Divorce With Respect

Insurance issues in planning for divorce

On Behalf of | May 23, 2018 | Divorce, English, Firm News | 0 comments

A great deal of planning goes into a divorce. Potential divorcees must consider the financial aspects of a split, but one issue that may be overlooked is insurance coverage. This can be especially important if couples have a considerable estate.

Essentially, divorcing parties will have to modify their coverage on their automobiles (especially if they have teens who drive), as well as their life insurance policies. For those with additional properties or joint assets that will be divided (such as ATVs, antique collections or boats) further coverage will be changed.

Most importantly, they will have to come to agreements on health insurance coverage for their children. Medical coverage is held in a different regard compared to marital assets because parents, as a matter of law, have a responsibility to maintain health care coverage for their minor children. Because of this, medical coverage is included in child support costs (along with basic support).

Parents may disagree on which parent will carry the child on their respective coverage. In a nutshell, the law requires the child to be carried on the most beneficial policy. This can create some additional acrimony (as parents may be angling to save money on coverage), but it is usually beneficial for parties to come to a consensus over basic coverage. After all, it is not health care premiums that cause financial discord, it is the costs not covered by insurance (i.e. unreimbursed expenses) that drive parents into financial peril. Courts often require parents to split these costs equally.

As you make your plans for divorce, it is prudent to discuss future insurance coverage with your attorney and your insurance agent.

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