The Law Office of Sam Byrd is open and fully operational. For safety, we use phone and video conferencing for most appointments. However, some exceptions are made for in-person meetings when necessary. Courts and Clerks remain open for all business except in-person hearings unless it meets an emergency exception. We can complete 95% of our work under the current scenario! Click here to read more.
Law Office of Sam Byrd Focusing on Criminal and Family Law
Call to Schedule a consultation
423-954-7949 800-724-5435

Divorce changes insurance coverage

Ending a marriage can lead to disputes over issues such as property division and spousal support. But many routine but important financial matters may be overlooked after the divorce is finalized. Health and life insurance coverage and needs, for example, may change.

Usually, one spouse receive health insurance coverage under the other higher-earner spouse's insurance plan with their employer. Since 1986, federal COBRA insurance coverage was available to assist non-income-earning spouses. COBRA allows them to continue health coverage under their former spouse's employer plan for up to three years. COBRA, however, is expensive for the spouse who pays the premiums. These are typically the employee and employer's share and an additional 2 percent. It is also a comparatively short-term solution.

Other affordable health care options are available since the passage of the Affordable Care Act in 2010. These may provide more choices for people without access to their own employer-sponsored health insurance or if they have pre-existing conditions.

Life insurance is also important, especially for a spouse expecting to receive alimony. Spousal support usually terminates when the payor dies. One remedy is for the spouse receiving this support to inherit other replacement assets. More typically, a life insurance covering the payor spouse can help assure that payments continue. Life insurance may be part of the divorce settlement. When this occurs, it is usually advisable for the recipient spouse to own the policy and pay premiums to assure control over the policy, that no changes are made and that there are no payment lapses.

Life insurance should also be finalized before the divorce is finalized. Appropriate modifications may be made if the payor spouse is uninsurable. An attorney can help a spouse prepare for these issues and others when undergoing a divorce. Their assistance may help assure that a settlement is fair and reasonable.

No Comments

Leave a comment
Comment Information
| Email Us For A Response

Get the help you need

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Contact The Law Office of Sam Byrd

Law Office of Sam Byrd
3828 Dayton Blvd
Chattanooga, TN 37415

Phone: 423-954-7949
Toll free: 800-724-5435
Chattanooga Law Office Map

NCDD National College for DUI Defense: Samuel A Byrd