When facing divorce, whether in Georgia or any other state, taking care of insurance policy issues is a subject that certainly needs to be addressed. There are several different types of insurance that the parties may have purchased during the marriage, and a divorce may have some impact on the coverages and premiums of each of the policies. Each policy should be carefully reviewed during the divorce negotiations.
Probably the most important type of policy would be the life insurance. Consideration needs to be given as to which spouse is the policy owner and which is the beneficiary. While any children in the marriage should definitely be taken care of by the life insurance policy, a former spouse may need to be reconsidered as a beneficiary. This is especially the case if a new spouse has entered the picture. The cash value of any whole life policies are taken into consideration when dividing property, as well.
Health insurance policies need to be assessed, especially if children are involved. With most couples, health insurance is obtained through the employer of one spouse. Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the spouse who does not have coverage can maintain coverage under their previous policy for a short amount of time. That spouse will have to pay the required premium and it may turn out to be cheaper to find other coverage.
Car and home insurance will need to be changed. Premiums may increase if there are bundled policies or other types of discounts. Long-term care insurance and disability insurance are two other types of insurance some divorcing couples may not think about. These types of insurance may not have been needed as a married couple but as each spouse becomes single and has only his or her income on which to rely, outside care may be an eventual possibility. Georgia couples facing the stress of divorce have avenues of assistance when dealing with insurance concerns.
Source: Fox Business, “How to Uncouple Your Insurance in Divorce,” Michele Lerner, May 31, 2013