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Splitting Benefits after Divorce

Tips to help your coverage stand on its own

You're living apart from your spouse. It's a chllenge. But it's the right time to make sure your health and financial benefits can also stand on their own.

Avoid lapse in health coverage

All too often, someone ends up losing their health planhealth plan
A health plan that you buy or that is provided by your employer. It pays for health care services. I... more in a divorce. But you can’t afford to leave your health or finances unprotected, can you? Without health benefits, an accident or hospital bill can cost you thousands.

You may choose to stay on your ex-spouse’s plan. Or you can look for other options. Whatever you decide, just make sure that you’re covered — quickly, and without interruption.

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5 ways to keep up health coverage

1. Get a health planhealth plan
A health plan that you buy or that is provided by your employer. It pays for health care services. I... more through your employer: Take a second look at your health planhealth plan
A health plan that you buy or that is provided by your employer. It pays for health care services. I... more at work. Can you afford the premiumspremiums
The amount charged by a health insurer for a health insurance policy. If you have a health plan thro... more? Will the services meet your and your children’s needs? Does it cover your prescriptions? It usually costs more to go it alone, but this may be one of your best options.

2. Keep up your coverage with COBRA: This federal law protects you from losing your health planhealth plan
A health plan that you buy or that is provided by your employer. It pays for health care services. I... more during a big life change like divorce. The good? You may be able to continue your coverage for up to three years. The bad? The costs can be very high since you are paying the full cost of premiumspremiums
The amount charged by a health insurer for a health insurance policy. If you have a health plan thro... more. If you re-marry or get another plan, the coverage ends.

3. Ask for health benefits as part of your settlement: If you have kids, talk to your lawyer to see if your spouse can keep you on their health planhealth plan
A health plan that you buy or that is provided by your employer. It pays for health care services. I... more too. It may not always work — especially if you can get a health planhealth plan
A health plan that you buy or that is provided by your employer. It pays for health care services. I... more on your own. But trying never hurts.

4. Buy an individual health planhealth plan
A health plan that you buy or that is provided by your employer. It pays for health care services. I... more: This could end up being your only option. But it could be the best one. Forget what you’ve heard about individual plans being high in price and low in features. True, your rates will most likely be based on your age and medical history. But unlike a group plan, you can add or remove features to reach a price that works for you. For instance, if your family is typically healthy, you can pick a plan with a higher deductibledeductible
A set amount that you must pay for your medical services before the health plan starts to pay.... more so you pay less in monthly premiumspremiums
The amount charged by a health insurer for a health insurance policy. If you have a health plan thro... more. And most plans have perks like gym discounts, low or no cost preventive carepreventive care
Programs or services that can help maintain good health (such as annual physical exams or immunizati... more and more. Browse individual plans here.  

5. Try government aid: Divorce can cost a lot, and so can a health planhealth plan
A health plan that you buy or that is provided by your employer. It pays for health care services. I... more. If your budget can’t stretch any more, you could apply for MedicaidMedicaid
A State government program that provides health care insurance for low income people, including fami... more. It’s a program that helps kids and pregnant women get their health covered. Find out more at the Centers for Medicare & Medicaid Services.

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Your child's health coverage

Two separate lives often mean two separate health plans. But why pay twice to cover your child? If your split is on good terms, you can choose the best plan for the child. Then work out the costs between yourselves.

 

Here’s another option: Many divorced parents list their kids as dependents on both plans. But one plan is “primary,” and pays the costs of the claims first. The other is “secondary,” and pays what the first plan doesn’t cover. If you go this way, here’s the rule: primary coverage goes through the spouse with the earliest birthday. And if you have two plans — group and individual — the group plan will pay claims first.

 

If you prefer, you can deal directly with the health planhealth plan
A health plan that you buy or that is provided by your employer. It pays for health care services. I... more instead of your spouse. Ask your plan about a qualified medical child support order. You can find out more about it right here.

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Child support considerations

When it’s time to pay child support, it’s also time to review other assets besides health insurance.

• Make sure your life insurance plan can cover any costs ordered by the court. If you are the primary caregiver, remind your ex-spouse not to change beneficiaries or drop the policy without notice.
• Make sure your disabilitydisability
  A physical or mental impairment that substantially limits one or more of the major life activities o... more plan can keep up with your payments if you get hurt or can’t work. If you take care of the child most of the time and work, you should also review your plan.

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Your homeowner's policy

Things happen – fire, flood, theft — so take time to protect what you have. Are you a “named insured” on your homeowner’s policy? If not, your prized possessions probably won’t be covered once you divorce. Maybe you’re planning to move out of the house before the divorce. Just check your policy first. Most only cover 10% of the value of your items, even if you are named on the policy.

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Plan ahead checklist

No one likes to plan for unhappy endings. But to protect your health and finances, it’s a critical step. Ask yourself some questions:

• Do you understand your policies? The limitations? The rules?
• Is your life insurance up to date?
• How much debt do you have?
• If you each have a health planhealth plan
  A health plan that you buy or that is provided by your employer. It pays for health care services. I... more, does yours have enough substance to stand on its own?
• Have you read the fine print on all your policies?

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