Experts: Pay attention to insurance during divorce proceedings

During the tumultuous divorce process, it’s highly likely that your attention will be focused almost exclusively on those issues that are the most important to you, including your children, your home and/or your retirement accounts to name only a few. While this is certainly understandable, it’s also important to remember to pay attention to other issues that may not seem as critical at first glance, but will rapidly become so in your new post-divorce world.

For example, experts point out that many people fail to address issues concerning health insurance, homeowners’ insurance, car insurance and even life insurance during a divorce. This failure, in turn, can prove costly further down the road and create unanticipated difficulties.

Accordingly, financial experts urge divorcing spouses to be proactive about managing their insurance coverage.

Consider the topic of health insurance, as a divorce could conceivably end up costing you the coverage that you have long relied on your former spouse’s employer to provide. Here, you will need to make the necessary arrangements, whether through your own employer, COBRA (for up to 36 months) or even an individual policy.

If you have children, you will also need to plan for which health insurance will provide them with the necessary coverage.

Experts also indicate that if you will be in entirely new surroundings after the divorce, you will likely need to take care to secure both homeowners’ insurance and car insurance. However, they also point out that you should be prepared for a slight bump in insurance premiums as you are likely no longer eligible for multi-car discounts and other price reductions enjoyed by married couples.

Fortunately, experienced legal professionals can provide the guidance you need concerning insurance and other important yet less obvious matters during the divorce process.

Source: Fox Business, “How to uncouple your insurance in divorce,” Michele Lerner, May 31, 2013