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holistic planning THREE EXPERTS Help a divorced couple cover support obligations Utilizing life insurance is just one option by Suzanne Yar Khan The experts Cathy Preston Vice-president, individual markets at RBC Insurance in Mississauga, Ont. Melanie Twietmeyer Wealth advisor at Investment Planning Counsel in Calgary Leena Yousefi Founder, lawyer at YLaw Group in Vancouver (Answers have been edited for clarity.) The situation Nadia Boghossian*, 40, is tired of fighting with her husband. They’ve been trying to make their relationship work for the sake of their children, who are eight and 12. After a particularly painful argument, she and Joseph finally agree their 20-year marriage is over. Joseph moved out last month, commencing the separation period. The children, Xavier (8) and Yolanda (12), continue to live with Nadia at their house in Burnaby, B.C. They’ll see Joseph about 30% of the time. Nadia will have sole cus- tody for support purposes. Joseph makes $125,000 per year as a hospital administrator and Nadia makes $80,000 per year as a plumber. Based on an online calculator, Nadia thinks Joseph’s child support obligation will be $2,000 per month; he will owe no spousal support. Nadia’s lawyer advises her that Joseph should take out a life insurance policy to cover his child support obligation, naming her as beneficiary. That way, if he dies before his support payments are completed, her children will be taken care of. Joseph, 44, who smoked before the children were born, had a heart attack three years ago. With a family history of heart problems, he also has high blood pressure and cholesterol, and the stress of the divorce isn’t helping. He is concerned he won’t qualify for life insurance. Further, he doesn’t want to name Nadia the beneficiary of anything — he doesn’t trust her. Joseph’s employer does not offer life insur- ance in his benefits package, though it does offer healthcare perks. Prior to the separation, Nadia and the kids were covered under Joseph’s benefits, as Nadia’s position does not come with benefits. Joseph’s plan will continue to cover the Boghossian children, but Nadia, who suffers from hyperthyroidism, is out of luck: she was kicked off the plan as soon as the separation commenced. Nadia had been meaning to get life insurance after Joseph’s heart attack, but was so busy she put it off. With a divorce on the horizon, she knows she should apply for the sake of her children. How should Nadia and Joseph proceed with regards to insurance? * These are hypothetical clients. Any resemblance to real persons is coincidental. SOPHIE BLACKALL / GETTY IMAGES 32 OCTOBER 2019