Many divorcing spouses find it challenging to cope with their divorce. Property division and child custody issues are top on the list of factors that divorcing husbands and wives struggle with the most.
Most spouses don’t stop to think, however, about some of the finer details of their split or other ways in which their divorce may impact them. One big thing you should know is that your divorce may affect your health insurance coverage.
What happens with health insurance following a divorce?
Each jurisdiction has different laws that dictate how employers should handle health insurance coverage following a worker’s divorce. In some jurisdictions, employers must keep a former spouse on an employee’s health insurance plan indefinitely. In others, they only have to do so for a defined period after their divorce’s finalization.
Federal legislation that entitles divorcing spouse to health insurance
The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that allows a husband or wife to remain on their former spouse’s health insurance plan for up to 36 months following their divorce’s finalization. Monthly premium payments may be high under this program. You may find it less expensive to procure insurance under the Affordable Care Act, instead.
Negotiating a settlement in your divorce
It can be challenging to go from sharing your household expenses and health insurance costs with your spouse to suddenly footing the bill for them all by yourself.
You and your attorney may be able to negotiate a settlement with your ex that allows you to receive additional assets to aid you in making a seamless transition into becoming financially independent. You may be able to liquidate those assets or use any funds you receive to cover your newfound health insurance costs.