Madilyn Keating Ellsworth’s Answer
Under Illinois law, the Court may require one or both parents to secure payment of child support by obtaining life insurance. Any premiums for life insurance ordered by the court to secure payment of a child support obligation may be deducted from the payor’s net income, which will reduce their income for child support purposes. For this reason, many divorcing couples agree to maintain life insurance to ensure there will be enough money to care for their children in the event of their death. Typically, the life insurance must be maintained until the payor’s child support obligation has ended. To avoid unintended consequences, careful consideration should be given to decisions of who to name as beneficiaries of a life insurance policy to secure a child support obligation. Be sure to work with an experienced and knowledgeable divorce attorney who can help guide you through these important financial planning matters.