Life insurance plays several important roles in divorce. Policies with cash value may be marital assets subject to division. Courts and settlement agreements often require the support-paying spouse to maintain a life insurance policy to secure obligations in the event of their death.
Call Us Today: (312) 803-5838
Life Insurance in Divorce
Life Insurance and Divorce Lawyers Chicago
There are two main and different considerations in regard to life insurance and divorce proceedings. First, if the parties have minor children and/or a party is obligated to pay child support, maintenance (also known as alimony) or property payments, then the court may order or the marital settlement agreement will likely include language that requires a party to obtain or maintain life insurance for the duration of the financial obligation to the other party. While this may seem like an unfair obligation, the courts have determined that the burden placed on the party who has a duty to make the payment far outweighs the possibility of the other party or family members seeking state or federal government aid after the death of a party that still has an existing obligation.
Second, if a party has no financial obligations to the other party after a divorce, then each party must also keep in mind that obtaining a divorce in Illinois does not automatically remove the former spouse as a beneficiary to a policy and each life insurance policy should be awarded to one party.
Talk with a Chicago family law attorney about your situation.
It is important to ensure that settlement terms are clear as to which party is being awarded which life insurance policy, as changes (such as beneficiary) will have to be made after the case is finalized. Oftentimes, there are also cash values or monthly payments that must be made to ensure continuing coverage or payout, so clear guidance from a family law attorney on the life insurance policy aspect of a divorce is important since the long-term future ramifications can be significant.
Contact the knowledgeable attorneys at WARD FAMILY LAW, LLC, to learn more about life insurance in divorce.
Frequently Asked Questions
Is life insurance cash value a marital asset in Illinois?
Yes. The cash value of a whole life or universal life insurance policy accumulated during the marriage is generally a marital asset subject to equitable division. Term life insurance has no cash value and is generally not divisible.
Can an Illinois court require a divorced parent to maintain life insurance?
Yes. Courts frequently include provisions requiring the spouse paying child support or spousal maintenance to maintain a life insurance policy naming the other spouse or child as beneficiary in an amount sufficient to cover the support obligation.
Who should be the beneficiary on a life insurance policy after divorce?
Beneficiary designations do not automatically change upon divorce for employer policies — you must actively update them. For court-ordered insurance, the policy must name the beneficiary as required by the divorce order.
What happens if a former spouse fails to maintain required life insurance?
Failure to maintain court-ordered life insurance is a violation of the divorce order and can result in contempt proceedings, financial penalties, and court orders compelling compliance. If the paying spouse dies without coverage, the estate may be held liable.
Can a spouse change life insurance beneficiaries during divorce proceedings?
Illinois divorce filings trigger automatic temporary restraining orders that prohibit changes to insurance beneficiaries without court approval or the other party's agreement. Changing beneficiaries during divorce can result in sanctions.
What type of life insurance is typically required in an Illinois divorce?
Term life insurance is most common in divorce orders because it provides death benefit coverage at the lowest cost. The required term and amount are typically tied to the duration and amount of the support obligation.
What should I do with existing life insurance policies when getting divorced?
Review all existing policies with your attorney. Determine which have cash value that must be disclosed, which must be maintained to secure support obligations, and how beneficiary designations must be structured after divorce.
Does life insurance affect the division of other marital assets?
The cash value of a life insurance policy is included in overall marital estate calculations. If one spouse is awarded the policy, the cash value is credited to their share of the estate, potentially affecting how other assets are divided.
Can a divorced spouse collect on a life insurance policy if not properly removed as beneficiary?
This is a complex legal question that varies based on the type of policy and applicable law. The safest approach is always to update beneficiary designations promptly upon finalization of divorce.
We’re Helping Real People Solve Real Problems Everyday
This Law firm was excellent with communication and follow through, compassionate to my very unique situation and ultimately GOT THE JOB DONE! Thanks to Jennifer Ward you are appreciated! Continued success to you!
Edward A.
Jennifer was absolutely stellar. They helped me navigate a difficult divorce & assisted in managing reduction in further traumatic interactions with the Ex. I am so grateful for her guidance & support!
Brittney C.
I do not tend to write many reviews but I know that when something works you need to pass it along. This team works. For you. For your kids.
Ramesh G.
They are highly skilled at both negotiation and litigation - we were able to settle the financials but had to litigate the kid issues - Jennifer always put my interests first.
Jitendra K.
I'm grateful for the dedication during my child support case. They provided me with the guidance I needed to get me to the end.
Vikas C.
I'm grateful!! Unmatched support and guidance from start to finish in modifying an old child support order.
Oluwafemi O.
Five stars! Jennifer was responsive, knowledgeable, and supportive throughout my divorce proceedings.
Koby B.
Choosing Ward Family Law was the best decision I made during my paternity case. Their dedication to achieving the best outcome for their clients and the kids is unmatched.
B. M.
A big thank you!! The dedication and professionalism throughout my divorce proceedings - truly grateful. I couldn't have asked for a better legal team.
Carlos B.
I appreciated the attention to detail and commitment to achieving the best possible outcome in my case. Highly recommended!
Lionel C.
Life rarely stays the same after a divorce is finalized. As a dependable divorce modification attorney Chicago, Ward Family Law helps clients petition the court to modify child support, spousal maintenance, and parenting time when a substantial change in circumstances makes the original order unworkable.
Our dedicated team of lawyers, paralegals, and staff provides reliable guidance and support
every step of the way.
Phone
(312) 803-5838
CONTACT USRequest Your Case
Consultation
Fill out the form below to schedule a consultation.
"*" indicates required fields
© 2026 Ward Family Law, LLC. All rights reserved.
The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Past results and testimonials are not a guarantee, warranty, or prediction of the outcome of your case, and should not be construed as such. Past results cannot guarantee future performance. Any result in a single case is not meant to create an expectation of similar results in future matters because each case involves many different factors, therefore, results will differ on a case-by-case basis. By providing contact information, users acknowledge and give explicit consent to be contacted via the methods of communication provided, including SMS. Message and data rates may apply. Message frequency may vary. Reply STOP to opt out.