June is a time for weddings. With the union of two people, financial planning is imperative. And it is equally, if not more important, upon divorce. While many couples are finding happiness in their wedded bliss, it is equally important be aware of financial considerations during marriage breakdown.

If you are in the middle of a divorce, you know that the process can be stressful and emotional. The financial impact can be equally trying. Oftentimes, years of financial planning can be disrupted, as both parties' standard of living declines. Understandably, there are other things on your mind besides insurance. And yet, insurance is an extremely important aspect of financial planning that is necessary to evaluate in any divorce settlement.

Life insurance policies need to be reviewed during the negotiation phase. Both parties should make a record of their various insurance policies, and list the sums insured, names of beneficiaries, premium requirements and any cash values. Don't forget to add term and group life policies to this file.

Most happily married couples will select their spouse as beneficiary. During divorce or separation, it is often necessary to change these designations. Any amendments should be made in writing to avoid future misunderstandings. Irrevocable designations can be tricky to change, but not impossible at this stage. If overlooked, it could prove to be challenging after the separation or divorce has been finalized.

Carefully consider what your financial needs will be after the settlement. You may need additional life insurance to protect your family. If you are expecting to receive spousal or child support, it may be necessary to have your ex-spouse purchase life insurance to cover the financial obligation in the event of his/her death. In this case, it is sometimes recommended that the recipient of the payments be the owner of the policy to ensure that the policy does not lapse. Alternatively, the former spouse may be granted the authority to have access to information regarding the policy's status. After the divorce is final, a review should be done to ensure all policies discussed are now in force.

A divorce is a difficult time for everyone involved. But there are people who can help. The Financial Divorce Specialist, FDS designation, is a professional with specialized financial training to help with the financial calculations of marriage breakdown.

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.