People going through a divorce tend to feel anxious and stressed, and as a result, tend to focus on the immediate, pressing issues such as spousal support, child support, and the division of residential property. However, a divorce can have far-reaching consequences, particularly when there are children involved. It is important to consider how a divorce could impact the way your assets will be distributed upon your death.
When most people go through a divorce, they execute a property or marital settlement agreement (PSA). It may be helpful to consult with an estate-planning lawyer when drafting a PSA. PSAs often contain provisions requiring each spouse to maintain life insurance with a certain death benefit (for example one million dollars) and name the other spouse or mutual children as beneficiaries. This way, if either parent passes away, the now extinguished child support can be covered through the policy. Often the PSA will only require parties to carry this life insurance until the children are 18, or however long the child support agreement provides support.
Sometimes, when a death occurs prior to expiration of the child support agreement, and there is a PSA in place, it is unclear how the money is to be managed and spent. Should the former spouse just receive the money outright, or should it be held in trust for the marital children? What if the spouse disregards the PSA? Many of these potential problems can be remedied by including in the PSA a revocable living trust that includes provisions for the benefit of the children. Provisions can be included that specifically name the trustee, detail provisions for the funds, and handle any possible scenario that could arise. For instance, what if the former spouse predeceases the children? What if a child predeceases the spouse?
South Jersey High Asset Divorce Lawyers at Kearney & Martone, P.C. Assist Families With Estate Planning IssuesThe trusted South Jersey high asset divorce lawyers at Kearney & Martone, P.C. have a stellar reputation for helping clients meet their estate planning goals. If you are going through a high asset divorce in New Jersey, you need a lawyer that will work hard to protect your interests. Our lawyers have extensive experience in both estate-planning issues and in drafting PSAs. To schedule a consultation, call us at 856-547-7733 or contact us online. With offices located in Haddon Heights, New Jersey, we serve clients throughout the South Jersey region, including those in Haddonfield, Moorestown, Collingwood, and Cherry Hill.