When a marriage ends, assets are divided according to state law. However, Connecticut residents are reminded that issues like property division and child support are not the only ones at play in a divorce. In many cases, insurance will have to be restructured to accommodate the divorce.
For example, in the case of health insurance, it is common for a spouse to be registered under the other spouse’s plan through work. Generally speaking, this coverage is terminated when the divorce is finalized. However, it may be possible to stay with the same plan if the subordinate spouse begins paying for his or her own coverage, depending on the plan and/or provider.
Car and other property insurance should also be considered. If one spouse is keeping a shared home or vehicle, the insurance pertaining to those assets must be transferred solely to the spouse who is now considered the owner. In the case of auto insurance, if any minors are listed under the policy, they may need to be separately insured under their other parents’ new policy once it becomes active.
The process of handling insurance during divorce can be complex. This is why Connecticut residents may benefit from reaching out to professional advisors to help navigate this process. A qualified divorce attorney can help to clarify what needs to be done to ensure his or her client remains fully insured once the divorce is finalized. This, in turn, lends a peace of mind that can help to offset the stress of divorce.
Source: Forbes, “5 Crucial Insurance Changes After Divorce”, Barbara Marquand, May 25, 2016