Featured News 2014 Why Insurance Matters During a Divorce

Why Insurance Matters During a Divorce

Staying Covered Is Important At This Time

When making the decision to divorce a spouse, there are many different forms of property and assets that must be divided between the couple. They may not need to decide how to determine child custody and visitation, but also how the family house and possessions will be divided. Something that many couples overlook, but is still extremely important, is determining how to manage joint insurance policies once they divorce.

There are five main types of insurance that must be considered in a divorce:

  1. Health insurance. Sometimes one spouse relies on the health insurance benefits of the other, and a divorce will require that each spouse get on their own insurance plan. It may also be important to determine what will happen with the health insurance of children and how this cost will be calculated.
  2. Life insurance. While life insurance may be overlooked in a divorce, changing beneficiaries on a life insurance policy is important. If this is not changed, then it may be possible for a former spouse to have access to the proceeds of the life insurance policy depending on state laws.
  3. Vehicle insurance. If you live in a state where you must have vehicle insurance, you may want to make sure these arrangements are taken care of before a divorce. Leaving yourself without automobile insurance may leave you open to serious consequences if you were to get pulled over or involved in an accident.
  4. Homeowner insurance. Changing homeowner insurance should be done when the decision is made as to which spouse will keep the family home. A divorce settlement should lay out which spouse will be responsible for paying homeowners insurance following the divorce.
  5. Disability insurance. If you currently rely on disability insurance to pay your bills, then a divorce settlement should address this. It is important that you resolve this quickly, as you and your children may need this income on a month to month basis now.

If you are considering divorce, do not let insurance fall by the wayside. Insurance is an important financial consideration that should be discussed with an attorney.

Check out the directory of family law attorneys to find an experienced lawyer in your area to help divide property and insurance when divorcing.

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