It is very important when divorcing to consider your long-term care needs. Divorce among those 50 and above has more than doubled since the 1990’s. This is particularly relevant if you are getting divorced and are over 50 or you and your soon to be ex spouse have purchased a long- term care policy, life insurance, or have annuity based financial products.

The focus of most divorce attorneys is on the here and now. What assets there are, what liabilities, what retirement plans, real estate, businesses, were accumulated during the marriage? In addition, attention is given to income streams, and whether maintenance/alimony should or will be paid. This is all important and necessary. Documentation, financials, tax returns, an inventory of assets and debts will need to be exchanged. Appraisals for real estate or businesses will be ordered.

What may be neglected is what life insurance policies were purchased during the marriage? Who is the owner? All there any riders to the policy? Is there a long- term care policy or long -term care rider attached to the life insurance policy? Who will be able to submit a claim, be paid on a claim, or have the authority to manage these policies?  Who will be paid monies from these policies for reimbursement, upon death or receive the cash surrender value?

Not only must these policies be included and discussed in the divorce settlement; what many do not realize is even if the divorce agreement states a wife or a husband will be a beneficiary or are entitled to certain benefits of the policy that is not binding on the life insurance or long- term care providers. In such a situation benefits may be paid to your ex-spouse instead of you. These plans must be explored to ensure the spouse it is intended for receives the benefit. Power of attorneys, life insurance trust, or a change of ownership may be required.

 This is especially important in second marriages when planning with a financial advisor or attorney; particularly if the spouses have children from a prior marriage and may be influential in end of life and care decisions. If your spouse owns a policy and becomes incapacitated it is important you have a power of attorney or are a co- owner of the policy. Prenups or post-nups may also be helpful so it is clear what each spouse intends for the care of the other. If there is a divorce this must be contained in the divorce documents.

 A thorough review with a financial adviser working with an attorney can assist to ensure both parties and their families are protected. Perhaps the purchase of long- term care policy is warranted. Perhaps there is a need for additional life insurance or a life insurance trust. It is advised to seek legal counsel who understands this area of law.

As they say one thing is certain death and taxes. As we age, we do not know how it will affect us or our spouse. When divorcing, remarrying, or living with someone in your senior years do not forget death, illness, and diminishing mental and physical abilities is part of life and plan accordingly. This will ensure that you are protected and you can enjoy your golden years.