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Tennessee Property Division: Insurance and DivorceWhen someone in Rutherford County is going through a divorce there are many things to think about such as finding a new home, separating physical property, hashing out the details for child support, and negotiating the terms of child custody. One thing that a person should pay particular attention to in their divorce proceedings is insurance.
Health insuranceHealth insurance is one thing that a person should not be without, but it is also one of the most expensive protections to carry. If a person has been receiving insurance through their spouse, they should be aware that they will need to find their own health insurance. According to Reuters, the U.S. Affordable Care Act will provide some options for people who are in need of affordable insurance but that will not be available until 2014. A spouse can put themselves on COBRA for about 36 months but they should be prepared for higher costs.
If a person is the holder of the policy, it is important for them to notify the insurance company of the divorce. Failing to do so could result in a complete cancellation of the policy and other penalties. A spouse receiving financial support should try to make sure that their health insurance needs are included in their payment negotiations, if possible.
Homeowner’s insuranceWhen a couple is in the middle of a divorce, generally one spouse has moved out of the house but this does not mean they are no longer obligated to pay for the home insurance. If the spouse’s name is on the deed of the home, then they are still connected to the home legally until the property division is completed and the divorce is finalized. Until that moment, they should make sure that there is an active insurance policy in place according to Fox Business.
Once the divorce is finalized then the spouse who gave up the home should immediately contact their insurance company to alert them that they are no longer an owner. Often home insurance is connected to auto insurance and the person can make the change on both policies at the same time.
Life insuranceLife insurance can offer an ex-spouse financial security to take care of child support or spousal support obligations if the other spouse dies in an accident or from a medical condition. Because the policy often belongs to the person who is supporting the other spouse and children, the receiving spouse may want to negotiate the policy in their divorce settlement and keep the policy under their name to make sure that the beneficiary is not changed to a new spouse or different family member.
Spouses with life insurance policies should be sure to remove their ex’s name from the policy as a beneficiary if it is not included in the divorce settlement. Because insurance policies are complicated, it would be wise for a person to seek the assistance of an experienced attorney in their area.