For hundreds of soon-to-be divorced couples across Illinois, and the nation, there are literally thousands of things to think about. Who gets the house, who will get the kids, and how to split the bills are among a few; but by the end of the long question monologue, some couples forget about how to split up insurance plans.
In a recent article from Reuters News, experts are saying that failing to make changes in your insurance policies could cause you to be either over-insured, under-insured, or not covered at all.
The first thing to think about, says one divorce lawyer, is what to do about health insurance. According to her, not dropping your spouse from your insurance plan after a divorce could end up in your insurance company dropping your ex-spouse for insurance fraud.
Another thing to think about is life insurance. Often times, life insurance policies are owned by the primary "breadwinner," with the spouse attached to the policy. Though dropping your spouse may mean lower payments, it may be advantageous to keep your spouse on the policy, possibly considering it as a part of alimony payments.
Auto insurance is another often over looked part of divorce. Splitting policies may mean that your individual rates drop. If that's not the case and you have trouble paying for your insurance because of your reduced income, it is advised to get the money as part of an alimony package.
Speaking with an experienced divorce attorney may be able to help couples, who have gone from "I do" to "I don't," settle many of the issues associated with splitting up insurance coverage.
Source: Reuters, "How to untangle your insurance plans in divorce," Geoff Williams, Sept. 11, 2012