Most Maryland residents understand that divorce will bring about a great many shifts and changes within their daily lives. In fact, the focus of a well-executed divorce will center on minimizing the negative impact of these alterations, so that a spouse is able to move beyond the relationship with his or her financial stability intact. One area of divorce that receives too little attention involves the insurance needs that accompany this important life event.
The first insurance topic that spouses consider is often health insurance. For those who were covered under the employment benefits of a spouse, that coverage will cease when the marital bonds are dissolved. Having to obtain new coverage can be difficult and costly, and spouses should factor these costs into their overall property division strategy.
Another insurance matter involves an individual’s auto, homeowner’s and property insurance. Many married couples share policies for these needs, which will need to be addressed separately after a divorce. While many may dread having to shop for new insurance, this can be an opportunity to find better coverage for lower rates, especially if multiple insurance needs can be met by one company.
Handling one’s altered insurance requirements is not a very exciting proposition, but it is an area in which considerable financial savings can be had. Maryland residents should think about how their insurance needs will change during the divorce process, so that any financial losses can be accounted for within the asset division phase. Beyond that, sourcing new coverage should be viewed as a chance to gain more value for less cost.
Source: Daily Finance, "22 Tips to Transform Your Financial Life After a Divorce", Robert Pagliarini, July 28, 2014