How Divorce Affects Insurance

Generally, you cannot change beneficiaries of insurance or accounts (including, but not limited to, health insurance, life insurance, retirement accounts, bank accounts, investment accounts) or ownership of property of any kind while a divorce is pending.  The only exception is if you have a Court Order or agreement approved by the Court due to a special circumstance allowing the change during the divorce process, but the courts generally require both parties to maintain the business regarding these matters until the divorce is finalized.

After a divorce, an employer or outside plan will not allow a party to keep their ex-spouse on health insurance.  Spouses losing their coverage due to divorce are entitled to continue their coverage under COBRA for up to three years, but this is rarely an affordable long-term option.

If your spouse covers you on their health insurance, it's best to begin searching for health insurance options during the divorce process so you can be ready to implement your own health insurance plan just before or at the time the Judge signs a divorce agreement or decree. 

If you cover your spouse's health insurance on your plan, contact your human resources department or outside plan with a Judge-signed copy of the divorce decree or agreement after approval by the Court to remove your spouse after your divorce is final. If you want to keep your spouse on your plan, consider a legal separation in place of divorce. Most plans allow coverage to continue to both parties even after a legal separation is established.

This is general advice, please consult with your employer, health insurance administrator, financial advisor, and family law attorney before making any decisions.

This blog does not constitute legal advice, nor does it establish an attorney client relationship. This is for general information purposes as in most legal situations the facts and terms of an agreement between the parties can affect the results.