Life Insurance in Custody Cases

Parents typically anticipate that they will be able to witness their children achieving significant milestones throughout their lives. Sadly, however, some parents pass away while their children are still young. Losing a parent often not only causes emotional trauma but also frequently leaves a child without adequate financial support. As such, in many cases in which parents share custody of a child, the courts will issue an order mandating that a parent obtain a life-insurance policy to ensure that their child receives the support they need in the event of the parent’s untimely death. If you are interested in learning more about life insurance in custody cases, you should contact an attorney as soon as possible. The skilled Dallas child-custody attorneys of McClure Law Group have ample experience helping parents protect their rights and the interests of their children, and, if you hire us, we will advocate zealously on your behalf.

The Texas Family Code (the “Code”) defines parental rights and obligations with regard to child support. As all parents in Texas have an obligation to provide financial support for their children, the Code permits courts to issue orders dictating that a parent must pay child support to their co-parent. The court can also issue an order that provides for financial support in the event of a parent’s death. In other words, a court can order a parent that is obligated to pay child support to acquire and maintain a life-insurance policy, which may include a decreasing term life-insurance policy, that establishes either an annuity or insurance-funded trust that is payable to the parent receiving support, in the event the paying parent dies. The court may require the obligor parent to offer proof that they have complied with the order requiring them to obtain life insurance, as well.

The Code also sets forth numerous factors the courts must assess when evaluating whether to order a party to maintain a life-insurance policy to ensure their child is supported after their death. Such factors include the present value of the entire amount of monthly child-support payments from the time the court enters the child support order until the month the child turns 18. This value is based on the amount of the monthly child-support obligation. The courts must also look at the present value of the entire amount of dental- and health-insurance premiums payable for the child’s benefit from the time the support order is entered until the child turns 18, based on the cost of such insurance for the child.

In cases in which the child is disabled, the court must look at the amount of support the child will need after the age of 18, in consideration of their current and future needs related to their disability and the care associated with those needs, the parent’s financial resources and the availability of other resources, and whether the parents will pay for the child’s care or provide such care themselves.

Even if the courts do not dictate that a parent obtain a life-insurance policy, parents may consider purchasing policies and naming their children as beneficiaries to guarantee that their children have adequate financial support should they pass away.

Parents have an obligation to financially support their children, and in some instances, the court may take measures to extend child-support duties past a parent’s life. If you have questions about life insurance in custody cases, it is smart to talk to an attorney. The capable Dallas lawyers of McClure Law Group can assess your case and advise you of your options for seeking a good outcome. We regularly represent people in child-custody and support cases in Dallas, Rockwall, Fort Worth, Frisco, Irving, McKinney, Richardson, and Garland. We also represent people in family-law matters in cities in Dallas, Rockwall, Collin, Denton, Tarrant, and Grayson Counties. You can reach us through our online form or by calling 214.692.8200 to set up a confidential conference.