Divorce and Finance - Health Insurance Challenges
Almost every client in the midst of a divorce has to contend with financial strain, along with emotional turmoil. A common concern my clients have relates to their health insurance coverage, and what will happen to their health insurance after the divorce is final.
In most contested divorces, the court will impose a mutual temporary restraining order (TRO) that prohibits the parties from canceling one another's insurance policies, whether those policies are auto, home or health care. Additionally, before terminating a policy beneficiary, most employee benefits managers will want specific information before making a change.
If your spouse has always covered you under his/her employer's health insurance plan, you have a right to continuation coverage through COBRA. While COBRA coverage may be expensive, the premium is often better than what an individual health insurance policy will cost. The non-employee spouse must contact the employee benefits administrator to obtain information such as enrollment information, required forms, and premium payment information.
