Arguments about money are a common factor in divorce. Divorce and finances can go hand-in-hand for some couples in Gulfport. Of course, many people know that in divorce their marital assets, including financial assets, will be divided. After the property division process is complete, an individual may find that they still hold certain insurance policies. It is important that these policies are updated as is necessary after a divorce, to avoid personal and financial problems down the road.
One type of insurance policy married couples may have is a life insurance policy. If one spouse retains the life insurance policy after the divorce and has no ongoing obligation to provide life-insurance as a type of financial support for an ex, then the policy holder may want to remove his or her ex-spouse as a beneficiary. That way, once the policy holder passes away, the life insurance proceeds will go to the person of his or her choice, rather than to an ex.
Health insurance is another type of policy that will need to be addressed after a divorce. An individual can keep his or her own health insurance policy after the end of their marriage. However, in general after a divorce, an individual cannot stay as a dependent on his or her ex's policy. Individuals in this situation have options. Sometimes, they can sign up for insurance through their own employer. Otherwise, they may be able to purchase a health insurance policy from the insurance company directly or they could purchase a health insurance policy through the marketplace in their state. Finally, they could keep their ex's insurance, but pay for it on their own through the federal Consolidated Omnibus Budget Reconciliation Act.
Other types of insurance policies that may be affected by divorce is home insurance, automobile insurance, renter's insurance and disability insurance. In the end, it is important to understand how divorce will affect each of these policies. Fortunately, help is available to those who need more information about this topic.
Source: Forbes, "5 Crucial Insurance Changes After Divorce," Barbara Marquand, May 25, 2016