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Preparing to Handle Your Insurance When You Divorce

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Dealing with insurance is a common aspect of a divorce that anyone can forget, and yet if we are in a car accident and don’t have insurance we could not only be paying top dollar in car damages but also medical damages, and that is not a good place to be in. While there are not as many single income families in today’s society, there are still a lot of one working parent households with the other spouse who stays at home with the children. If this is the case, the parent staying at home is dependent on their spouses insurance for coverage.

There may be some married couples that are both working, and yet one isn’t eligible for their own coverage and so they rely on their spouse. So what happens when there is a divorce? Should an individual be forced to have no coverage while they hope to find a job or a better job that has good benefits? Other couples may choose to try and stay ex-spouses plan for coverage, and yet if the insurance company realizes that you are no longer eligible for those benefits they can drop you at any time and consider you and your ex responsible for insurance fraud.

Some benefits plans have options for temporary coverage while the other spouse looks for their own plan after a divorce, though it depends on the specific plans. If you are considering a divorce with your spouse, here are a few things about insurance that would be helpful to know ahead of time. Discuss these concerns with your divorce attorney; they will be able to help you in the process of dividing your assets, etc.

Health Insurance: In the event you and your spouse choose to divorce and you are dependent on their insurance, the COBRA plan is available for spouses temporarily for coverage. The downside to this is that you will be required to pay the full price with COBRA, until you find your own benefit plan that is less expensive. In 2014 when the Affordable Care Act is officially started, there will be a lot more options for cheaper healthcare to those who have gone through a divorce, though now there are still good deals that can be found for those not covered by their employers. Another aspect of health insurance that will have to be addressed is the issue of children, if you and your spouse have kids you will need to determine which medical coverage they will be under as well as deciding how to pay for it together.

Life Insurance: There are many details involved specifically with life insurance policies, and many strict rules as to what it looks like to switch beneficiaries in the event that a couple chooses to divorce. Some spouses may choose to keep their ex as a beneficiary in the event that their kids need extra support down the road. Keeping a spouse on your plan will cost more now, but it will pay off in the long run if something were to happen to you and the kids needed extra help financially. Life insurance plans tend to run with the breadwinner of the home, and in if the couple choses to stay on the same plan, the court will help determine payment plans on behalf of the other spouse who will stay the beneficiary.

Car Insurance: At the time of your divorce, you and your spouse will have chosen who gets which car. At that time then you will each be responsible for the respective cars insurance. Alimony is a great way to receive help financially when needing to make payments like this.

Home Insurance: Depending on the specific situation, a couple may choose to divorce and have one spouse keep their original home. In the event that you and your spouse have equally divided your assets, it is likely that you will be able to apply for a lower home owner’s insurance payment. If you are the spouse who has moved out and have chosen to rent an apartment for example, applying for renters insurance is a wise idea as well, and will cost you significantly less money.

As you can see, filing for divorce includes many different facets, and with the help of a skilled divorce attorney they can be sorted through with ease. Filing for a divorce may be overwhelming for some, and that is why an attorney is so helpful, having someone who understands the laws pertaining to your specific state as well as experience with divorce law can make the process a little easier on you. For a family law attorney who can help you in the Florida area, contact Hutchinson Law today!

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