Over the course of a marriage, many assets can accrue that will need to be divided during a separation. But one thing Illinois couples facing divorce may not consider is how their insurance will be split. It is important to consider how such insurance plans as car, life, health and long-term care will be disseminated both in terms of benefits and responsibilities in the wake of a divorce.
A divorce brings about new financial context for both individuals, and that can include restructuring health insurance to ensure both former spouses have adequate medical coverage. This is particularly important for spouses who are no longer part of the work force, as they are entitled to additional support in the face of a divorce in which their primary insurance was granted through a spouse’s employer. It may prove to be in the best interests of both parties to deal with health insurance immediately.
Additionally, many couples are unaware that removing one name from an insurance plan for home or vehicle coverage can leave one spouse without any support should an untimely accident destroy assets. It can be helpful to notify all insurance companies of an impending divorce as soon as possible to minimize the potential for miscommunication. Ultimately, it is the responsibility of the insured party to make the necessary arrangements to alter their insurance plan to suit their new situation.
Illinois residents know how difficult divorce can be on both parties involved. In order to make the transition to a new life as smooth as possible, it may be worthwhile to look into insurance considerations early in the divorce proceedings. This can help to take care of critical support networks well in advance of becoming single.
Source: Fox Business, “How to Uncouple Your Insurance in Divorce,” Michele Lerner, May 31, 2013