Details matter during a divorce in New Jersey. Unfortunately, as couples deal with the emotional fallout of their failed marriage, secondary considerations may fall by the wayside. The issue of insurance – health, life, auto, and disability – can easily be overlooked, but nonetheless must be addressed according to Somerset divorce lawyers.
Unless both spouses maintained their own, separate health insurance policies while married, a divorce decree will often require that a dependent spouse be dropped from their ex-spouse’s health insurance plan. The dependent spouse can remain on the plan for up to 36 months by purchasing coverage directly under the Consolidated Omnibus Budget Reconciliation Act (COBRA), however. If a dependent spouse opts to self-insure or join an employer-sponsored plan, the expense may come as a shock. The cost of health insurance, either individually or for dependent children, can often be incorporated into the terms of a spousal support order.
In some circumstances, a supporting spouse can be ordered to purchase a life insurance policy which names the supported spouse as beneficiary. The maneuver is intended to insulate the supported spouse. In the event that a supporting spouse dies, alimony and child support payments end immediately. Life insurance coverage will not be required when a divorce contains no ongoing support obligation.
Similarly, disability insurance provides coverage in the event that a spouse becomes disabled and is unable to work. A supporting spouse who will be largely responsible for the finances of a former spouse and any shared children should strongly consider purchasing disability insurance.
When a family home is to remain in the hands of one spouse, the homeowner’s insurance policy must be changed to reflect the change in ownership. Spouses who will reside in a rental property should purchase rental insurance. Additionally, when both spouses drive they will need to seek out separate automobile insurance. Families with teenaged drivers may need to be insured by both parents’ policies.
Couples will rarely complete a divorce with their preexisting insurance coverage intact. By being proactive and diligent, however, couples can successfully re-work their policies to reflect their new family dynamic. Somerset divorce lawyers at the Law Offices of Kisha M. Hebbon draft divorce agreements that address all potential issues which face our divorcing clients. Contact us online or call 732-873-6464 to schedule an appointment at our Somerset, New Jersey office, and we represent clients throughout New Jersey including Somerset County, Middlesex County, Union County and including but not limited to the towns of Somerset, Franklin, Bridgewater, New Brunswick, East Brunswick, Plainfield, Edison, Metuchen, Woodbridge, Piscataway, Old Bridge, Rahway, Linden, Elizabeth, Cranford, Summit, Union, Clark, Elizabeth, Berkeley Heights, and Scotch Plains.