If you are in the middle of a divorce, it is not just your friends, your belongings and your children you are splitting. Your finances can be greatly affected by a divorce, and while you may understand the basics of child support and alimony, you may not think about the reality of how insurance changes after divorce.
There are several types of insurance plans that will change after a divorce, and you must both be prepared to handle them to protect your finances.
You are probably on a family auto insurance policy to get discounts and benefits. Once you have divvied up the vehicles, you will want to get separate insurance policies for each driver and vehicle. If you have teen drivers, they may need to be put on both policies, but your insurer can answer that question for you.
Health insurance is a constant worry for millions of Americans, and if you rely on your spouse’s employee coverage, it just became a problem for you. Once your divorce is finalized, you are no longer able to rely on the employee coverage. You may be eligible for a COBRA plan for up to three years, but your best bet is to get your own health insurance policy as quickly as possible.
Some divorce decrees require that one spouse purchase a policy that lists the other as the beneficiary even after the divorce. This allows the living spouse to care for any dependents who are still in the home. It is always a good idea to check who the beneficiary is on any of your life insurance policies. You never know when the unthinkable is going to happen, and it often makes sense to remove your ex from your existing policy.
Keep it simple
Divorce can be complicated and messy, but with an attorney on your side, you can rest assured that your best interests are always protected. If you are facing a divorce, contact an attorney immediately.