Divorce and its impact on your health insurance coverage

Divorce causes major concerns with health insurance benefits. Many households have employer provided and/or paid for medical insurance benefits that cover the whole family. It is not unusual to see circumstances where the other spouse is a stay at home parent, with absolutely no access to medical insurance benefits, or used at a job with either no medical insurance advantages available or those benefits offered at a substantial expense. After a divorce, the spouse with the household health insurance coverage can no longer cover the other parent. They are no longer “family” members who can benefit from one health insurance policy. How to then guarantee that everybody remains insured does end up being an issue for settlement and/or divorce lawsuits. Expert family-law attorney Peter Cedeno from New York shares his knowledge with us on this subject today.

Insurance policy on a desk.

Health insurance can become expensive post-divorce.

If both parties do not have health insurance advantages readily available and if the expense of obtaining those health insurance benefits for the other celebration after a divorce become excessive, there is one way to continue benefits without additional expense. That way is to enter into a separation contract, however postpone the divorce. That method, the parties actually do remain married and they can remain on the very same medical insurance strategy even believed they are separed. The celebrations can grant waiting for one, two or more years before either one apply for a divorce. While the celebrations will stay married, their support, custody, and home concerns will be resolved in their separation arrangement. Under some scenarios, this is an optimal resolution. What if both celebrations desire one spouse to remain at house for numerous more years with young kids, however they do still desire to different and divorce? This alternative works for them. They can separate, agree upon getting a divorce and all of the terms that they need to concur upon, but postpone the last divorce so that they can keep cost reliable health insurance advantages in location.

The above example can provide some difficulties that need to be discusse in information with your divorce attorney. If you different but do not divorce, your federal tax filing status may be impacted. Likewise, in some states, it is not as simple as in other states to implement a separation contract. Or, in yet other states, it is possible for one spouse to take the advantages provided by the arrangement for a year or 2 and after that litigate and seek entirley various kinds of financial relief in a divorce action. Just a divorce lawyer certified to practice in your state can advise you on these concerns.

Another choice for couples divorce is COBRA protection. COBRA is a federal law which mandates that an individual covered under a health insurance policy be offered the right to continue that coverage, at their own cost, for a set time period if certain requirements exist. For instance, if you acquire a divorce and your partner had household medical insurance coverage through his employer, the employer would need to supply COBRA protection for you after the divorce. That COBRA coverage would need that you have the exact same health insurance policy, although your coverage would now be specific and not family. You would have to pay the employer’s cost for that specific policy.

It is not unusual for a remain at home spouse or a partner who has less income or employment alternatives to obtain COBRA coverage and to negotiate that their partner spend for that coverage for a defined period after the divorce. In doing so, this offers the partner who did not have protection offered a long time to either acquire employment with coverage or become financially settled and able to afford their own protection.

Divorce triggers significant problems with health insurance advantages. After a divorce, the partner with the household health insurance coverage can no longer cover the other moms and dad. If both celebrations do not have health insurance advantages available and if the expense of getting those health insurance coverage benefits for the other celebration after a divorce ended up being expensive, there is one method to continue benefits without extra cost. They can separate, agree upon getting a divorce and all of the terms that they have to concur upon, however delay the final divorce so that they can keep expense effective health insurance coverage benefits in location.

If you obtain a divorce and your partner had family health insurance coverage through his employer, the company would have to provide COBRA protection for you after the divorce.

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