In New Jersey, couples going through a divorce may be taken by surprise by a number of things that turn out to be unexpectedly difficult. One of these issues that involve complicated considerations is life insurance. Many people opt for a standardized approach, but life insurance actually requires individualized solutions to fit a particular situation.

Sometimes, it seems like the amount of life insurance that is required by the divorce agreement is random and not based on reality. What the parties need to do is to conduct an educated analysis of how much it costs to raise children and then choose the mandated amount of coverage accordingly. The costs of raising children can depend on things such as lifestyle and even the cost of college. The parties should be asking the same questions if the agreement provides for alimony instead of child support.

The parties also need to consider the cost of life insurance premiums in the future. Costs go up as the insured gets older. Therefore, if a certain level of coverage is mandated today, it can be burdensome for the party who is required to pay for the policy as the costs of insurance escalate. These are all considerations that people may overlook when they are dealing with other major matters such as custody or property division.

A divorce attorney may help keep their client focused on all of the details during a divorce as opposed to just the major ones. Their role is to consider contingencies that their clients might not be aware of and raise the issues as the agreement is being negotiated. One of these issues is life insurance as the parties may not have the necessary knowledge to consider how divorce impacts issues of insurance years into the future.