When people in Florida decide to divorce, they can encounter a range of financial questions and challenges. While many people are aware of the effects of property division and other major issues, fewer may think about the consequences of divorce for their insurance situation. Divorce can lead to several significant changes in insurance coverage, especially when it comes to life and health insurance. Most of these changes should be handled promptly after the dissolution of the marriage is finalized.
In terms of health insurance, it is common for one spouse to receive coverage through a policy provided through the other spouse’s employer. After the divorce, the spouse with this plan will need to report the change in status promptly to the insurance company, leaving the remaining spouse in need of coverage. Divorce is a qualifying life event that allows people to enroll in the coverage provided by their own employers or to seek out a new plan on the government marketplaces under the Affordable Care Act. COBRA allows a former spouse to remain on an insurance policy for three years after a divorce, but the associated premiums can be far more costly than the available alternatives.
Life insurance should also be considered during the divorce. When spousal support is involved, both parties may negotiate a life insurance policy that would provide coverage for the support costs in case of an untimely death of the paying spouse. In addition, people will generally want to remove their former spouse as the beneficiary of their life insurance policies after the divorce is finalized.
Insurance is only one of the many financial matters that need to be handled along with the finalization of the divorce. A family law attorney might be able to provide advice and representation on a range of legal matters, including property division and spousal support.