People going through a divorce need to make sure that they have the insurance coverage that they need moving forward as single people. For those who have children, the proper insurance coverage is essential. Everyone's situation and needs are different, but we're going to discuss the various types of insurance that you need to look at. You may be able to negotiate continuation of some of these policies in your divorce agreement.
-- Health insurance: If you've been covered under your spouse's plan at work, you'll need to look at other options. You can receive temporary coverage under that plan through the Consolidated Omnibus Budget Reconciliation Act (commonly known as COBRA), until you obtain your own coverage. COBRA, however, can be expensive. You may be able to negotiate continued coverage by your ex-spouse in your divorce agreement. You also want to make sure that your children remain covered.
-- Property insurance: Insurance for homes, autos, boats and other property needs to be in the name of the person who actually owns the property. Therefore, if the ownership of any of this property changes in the divorce, you need to make sure that your insurance policies are adjusted accordingly.
-- Disability insurance: This protects at least a portion of your income if you are unable to work. The spouse responsible for spousal and child support should have that. If you are the one who will be receiving that support, you should talk with your attorney about including a requirement in the divorce decree that your ex-spouse maintain a disability insurance policy. If you are going to be on your own, with no children, it's a good idea to consider getting disability insurance in case something happens that prevents you from working.
-- Life insurance: If you have children, this is something that you definitely need to address in the divorce negotiations. Whether you are the custodial or noncustodial parent, you want to make sure that your children are covered if anything happens to you. Life insurance, however, can also protect spousal support payments.
Your Maryland family law attorney can provide guidance on necessary changes or additions to your insurance coverage. He or she can also work to incorporate insurance requirements into your divorce agreement to help make sure that you, your children and your property have the necessary coverage after the divorce.
Source: Ameriprise Financial, "Insurance concerns of divorcing couples," accessed Sep. 01, 2015