Thursday, July 19, 2012

What is required in a Divorce decree for an order of life insurance?

In the case of Rashid v. Rashid, 35 So.3d 992 (Fla. 5th DCA 2010) the court found:
ERROR TO REQUIRE HUSBAND TO OBTAIN LIFE INSURANCE TO SECURE ALIMONY AND CHILD SUPPORT OBLIGATIONS WITHOUT FINDINGS REGARDING AVAILABILITY AND COST OF INSURANCE, ABILITY TO PAY, OR APPROPRIATE CIRCUMSTANCES TO JUSTIFY THE REQUIREMENT.
The Wife filed a petition to end her 22-year marriage and requested, among other things, alimony, child support, attorney's fees, and shared parental responsibility. The lower court granted attorney's fees and awarded the wife alimony and child support; requiring husband to secure those obligations with life insurance. The court further awarded the wife, sole parental custody, an award well beyond the shared parental responsibility actually requested by the Wife. As to the insurance requirements, the District Court held:
1. "The courts are statutorily authorized to order the obligor to maintain life insurance to protect alimony awards and child support allegations… when "appropriate circumstances" exist to justify the award."
2. "Appropriate circumstances may include the dire impact that the sudden death of the obligated party would have on the receiving party."
3. "In order this protection, the court should consider the 'availability and costs of such insurance and the financial impact it will have on the former husband…. The final judgment should include appropriate findings regarding the availability and cost of insurance, the ability of the obligor to pay, and the appropriate circumstances that justify the insurance requirement."
4. "Here, the trial court made no findings to support the order of life insurance, and Wife concedes the error." 
It is always a good idea to get life insurance to secure payments of alimony and child support.

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