When Alabama couples decide to divorce, they may have to deal with a wide range of emotional, practical and financial consequences. With all of the transitions that accompany divorce, exes may think little about the insurance changes. In fact, it can be easy to miss the divorce-related ramifications to insurance policies.
The two types of policies most frequently affected by divorce are life insurance and health insurance. In terms of life insurance, some spouses may need to open a new policy. When spousal support is part of the divorce settlement, the paying spouse may be required to obtain a new life insurance policy. This would cover the support payments in case of the untimely death of the paying spouse.
In some cases, an ex might wish to act quickly to remove their former spouse from their beneficiary information. If they neglect to complete this change, their intended beneficiaries could be slighted one day in the future.
Health insurance can also change after divorce, especially when one spouse is included as part of the other spouse’s employer policy. The worker spouse will need to submit a change for the policy after the divorce is finalized, and the other spouse will need to obtain new health coverage. Divorce is a qualifying life event that allows an individual to sign up for a policy on the marketplace or at their employer at any time of year.
Insurance changes are only one part of the financial differences that can come with divorce. A family law attorney can provide guidance and representation to a divorcing spouse regarding property division, spousal support and other key divorce legal issues.