When you and your spouse obtain a divorce, you will have to go through
what may be a long and complex process of dividing your possessions. Many
couples, however, are not aware of how their insurance coverage is handled.
Who gets to keep a policy? What happens to any benefits? These are all
questions that are frequently asked and can sometimes be complex when
taken to court. As with all of the other major factors, each divorce case
is unique and you should speak to an attorney for personalized advice
that can be tailored to your exact needs.
As soon as your divorce is finalized (along with the property division
of who takes which car), call your company and let them know about the
separation. You both may need to take out new policies under your own
name, and you may lose some discounts that you had before. This may be
a good opportunity to shop around and compare rates to help save you some money.
Once your divorce becomes finalized, the spouse who takes possession of
the home should be the only one on the homeowners’ insurance policy.
Call your company and make this switch as soon as possible. Likewise,
the spouse who moves out may wish to take out insurance for their new
living situation, whether it is, to protect them in the event someone
gets injured at their home or their child causes accidental damage.
If you have your own health insurance through your employer, you can easily
keep it after your divorce, but must remove your spouse as a dependent.
If you were a dependent on your spouse’s policy, you can purchase
your own private insurance or opt into your employers if they offer it.
If neither of these are an option you could sign up for an extension of
your ex’s plan but pay for it yourself through the Consolidated
Omnibus Reconciliation Act of 1985 (COBRA). This allows you an extension
of up to 36 months.
To learn more about your options for insurance coverage and how they relate
to your divorce,
contact Peek Family Law today by calling (303) 857-5797.