Some may consider raising the topic of life insurance during a divorce as bad timing, however, it is an important conversation to have because the splitting of finances and responsibilities between two people may leave one or both exposed.

Divorce is a common part of Australian society and it can have a negative financial impact on many people who go through the process.

While the financial focus is often on assets and cash, life insurance is also an area where advisers can offer value, particularly where young children are involved.

Around the world (Vulliamy 2016, 'The nine most common reasons couples get divorced', The Independent; Institute for Divorce Financial Analysts n.d., 'Certified Divorce Financial Analyst® (CDFA®) professionals reveal the leading causes of divorce'; Goldhart & Associates 2015, 'Top 5 reasons for divorce in Canada'), the top reasons cited for divorce include financial issues, along with lack of communication, and infidelity.

This paper offers some tips on where advisers should look when dealing with a divorced person to ensure they have sufficient cover after separation. In doing so, advisers can help remove one area of concern during an emotional and stressful time.