Implementing Divorce Changes - Life Insurance

For any non-employer sponsored life insurance policies, you should change the beneficiary designation to remove your ex-spouse and change your allocations.  If you own a policy where the insured is your ex-spouse, you should transfer ownership to your ex-spouse.  It is up to your ex-spouse to change the beneficiaries on the insurance policies he/she is provided with or owns.  You are not responsible for paying the premiums on policies that he/she owns unless directed through your divorce settlement.

If you become the primary financial supporter of your dependents following the divorce, you will need to consider whether the amount of coverage you have in place is now adequate. 

A good practice is to have the divorce agreement specify the amount of insurance coverage your ex-spouse is required to maintain especially if they are paying child support or alimony.  Should something happen to your ex-spouse, the insurance proceeds could be used to continue paying child support for your dependents or alimony to you.