Disability Insurance in Divorce: The Overlooked Risk for Recipients of Alimony and Child Support Payments

Short summary

Family law practitioners often overlook disability insurance in divorce agreements, despite disabled-worker risk being statistically higher than death. A payor's disability can trigger modification of alimony/child support even when contractually obligated. Private long-term disability with 'own occupation' definition provides better protection than employer group coverage, which is often non-portable and uses weak disability definitions.

• •One in four workers will experience disability lasting 1+ year during working life; more likely than death
• •Payor disability can trigger court modification of support obligations due to income loss
• •Employer group disability insufficient; need private long-term with 'own occupation' definition for portability and tax treatment

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