What Insurance Issues Do I Need to Consider During Divorce?
Divorce can be a complex and difficult process, and there are usually a number of financial and emotional implications for those involved. During this time, it can be especially difficult to stay on top of important accounts; however, it is extremely important that you review insurance policies, in particular, in order to figure out what you have to do to make sure that you are taken care of with respect to these policies. This is especially important when it comes to health and life insurance, as we discuss below.
Health Insurance
It is common for one individual to be covered under the other spouse’s health plan while they are married. However, this can sometimes cause issues during divorce in terms of this spouse transitioning onto other coverage. The Consolidated Omnibus Budget Reconciliation Act, also known as “COBRA,” was designed to help the individual who was covered under their ex’s health plan to continue this same coverage for at least three years after the divorce. However, while convenient, these days, it isn’t necessarily the cheapest solution, especially since the Affordable Care Act has since made a number of other insurance options even more affordable. The three-year time limit can also make it a challenge.
Life Insurance
Life insurance is another important consideration for individuals who are going through divorce. Not only can life insurance policies be incorporated into the divorce decree as marital assets, but life insurance is especially beneficial in that the payments continue even if the payer passes away (unlike spousal support). However, you want to work with your attorney to make sure that you have complete control over any life insurance policy that you plan to hold onto you so that you don’t risk any lapses in payment or other changes that could affect your coverage. It also needs to be arranged for before the divorce is finalized in order to make sure that every requirement has been satisfied, such as the individual the policy is based on is actually insurable.
Contact Our Florida Divorce Attorneys To Find Out More
Figuring out insurance policies after divorce can be complicated, just like a number of other financial items that come up during divorce. However just like everything else, you need to be prepared and know what you have and what’s coming. The last thing that you want to risk is being in the dark when it comes to your finances during this time.
Speak with our Orlando divorce attorneys at the Arwani Law Firm, PLLC today to find out how we can help ensure that you are taken care of when it comes to holding onto these policies, as well as other issues that come up during a Florida divorce.
Resource:
forbes.com/sites/catherineschnaubelt/2019/04/29/insurance-issues-to-consider-in-a-divorce/#5b50413cb5d1
