Insurance Tips and Divorce: What Every Couple Should Know about Insurance
Although there are exceptions, most married couples fall under the same insurance plan.
What happens to insurance if the couple then goes through a divorce?
Is each party then responsible for their own insurance, or is there a way to continue coverage on a spouse’s plan?
Are there other alternatives for disadvantaged spouses who may not have access to insurance?
Here is some advice on how to manage your insurance plans after divorce, including when and how to find new insurance if you will no longer be covered after divorce.
Health Insurance After Divorce
If you were covered under your spouse’s insurance plan during the marriage, you can attempt to maintain coverage under your spouse’s workplace plan through COBRA. This means that you can continue the employer group insurance but you have to pay the premium plus an administrative fee to the insurance plan. This may be costly. You may be better off paying for private health insurance. Alternatively, you can seek insurance through your own employer, the health insurance plan marketplace, or you can apply for Medicare or Medicaid (depending on your age). Note that your children may still be covered under your spouse’s plan, but you may be required to help cover a portion of it as part of child support.
Homeowners Insurance After Divorce
If you and your spouse are both planning to stay on the title for your home until after the kids grown, it is recommended that you both remain listed on the homeowner’s insurance policy. However, if you will be taking ownership of the home, then your spouse would be removed from the plan. Alternatively, if you are renting and your spouse is taking ownership of the home (or it is being sold), you might want to consider renter’s insurance to protect your property in the event of a fire or another catastrophic event.
Life Insurance After Divorce
Life insurance is one of the most commonly overlooked insurance types, but it can also be the most critical – especially if you and your spouse share minor children. An important aspect to consider is whether your spouse should have a life insurance policy to cover child support or alimony payments that may go unpaid, should something happen to your spouse before the term of the agreement has ended or the children reach majority. I always discuss these options with my clients that are receiving child support and/or spousal support. It is better for the beneficiary to hold the policy, that way it is protected from accidental (or intentional) lapses.
Divorce is a complex process, with many factors and aspects to consider. I can help you navigate through this process. With over 24 years of experience, I have the knowledge and skills to assist with even the most contentious of cases. Schedule your consultation with Debora A. Diaz, Esq.
Know your rights. To discuss divorce or other family law matters call Debora A. Diaz at 727-846-1802.
Written by Debora A. Diaz, Esq.
Practicing Divorce and Marital Law since 1995. Serving New Port Richey, Trinity, Wesley Chapel in Pasco, Pinellas, Hernando and surrounding counties.