ask you and your spouse to maintain life insurance policies on yourselves as both a way to provide for the children in an emergency and a way to secure child support obligations. The reasoning is not to give the former spouse a payday in the event of your death, but to ensure that your children are adequately provided for. Some former spouses hesitate to do this, but it is almost always the quickest and easiest way to ensure that your children are protected. Also, it is very often the case that the obligation to maintain life insurance results in a slight reduction in child support expenses for the paying parent.

While some have legitimate concerns about money being in the hands of fiscally irresponsible ex-spouses, there is a workaround. The most common is to list your children as the beneficiary of the life insurance policy, rather than your spouse. While your spouse will still have access to the life insurance money (in theory) if it is ever paid out, they will have a fiduciary duty to ensure that the proceeds of the policy be used to benefit the children. Failure to uphold that fiduciary duty can leave them open to contempt or embezzlement charges.

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