Is life insurance required in divorce?

Life insurance is not automatically required in every divorce. However, many court orders include provisions mandating that one or both parties maintain life insurance to secure alimony or child support obligations. Not all judges will require it, but you and your divorce attorney should definitely request it. If not court-mandated, it’s up to you and your divorce attorney to make that part of your divorce negotiations.

Who pays the life insurance premiums?

In most cases, the spouse who is obligated to pay alimony or child support is responsible for purchasing and maintaining the required life insurance policy. Some agreements split costs or allow the receiving spouse to maintain the policy at their own expense. All of this should be negotiated up front and included in your settlement agreement so there are no disputes after your divorce is finalized.

How long must coverage remain active?

Coverage must generally remain in force for the full duration of all the financial obligations it secures. For child support, this typically means until the child reaches the age of emancipation (typically 18 or 21, depending on the state). For alimony, the required duration matches the spousal support period that was negotiated.

What happens if required insurance is canceled?

Canceling or allowing court-ordered life insurance to lapse is a violation of the divorce decree. The non-compliant party can face contempt of court charges, financial penalties, or modifications to custody and support arrangements. The recipient spouse may petition the court to enforce the insurance requirement. Unfortunately, in many cases, it may not become known that the insurance policy was cancelled until after the death of the insured, when it will be too late. This is exactly why we strongly recommend that the recipient of support own the policy whenever possible.

What type of life insurance is best for divorce settlements?

Since cost is often a factor, term life insurance is usually the most economical choice for divorce settlement life insurance because it provides coverage for a specific period matching closely with the duration of support obligations. Permanent life insurance policies may be appropriate when obligations are open-ended or when alimony is permanent and therefore requires lifetime coverage. Every divorce is different, and we will work with you to determine which type is most appropriate for your specific situation.

For Family Law Attorneys

As the trusted divorce insurance partner for family law attorneys nationwide, we exclusively provide the following services for divorcing clients:

help divorcing people protect their receipt of alimony and child support payments with life and disability insurance, and

help those divorcing homeowners who want to keep their marital home, but don’t have sufficient income to refinance by creating a guaranteed*, fixed monthly income stream using a specific annuity strategy (Insufficient income is a common problem for divorcing/divorced stay-at-home moms and dads).

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What We Handle

The Financial Protections Behind Every Settlement Agreement

When the life and disability insurance provisions in a Divorce Settlement Agreement are underdeveloped, improperly structured, or not even included, the financial protections might collapse should the unexpected happen.

Life Insurance to Secure Support Obligations

In order to properly determine the correct amount of life insurance coverage required, we will calculate the present value of all support obligations, including any that will occur in the future such as college expenses.

In addition, the insured’s cooperation, beneficiary designations, insurable interest, policy ownership, premium payments, etc. must be properly handled during the negotiation phase and incorporated into the final Divorce Settlement Agreement.

Disability Insurance for Payor Spouses

Becoming disabled is statistically much more likely than dying during one’s working years and this important protection is almost always overlooked and not included in the settlement agreement. We source private long-term disability insurance coverage where the recipient spouse can be the owner and beneficiary — a structure most insurance carriers won’t allow.

Court-Ordered Insurance Compliance

For court orders mandating specific coverage amounts, policy types, or beneficiary structures, we source compliant policies and provide documentation demonstrating compliance for the court record.

Income Solutions for the Marital Home

When a client wants to keep the marital home but lacks sufficient qualified income to refinance, we help clients convert some of their liquid assets into a guaranteed*,fixed monthly income stream using a Single Premium Immediate Annuity, which is acceptable as qualified income by almost all lenders.

Built Around Your Negotiation Timeline

The above solutions need to be addressed during settlement negotiations, not after. Once the Divorce Settlement Agreement is signed and finalized, the cooperation required to underwrite a policy on the payor spouse often disappears. Our process is designed to work in parallel with yours.

Initial Confidential Consultation

You and/or your client reaches out to us. We will review the financial obligations under discussion; alimony, child support, and any additional obligations like education or medical expenses and identify every insurance requirement.

Coverage Analysis Before the Agreement Is Final

We calculate the required coverage amount, confirm the payor’s insurability, establish actual premium costs, and identify any limitations from age or health; all during the negotiation window, so adjustments can still be made.

Settlement Agreement Language

We suggest what should be included in the Divorce Settlement Agreement so you can draft the specific language concerning coverage amount and term, policy ownership, beneficiary designation (including the post-decree redesignation required in automatic revocation states), premium responsibility, proof-of-coverage requirements, and consequences for letting the policy lapse

Application, Underwriting, and Documentation

We manage the application process, coordinate medical exams, work with underwriters to move the policy through approval, and deliver documentation that integrates cleanly with the final Divorce Settlement Agreement.

Practioner-focused published articles covering the intersection of insurance and divorce and how they can positively affect your clients’ post-divorce outcome.

The National Law Review

For Attorneys

Life Insurance in Divorce: Insurable Interest, Consent Requirements, and Automatic Revocation of Beneficiary Designations

Jeff explains the two issues that create the biggest post-divorce risk for support recipients: establishing insurable interest before the settlement is finalized, and the automatic revocation statutes now in effect in 26 states.

May 7, 2026

U.S. News & World Report

For Consumers

Maryland and California Pass New Laws to Protect Your Low Mortgage Rate in a Divorce

Jeff breaks down what new state laws mean for divorcing homeowners trying to keep their low-rate mortgage — and the financial workarounds available in states without similar protections.

2026

Background

40+ Years at the Intersection of Insurance, Real Estate, Mortgage, and Divorce

40+

Years of combined experience in insurance, real estate, mortgage and divorce financial work

1,000+

Divorcing clients served nationwide since 2010

8

Published books on the financial aspects of divorce

Jeffrey A. Landers holds the Certified Divorce Financial Analyst (CDFA®) and Certified Divorce Lending Professional (CDLP®) designations and is a licensed insurance agent, real estate broker, and mortgage broker. He is a contributor to The National Law Review, Forbes, and HuffPost, and has been interviewed by CBS News (TV), FOX News (TV), The Wall Street Journal, Dow Jones, and The Miami Herald on the financial aspects of divorce.
Jeff received his BA degree from Columbia University and attended the Elisabeth Haub School of Law at Pace University.

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