Insurance policies and property division
Just as it takes time to build a life together in marriage, the process of dissolving that marriage can take time as well. Often times, separating couples in Utah may be surprised and/or overwhelmed by factors such as property division and child custody arrangements. However, it’s very important to ensure that investments like insurance policies are accounted for at the time of divorce to help ensure savings are secured and both parties are held responsible for their contributions.
Medical/Disability/Long Term Coverage
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives individuals without their own medical insurance the option to remain on their partner’s plan during the divorce process. Typically, a person may be covered through COBRA for 36 months, which can give them the chance to obtain their own plan. And beyond deciding how to provide for each other’s health insurance needs, divorcing parents must also settle on who will cover the children’s medical expenses.
Similarly, figuring in disability insurance coverage can be helpful too. Not only do both parties need access to disability benefits in the event they become ill or injured after the divorce, but anyone anticipating spousal support should consider how it can be effected by their ex becoming disabled. Likewise, long term care coverage may be a wise investment for older individuals.
Many divorcing individuals find that their liability insurance premiums increase once they switch to single plans. Though, it’s crucial that people continue to maintain insurance on investments like the family car and house throughout divorce proceedings to ensure there is no lapse in coverage.
Life Insurance Policies
Many life insurance policies are considered long term investments, and are therefore included as assets when calculating divorce settlements. Furthermore, such policies can be used to safeguard alimony or child support payments if one spouses passes.