Insurance Considerations When Divorcing
Divorce can have many effects on your personal life and finances. It is important to be prepared and know exactly how divorce will affect your various types of insurance. At the Drake Law Firm, we want to help you feel educated and less stressed about your divorce. It could mean meeting with your divorce attorney, insurance agent, or insurance company. Here are some important considerations and tips.
Homeowner’s Insurance
Typically, one spouse or both spouses will change their living situation after divorce. If there is a change to the ownership of the home, the insurance policy will need to be adjusted to accurately reflect who owns the home now. The policy will also need to be changed to reflect the property coverage of things such as jewelry, artwork, and any other personal property covered. Additionally, if you are moving into an apartment or rental home, you should consider renter’s insurance – it is mandatory for some apartments and rental homes.
Life Insurance
Life insurance is unique to every divorce. Some spouses keep each other as beneficiaries in case there is an unexpected passing, and the children need to be taken care of. However, if you do not have children, you may want to remove your former spouse as a beneficiary and update your life insurance policy. Sometimes it makes the most sense to get a completely new life insurance policy. Your attorney or insurance agent will be able to provide guidance.
Health Insurance
If you and your spouse have separate health insurance, no changes will need to be made to your policy. But, if you and/or your children are on the same policy, there are a few options. The first option is signing up for health insurance through your employer and adding your children to the policy if needed. The second option is buying health insurance through the state marketplace or a private insurer. The third option is to see if you and your children are eligible to remain on your ex-spouse’s employee health insurance through COBRA (Consolidated Omnibus Budget Reconciliation Act).
Auto Insurance
If you and your ex-spouse will be living separately, then you will need to update your auto-insurance or get a new policy. Additionally, if the ownership of the car is changing then you will need to update the policy or get a new one. It is important to make sure your car is properly insured so that you and your ex-spouse are not financially liable for each other.
Contact The Drake Law Firm Today
Insurance and divorce can be complex, but it doesn’t have to be. If you have any questions about your current or future divorce, contact our team of experienced family law attorneys at the Drake Law Firm today by giving us a call at 303-261-8111.