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Health, life insurance impacted by divorce

On Behalf of | Jun 21, 2019 | Divorce

The end of a marriage is never an easy experience from a practical, financial or emotional standpoint. This is why many people going through divorce in New Jersey and elsewhere often overlook basic matters like medical insurance and life insurance. However, it is imperative to consider how such insurance plans will change following a divorce proceeding, as well as to prepare for these changes accordingly.

When it comes to medical insurance, individuals who were on their spouses’ employer plans before getting divorced can fortunately stay on these plans even after the divorce, for up to three years. This is possible thanks to legislation known as COBRA. The problem with this coverage is that it is often prohibitively expensive. The good news is that more health insurance coverage options can now be accessed due to the Affordable Care Act, which became effective at the end of 2017.

Taking out life insurance on an ex-spouse is a smart move as well for those receiving spousal maintenance. The reality is that alimony payments will end when the payers die. But life insurance plan payouts can help to replace these payments.

Getting divorced can no doubt be a frustrating and confusing process. However, a divorce attorney in New Jersey can provide clients with the direction needed to make wise decisions regarding divorce matters like spousal maintenance and property division. The aim of the attorney is to make sure that his or her client achieves the most personally favorable outcome possible considering the circumstances of the divorce.