Insurance and Divorce: How Your Policies Might Be Affected

With all of the emotional and financial demands that come with divorce, the last thing you want to worry about is an accident or illness bankrupting you. Ensuring that you maintain appropriate health and car insurance during and after a divorce is crucial. However, divorce can impact your coverage options and expenses, so you should plan ahead.

Health Insurance Options During and After Divorce

If both parties have been covered by the same insurance policy during the course of the marriage, this arrangement will likely continue until the divorce is finalized. It is rare for one partner to be removed from a policy prior to a final divorce decree. In fact, the Automatic Family Law Restraining Orders (ATROs) contained on the Family Law Summons (FL-110) provides for health insurance cannot be canceled during the pendency of a divorce action.  If you are considering changing insurance coverage during your divorce, you may want to discuss this with an attorney to ensure all proper notices are given. After a divorce is finalized, each partner must plan ahead to ensure that there is no lapse in coverage after the divorce. If you are at risk of losing coverage after divorce, you may want to discuss options with your attorney. You may qualify for coverage through your job, through the Marketplace, or through the state.

COBRA Benefits

After a divorce, you may be able to remain on your ex-spouse’s insurance on a temporary basis through COBRA. This coverage is available to those who meet certain specifications for up to 18 months after a divorce is finalized. COBRA is often the most expensive method to continue with health insurance but may be the best method depending on your circumstances.  This may provide you with enough time to secure coverage elsewhere.

Car Insurance 

If you and your spouse are on the same car insurance plan, know that this will most likely continue until the finalization of the divorce. When a divorce case is filed, the court requires that all types of insurance coverage are kept the same until the divorce is finalized. This prevents one party from removing the other from their plans and putting them in an unsafe position. If your soon to be ex-spouse removes you from or cancels your insurance, it is imperative you immediately speak with an attorney. 

It is important to note that getting divorced could affect your monthly payments. Many insurance companies offer a discount for multi-vehicle households and a discount for married drivers. You may lose both when switching to a policy that only covers you.

Who Pays?

Until the divorce is finalized, the person who was paying prior to the divorce filing may have to continue paying, absent a court order stating otherwise. If one party earns significantly less than the other party, the higher-earning spouse may be ordered to subsidize their ex-partner’s insurance costs. This may be more likely if parties have joint physical custody or the lower-earning spouse has sole custody since children also benefit from comprehensive car insurance.

Insurance is just one of many financial issues to discuss with an experienced family law attorney when divorce is on the table. Schedule a consultation now—call The Grey Legal Group to get started.

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The Grey Legal Group

At The Grey Legal Group, we believe in helping all families with their legal needs so they can be protected on your journey back to a calmer, happier place of stability. Whether it is divorce, child custody, guardianship, domestic violence, or adoption, we have seen it all before and we can help you through it. With the legal knowledge and experience we bring to the table, we will be certain to find the best and most efficient solution to your situation.

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