You Must Know the Benefits of divorce and health insurance.

Benefits of divorce and health insurance - Divorce causes serious problems with health insurance benefits. Many families have employer-provided health insurance benefits and/or payments that cover all families. 

It is not uncommon for another spouse to be the parent of the household and absolutely not have access to health insurance benefits, or in a job where health insurance benefits are either not available or provided with large costs. After divorce, the spouse and family health insurance can no longer cover the other parent. 

They are no longer “family” members who can take advantage of the same health insurance policy. How then to ensure that all remain insured becomes an issue for negotiation and/or divorce litigation.

If both parties do not have affordable health insurance benefits, and if the cost of getting these health insurance benefits for the other party after divorce becomes prohibitive, there is a way to continue receiving benefits at no additional cost. 

You Must Know the Benefits of divorce and health insurance.
You Must Know the Benefits of divorce and health insurance.

This method is to sign a separation agreement, but delay the divorce. So the parties actually stay married and they can stay on the same health plan even if separated. The parties may agree to wait for one, two, or more years before either party files for divorce. While the parties will remain married, their property, custody, and support issues will be resolved in their separation agreement. In some cases, this is the optimal resolution. 

For example, what if both parties want one spouse to stay at home for a few more years with young children, but they still want to separate and divorce? This option suits them. They can separate, agree to a divorce and any terms they have to agree to but delay the final divorce so they can maintain cost-effective health insurance benefits.

In the example above, there may be some difficulties that need to be discussed in detail with your divorce lawyer. For example, if you are separated but not divorced, this can affect your federal income tax filing status. 

In addition, in some states, it is not as easy as in other states to implement a separation agreement. Or, in another country, one of the spouses can take advantage of the agreement for a year or two, then go to court and seek a completely different form of financial aid divorce. Only a divorce lawyer who is licensed to practice in your country can advise you on this issue.

Another option for couples for divorce is COBRA insurance. COBRA is a federal law that requires people who are covered by a health insurance policy to have the right to continue this coverage at their own expense for a period of time if there are certain requirements. 

For example, if you are divorced and your spouse got family health insurance through his or her employer, the employer should provide a COBRA signal to you after the divorce. This COBRA coverage requires you to have the same health insurance policy, although your current coverage will be individual rather than family coverage. You will be required to pay employer fees for these individual policies.

It is not uncommon for a stay-at-home spouse, or a spouse with the fewest income or employment options, to receive COBRA coverage and arrange for their spouse to pay for that coverage for a certain period of time after divorce. 

In doing so, it gives the spouse who does not have insurance coverage some time to either get a job with insurance coverage or become financially established and be able to afford their own insurance.

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