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Dividing insurance with shared custody

After a divorce, parents must determine financial responsibilities for children of shared custody. While you may have come to a settlement regarding assets, debts and property, you will likely have ongoing issues regarding costs, including insurance coverage. Arranging health insurance for children after a divorce may not be too complicated,; however, you will also have to come to an agreement about other forms of insurance, including car insurance, homeowners' insurance and life insurance.

Usually when establishing health care for children, one parent will be obligated or will be in a better position to provide insurance through employment. The responsibility typically falls to the parent who has provided insurance during the marriage. Even though the coverage may be provided through one parent, it is usually the case that parents will split the costs 50-50. This can become more complicated if parents have shared custody and one parent moves out of state. Some health insurance companies won't provide coverage outside of Salt Lake City, Utah, so you may have to find additional insurance coverage.

Cost of insurance is often factored into the amount of child support and can be either increased or reduced depending on existing financial arrangements. Under the Patient Protection and Affordable Care Act, children can remain on parents' health insurance until they reach the age of 26, regardless of whether they are married, at home, still in school, or they are covered on another health care plan.

As far as other forms of insurance, including car insurance for a teenager, parents will have to negotiate the terms, which can be in a divorce agreement. Parents should also meet with insurance agents to ensure that they have proper coverage for a teen. If parents have shared custody, both should include the teenage driver on their policy.

Life insurance is also an important consideration. In some instances, a parent may be required to maintain life insurance on the children and the spouse. These details can be complex so it is important to consult with an experienced legal advocate or financial planning expert when negotiating the terms of a divorce settlement.


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