There are many considerations a separating couple must address when dividing assets and responsibilities. Many Connecticut residents facing divorce will focus on large issues like child support and debt division. However, of equal importance is the issue of insurance — from life insurance to car insurance. How do couples facing separation deal with dividing these critical policies?
In the case of life insurance, determining whether policies are whole life or for renewable terms can be a helpful starting point, as this will influence how a policy can be handled. It has been recommended that separating couples include life insurance policies as part of their assets in divorce settlements. It may also be important to consider taking out new policies to ensure a consistent influx of alimony or child support should one spouse pass away.
Policy changes may also be required in the case of health insurance. Often, couples share benefits under one spouse’s employment plan, and this will have to be addressed as part of the proceedings. Unemployed spouses face additional challenges in this arena. However, support options are available for those who are not covered by their own policies.
Everything from car insurance to long-term care planning will be affected by a divorce, as many Connecticut residents already know. In order to ensure an equitable split of assets and protections, it may be helpful for couples to seek mediation support in order to learn what steps must be taken to ensure coverage in all aspects of their new, individual lives. This is of particular importance in cases of divorce where children are a factor.
Source: Fox Business, “How to Uncouple Your Insurance in Divorce,” Michele Lerner, May 31, 2013