It's unfortunately common for people going through a divorce to fail to plan appropriately to secure their future. As the saying goes, failing to plan often amounts to planning to fail. Though it can be hard to think through every eventuality, there are some relatively straightforward steps you can take to ensure you and your family are protected in case something bad should happen.
One such important step is to consider requiring life insurance to secure alimony and child support payments going forward. This can be especially crucial in high net worth divorces, given the amount of money at stake. In cases where the spouse who pays support has a high income, it is not at all uncommon for the value of the payments to exceed $1 million over time.
If you're the person who receives these substantial payments, it is important to ensure that the income stream doesn't disappear one day without warning. If your former spouse were to die, all the court ordered payments could vanish. Thankfully, you can avoid this possibility by taking the necessary steps to ensuring that your former spouse is required to carry life insurance to secure his/her obligation.
In South Carolina, Family Court judges are allowed to order your former spouse to maintain life insurance in certain cases. The judge can instruct the party paying the insurance to maintain life insurance sufficient to cover any remaining alimony and child support obligations by naming you the beneficiary. If this should happen, it's important that you guarantee the coverage remains current and does not lapse. To do this, you should make sure that your attorney requests that the Court require your former spouse to provide you with periodic updates about the policy.