Utah residents who are ending their marriages are often told that their financial lives will be changed forever, but they might not realize exactly what that means. One of the areas that some people might neglect to consider during the divorce process is insurance. This includes life, health and car insurance, among others.
While many Utah couples focus on the division of their marital estate, they might neglect to pay close attention to how the divorce will affect their insurance. For instance, many people take advantage of health insurance coverage offered by their spouse’s employer. What they might not realize is that they will most likely no longer be eligible to use it after the divorce.
Therefore, it will be necessary to arrange for health care coverage. This should be done during the divorce since it might be possible to have the other party pay the premiums. It would be easier to work out this issue during settlement negotiations instead of attempting to go back later. The same could be said for other types of insurance.
Any life insurance policies will also need to be reviewed since a soon-to-be ex-spouse might be listed as the beneficiary of the policy. In some cases, it might be agreed that the ex-spouse remain the beneficiary in order to replace child support or alimony payments in the event that the paying spouse dies before such payments would end. Otherwise, it would be a good idea to remove the other party from the policy and appoint a new beneficiary.
These are just two of the insurance considerations that need to be dealt with during the divorce. If the parties are negotiating their own settlement agreement outside of the courtroom, any arrangement the parties come to will most likely be approved by the court as long as it does not provide one party with an unfair advantage. Before coming to any agreement, it would be beneficial to understand all of the options available to each party in order to reach a satisfactory solution.
Source: Forbes, “5 Crucial Insurance Changes After Divorce“, Barbara Marquand, May 25, 2016