When California couples finalize a divorce, they may still have a number of financial issues to disentangle. Even after the divorce decree has been issued, there will be joint accounts to close or transfer, mortgages to refinance, or insurance policies to change. Indeed, insurance can be one of the most important aspects of post-divorce planning for both parties. The two types of insurance most common in a divorce are health and life insurance.
Many people receive their health insurance coverage through their spouse's employer. After a divorce, they will no longer be eligible for coverage and will need to seek a new policy. The employee will need to notify the insurer after the divorce is finalized, and the insurance company will remove the other spouse. The other party will need to seek new insurance, either through his or her own employer or through one of the marketplaces. Under the Affordable Care Act, divorce is a qualifying life event that allows people to enroll in health insurance at any time of the year.
Life insurance, on the other hand, can be dealt with in a number of ways during and after a divorce. When alimony is part of the divorce settlement, the parties may also mandate a life insurance policy for the payer that will cover outstanding obligations in case of an unexpected death. For others, they may wish to act quickly to remove a former spouse as a beneficiary after the divorce to avoid an unexpected outcome.
The financial consequences of a divorce can linger on long after other issues have been sorted out. A family law attorney can strive for a fair outcome in terms of property division, alimony, and other key matters.