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Divorce | Health Insurance Benefits


Divorce causes major issues with health insurance benefits. 
Many families have employer provided and/or purchased insurance benefits that cover the whole family. It is not uncommon to ascertain situations where the opposite spouse may be an occupy home parent with absolutely no access to insurance benefits, or employed at a job with either no insurance benefits available or those benefits available at a considerable cost. After a divorce, the spouse with the family insurance coverage cannot cover the opposite parent. They are not “family” members who can cash in of 1 insurance policy. How to then make sure that everyone stays insured does become a problem for negotiation and/or divorce litigation.

 If both parties didn't have insurance benefits available and if the value of obtaining those insurance benefits for an opposite party after a divorce become prohibitive, there is one way to continue benefits without additional cost. That way is to enter into a separation agreement, but delay the divorce. That way, the parties actually do remain married, and that they can stay an equivalent insurance plan even though they're speared. The parties can consent to expecting one, two or more years before either one files for a divorce. While the parties will remain married, their property, custody, and support issues are going to be addressed in their separation agreement. Under some circumstances, this is an optimal resolution. For example, what if both parties want one spouse to stay reception for several more years with young children, but they are doing still want to separate and divorce? This option works for them. They can separate, agree upon getting a divorce and every one of the terms that they need to agree upon, but delay the ultimate divorce in order that they will keep cost effective health insurance benefits in place.

 The above example can provide some difficulties that have got to be discuss intimately together with your divorce attorney. For example, if you separate but dont divorce, your federal tax filing status could also be affected. Also, in some states, it's not as easy as in other states to enforce a separation agreement. Or, in yet other states, it's possible for one spouse to require the benefits provided by the agreement for a year or two then attend court and seek entirely different sorts of financial relief during a divorce action. Only a divorce attorney licensed to practice in your state can advise you on these issues.

 Another option for couples divorce is COBRA coverage. COBRA may be a federal law which mandates that an individual covered under an insurance policy tend the proper to continue that coverage, at their own cost, for a set time period if certain requirements exist. For example, if you obtain a divorce, and your spouse had family insurance coverage through his employer, the employer would need to provide COBRA coverage for you after the divorce. That COBRA coverage would require that you simply have an equivalent insurance policy, although your coverage would now be individual and not family. You would need to pay the employer’s cost for that individual policy. 

It is not uncommon for an occupy home spouse or a spouse who has less income or employment options to get COBRA coverage and to barter that their spouse pay for that coverage for a specified period after the divorce. In doing so, this provides the spouse who did not have coverage available a while to either obtain employment with coverage or become financially settled and ready to afford their own coverage.