Divorce can often times cause issues in medical insurance coverage for divorcing couples. Many families are protected under an employee plan carried by one of the spouses, but in the event of divorce, such a policy could terminate for the non-employer protected spouse. Unless the insurer allows it, and the divorce decree also requires continuation of medical health insurance, temporary coverage may be provided by the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA is designed to protect employees of most companies with twenty (20) or more workers and their dependents from losing group insurance coverage as a result of job loss or divorce. If you and your former spouse maintained family health coverage through work, COBRA will enable you to continue this coverage at your own expense for up to thirty-six (36) months, until you remarry, or until you get coverage under another health group plan. Health insurance issues are usually best covered in an uncontested divorce, if they are a significant issue for the parties.
Another potential risk to your income could occur if your spouse becomes disabled and you receive alimony and/or child support. If he or she cannot work any longer due to disability, the court could lower or eliminate the payments completely, leaving you with a large financial burden. Planning for a disability policy should be completed before the divorce is finalized. However unlike life insurance, you can’t own a disability policy on someone else. Therefore, the divorce decree could require your ex-spouse pay premiums on a policy and submit proof that the policy is in force regularly. This is an issue that is best done in settlement negotiations for an uncontested divorce.
As for property insurance, real and personal property must be insured by the actual owner of the property. Make sure that any policies that do not reflect this are modified and updated leading up to, during, and after the divorce. With respect to divorcing homeowners, there are several options: the home can be sold immediately and the proceeds divided, both spouses can continue to own the house jointly with a view toward future sale, or one spouse can keep the family home and buy out the other’s interest. In any event, the parties need to make sure their is no lapse in insurance coverage during the divorce process. Speaking with the insurance companies and agents early on is important. These are issues that insurance companies work with everyday, so guaranteeing that there will be no lapse in coverage should not bee too difficult.
If you are going through a divorce and need to speak with an experienced Georgia divorce attorney, call us today at 770-609-1247. Additional information can be found here. >>
Updated: 2022-08-14
