Adjusting your insurance policies after divorce
Divorce demands personal, emotional and financial adjustments. In addition to legally finalizing your divorce, you will likely have to make other changes, including adjustments to an existing insurance policy. After divorce, strategically transitioning of homeowner's insurance, healthcare, life and car insurance is necessary ensure adequate coverage.
If you are divorcing or recently divorced in Salt Lake City, Utah, here are some tips to prevent overinsurance, under insurance and the risk of no insurance at all:
Health insurance: Most likely, you will need to change health care providers after divorce. While staying on a spouse's insurance may save you in the short-term, failing to report a divorce could result in denied coverage or accusations of insurance fraud. If you don't have insurance through an employer, you may be eligible for COBRA, a temporary extension of coverage. Medicaid, is also an option, if you qualify. You will also have to decide the best policy for your children.
Life insurance: Usually a life insurance policy is owned by the primary earner, with the spouse covered on an attached policy. After divorce, a spouse would have to be released from the policy, buy additional policies, or name a different beneficiary. Insurance coverage can be detailed in a divorce settlement.
Car insurance: When sharing a residence, it is likely that you will also share a car insurance policy. After divorce, you will likely move out and need to adjust your policy. Generally, automobile insurance can be negotiated in an alimony agreement.
Home owner's insurance: After divorce, you should be able to reduce payments, especially if a spouse has moved out and removed belongings. If you have moved out and are now renting, you may want to invest in an additional policy.
When dealing with the financial overhaul of a divorce, you want to make sure your rights are protected. An experienced attorney can review your legal options and help you protect your interests through strategic negotiation and settlement.