There is more to a successful divorce than getting through equitable distribution. At Petrelli Previtera Schimmel, LLC, our divorce attorneys focus on securing our clients’ future well-being. In addition to reviewing a couple’s assets, we discuss all their options regarding child custody, spousal and child support, and much more. We also think strategically about how insurance changes after divorce can be beneficial.
Attorneys can protect their clients by including provisions for insurance plans in the divorce agreement. For example, how we plan life insurance, health insurance, and auto insurance can ensure our clients will receive the benefits of their agreement now and in the future.
Life Insurance Changes After Divorce
A life insurance plan can guarantee financial support for beneficiaries in the event of a spouse’s death. The spouse with the policy can designate his or her children as beneficiaries. He or she may also be able to use the policy as an investment tool.
If a life insurance policy will secure support obligation payments for a set period of time, the insured should consider changing the beneficiaries of the policy after that period has expired.
In many marriages, one spouse provides health coverage to the other, whether through work or individual heath insurance. After divorce, the spouse who did not hold the insurance plan must transition onto his or her own plan. However, the change often does not need to happen immediately, thanks to federal and state COBRA plans. These programs extend the dependent spouse’s coverage for a while after divorce.
Divorcing spouses should explore their options early with their attorney. Once the divorce is finalized, the spouse who provided coverage during the marriage will not be able to continue to do so.
When a couple divides their vehicles as property and moves to separate residences, their auto insurance will need to change. A driver’s residence and the location of the car both affect the price of insurance. Failing to update these plans can create problems in the event of an accident. For example, an insurer may deny a damage claim if physically separated spouses remain on the same policy.
Once one spouse moves out of the marital residence, the spouses should be on different policies. The property settlement agreement should also list the vehicles owned by each spouse and designate who will pay for the insurance on each.
If you have decided to move forward with divorce, we can help. Feel free to contact our firm with any questions.