How Divorce Affects Your Insurance Policies
When you and your spouse finalize your divorce, one of the common questions that is brought up is what happens to insurance policies that were taken out. While each divorce is unique and an experienced attorney may be able to better answer these questions based on the specifics of your case, here are some general guidelines of what to expect in regards to insurance after your divorce.
After your divorce, you will want to remove your spouse and any cars you no longer have possession of from your policy. This may require you to open a new policy entirely, which could mean you lose some discounts for things such as multiple-car. However, this could prove to be a good time to shop around for new coverage, as this change may actually add significant expense to your monthly premiums.
Once your divorce becomes complete, whichever spouse takes possession of the home should remove the other spouse from the policy as soon as possible, making themselves the sole beneficiary. This likely will not change the price at all unless the policy was a “bundle” with other types of insurance (i.e. your car), which also may have changed as discussed previously. The spouse who moves out may want to consider purchasing some form of a renters’ insurance for their new living situation to protect them against any unforeseen sudden expenses.
If you currently receive health insurance through your employer, this coverage will likely continue, but you will want to remove your ex as a dependent. If you were getting your insurance through your spouse’s plan, you can either sign up through your own employer, purchase your own through the private market, or get an extension through COBRA insurance. This allows you to essentially extend your ex’s insurance for up to an additional 36 months, but you must pay for the policy yourself.
If you have any questions regarding insurance policies or any other aspect of a divorce, the experienced San Diego divorce attorneys from Fair Cadora, APC may be able to help you. Our team of elite professionals have many years of combined experience and earned numerous honors, including being named a Board Certified Family Law Specialist by the California Board of Legal Specialization.
Please call the firm today to schedule a consultation to discuss your options.