As if there isn’t already enough on your plate during a divorce! On top of the stress and emotional strain, you have an endless list of things that need to be done. Like the piles of papers you need to sort through to find that one document for your attorney. Or setting up new bank accounts and trying to figure out how to go about planning your newly single future. Or handling your kids, who are struggling with the divorce and acting out in all kinds of ways. It’s very overwhelming, we know.
Though you may be feeling swamped right now with all of the other things you have to take care of in the wake of your divorce, dealing with your insurance policies is critical. Yes, we get it – right now it sounds like just one more thing at a time when you are feeling overloaded. But trust us, this is one item you don’t want to let slide.
It is important to know that the divorce process, once it has begun, might mean an immediate temporary injunction is initiated regarding finances and insurance. This means that a judicial order forbids either spouse from making any changes to any of their insurance policies. However, once the divorce is over, you will need to deal with your various policies in a timely manner.
For many people, that means having their names removed from an existing policy they share with their spouse, removing their spouse from a policy, or simply canceling a policy and pursuing new ones that are more applicable to their post-marriage life. Whatever the case may be for you, we wanted to provide a basic look at the most common policies that, in the wake of divorce, will need to be addressed.
Health Insurance:
While some couples each have their own insurance through their respective jobs, some couples consist of one wage earner who provides insurance for their family, and one spouse who depends on their partner for health insurance. Once a divorce is final, however, that dependency will end.
For people who rely on a spouse for health insurance, and who are currently engaged in a divorce, they will need to be prepared. There are a number of options available to these people, including seeking out new employment that provides health insurance, paying for health insurance, researching whether you can pay for coverage through your spouse’s employer (COBRA) or applying for health insurance through the Obamacare exchange.
Under the ObamaCare Act, there is a penalty for people who do not have health insurance coverage. If you are avoiding getting health insurance because you believe it is too expensive, remember that in the end, you are unfortunately going to pay one way or another.
Homeowner’s Insurance:
When a couple parts ways, usually either one of them stays in the family home, or both of them leave and seek out new places to live. If you and your spouse decide that one of you will be keeping the family home, be sure that only the person staying, remains on the homeowner’s insurance policy.
For people moving out of their Michigan family home, it is important that they remove their name from the insurance policy. In the event that they purchase a new home. If they choose to rent, then they would be encouraged to seek out renter’s Insurance to protect their belongings from fire and water damage and burglary.
Join us next time, when we will be wrapping this up with a look at Car Insurance and Life Insurance, and how divorce necessitates change for both of them. We will also be looking at how separation before divorce can affect your insurance policies. It may not seem like the most exciting subject, but taking care of these issues now can save you money and headaches in the future!
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