Divorce and Risk Management
Risk may be defined as the possibility of harm, injury, loss, danger, or destruction. One option to help manage risk is to purchase sufficient insurance to pay for losses. Risk management is an important topic for separated or divorcing couples. When a divorce occurs, the selection of life and health insurance beneficiaries may have to be revised and, in some cases, insurance coverage may terminate. Because it's common for one spouse to maintain health insurance for the family, for example, the breakup of a marriage can have serious consequences for the nonworking spouse. Therefore, it's important to revisit the issue of risk management when a divorce seems likely.
Caution: Because divorce laws and insurance laws vary from state to state, it's important to consult experienced professionals in your state when planning for divorce.