Any significant change in your life will affect your finances. This is especially true if you get divorced. Your various insurance policies might appear frivolous at a time like this. However, planning for them as soon as you can will help you avoid financial issues later on. Here’s what you need to know.
Your Life Insurance
Purchasing life insurance coverage and designating an ex-spouse as the beneficiary might be ordered by the court in a divorce decree. In the event that the plan holder passes away, the beneficiary can utilize the payout from child support and spousal support payments.
But it is a good idea to remove your ex from your life insurance coverage plan if you do not have continuing financial responsibilities as part of your divorce degree.
Your Health Insurance
If you already have your very own health insurance plan from your employer, just continue it. However, you can be removed from your ex-spouse’s health insurance policy once your divorce has been finalized, unless there is a court order, postnuptial agreement, or prenuptial agreement that says otherwise.
You can also consider buying one directly from an insurance provider or remain as a dependent on your ex’s policy, but pay for the premiums yourself. You can accomplish this through the Consolidated Omnibus Budget Reconciliation Act (COBRA). You just need to speak to your ex’s insurance company to sign up for COBRA insurance and then let them know about your pending divorce to obtain information on how much you’ll need to cough up for coverage continuance.
Your Disability Insurance
This basically pays out a part of your income in the event that you become disabled due to an illness or injury. Some people forget about this type of insurance, but that would be a huge mistake especially if you find yourself divorced and then disabled. If you are employed, make sure to invest in disability insurance.
In addition, if you will be depending on child support and spousal support payments, your divorce decree must require that your ex have disability insurance coverage. Do not forget to bring this up when you meet with your divorce lawyer in Colorado Springs.
Your Home Insurance
Inform your insurance provider if you or your spouse moves out before the divorce and make sure that the homeowner’s insurance plan is under the homeowner’s name once your divorce has been finalized. You or your spouse should also start looking around for renters insurance. This will provide liability coverage, protection for your possessions, as well as pay for certain expenses like repairs in the event of a natural disaster.
Your Auto Insurance
Once you have divided your vehicles, you will need to take out separate auto insurance plans for them. Make sure to tell your insurance provider about the divorce and have your ex-spouse removed on your auto insurance plans.
Insurance issues are rarely ever easy, but add divorce to the mix, and everything becomes more complicated. So, make sure to contact your insurance provider and divorce lawyer of any changes to avoid potential problems in the future.