You may not think of life insurance and marriage as being similar to one another, but there is a significant overlap. Both marriage and life insurance are legally binding contracts that you agree to sign because of your love for another person. When you sign each of these contracts, have hope that you’ll love a happy and fulfilling life with your spouse with a clear understanding that things could take a turn for the worse. If you’re a Washington resident, here are some things to look out for when it comes to revising your life insurance policy after a divorce.
When happens to your policy when you get divorced?
Aside from the emotions that come with divorce, ending a marriage can be overwhelming because you have so many things to consider. You’re likely concerned about how your divorce will affect the debts and assets the two of you share. These factors are dealt with differently depending on which state you live in. It’s best to contact the Washington court system so you’ll know what to expect.
Divorce laws in Washington, which is a community property state, as well as the type of policy you own and the method in which the insurance policy was purchased, will determine who gets what in divorce.
It’s important to consider your personal situation with your soon-to-be-ex in mind. If the divorce is bitter and you hope to never see your ex again, you likely want to get as much money as you can from the policy. If you’re on good terms with your ex and want your former spouse and children to be provided for when you pass away, you’ll approach your policy differently. A financial advisor can let you know which steps to take.