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How a mother can financially protect her child in case of a divorce – ​Secure child’s financial life

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How a mother can financially protect her child in case of a divorce - ​Secure child's financial life

A mother can often get overwhelmed in this situation especially. You must be mindful to not let it wreck havoc on your finances and jeopardize your kid’s financial security. Follow these five steps to ensure that your child is taken care of financially.

Secure child’s financial life

(Based on text by Riju Mehta)

In the bitter eventuality of a divorce, not only are the husband and wife involved but the harm spills over to the children as well. Parents have to ensure that their child’s future and financial security are not compromised.

A mother can often get overwhelmed in this situation especially if she has not exercised much control over finances up until now. Going through a divorce can be painful but in such a sensitive time and delicate frame of mind, you must be mindful to not let it wreck havoc on your finances and jeopardize your kid’s. Follow these five steps to ensure that your child is taken care of financially.

Set up a trust

In case of a divorce with mutual consent, a good option is to set up a trust in which your child is the beneficiary. This will ensure that the child’s needs are taken care of in case either parent passes away.

Get a health plan

If the husband stops paying the premium for health insurance after divorce and you have the child’s custody, make sure you purchase a family floater plan of at least Rs 5 lakh which immediately starts covering yourself and the child.

Buy life insurance

If you are the nominee in a life insurance plan bought by your ex-husband and he wants to discontinue premium payments, you both can decide to make the child the beneficiary with yourself I.e. the mother as a guardian. If the husband does not agree to this, it is a good idea to buy a life insurance plan immediately with the child as the nominee. You could then add up the premium expense in the alimony calculation.

Compute expenses correctly

To decide the amount needed for the child and associate rearing activities, calculate the day-to-day expenses of bringing him/her up, expenses for studies, healthcare and entertainment/recreation till he/she turns 18 or starts earning. If you are to acquire a lump sum amount, factor in the long-term expenses for child’s higher education and wedding.

​Claim child maintenance separately

Remember, alimony is separate from child support. In case of a contested divorce, make separate calculations for both and ensure you get an adequate amount for your child’s upbringing.


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