Divorce impacts almost all areas of each party’s life from living arrangements to retirement benefits and more—including your insurance needs. During or immediately following the divorce, you should review and evaluate your insurance coverage.
Home or Renter’s Insurance
Whether you are renting a new residence or have moved to a new home that you purchased, your relocation—even if within the local area—should trigger an assessment of your renter’s insurance and/or homeowner’s insurance policy. If your living circumstances change, you will want to ensure coverage at your new residence and may also want to evaluate your policy limits in light of your new circumstances. With a new home, you will also want to review your personal property coverage to be consistent with the items which remain in your possession. You may want to consider additional coverage through an insurance rider on any items of particular value.
If you are the owner of and are retaining an existing life insurance policy, following a significant life event such as a divorce, you should take the time to review your life insurance beneficiaries and policy amounts. Your beneficiary designations should be made consistent with the terms of any agreements or court orders in your divorce matter. In the absence of an agreement or court order addressing life insurance, you will want to assess if the beneficiaries are consistent with your new family circumstance. If you do not have an existing life insurance policy, you will want to assess whether your changed circumstances warrant securing a policy. It is likely the case that a policy will be less expensive the younger and healthier that you are.
It is often the case that married persons combine insurance coverage whether for an automobile or other item. With a separation or divorce, you are like to need to shift to a single automobile insurance policy if you plan to own or drive a vehicle. It may be important to plan financially for the loss of a multi-vehicle discount if you are transitioning to a policy covering only one vehicle. Bundling multiple insurance policies such as automobile and home owner’s insurance may provide some cost savings.
If you have been covered by a former spouse’s insurance policy, the divorce will likely trigger a termination of coverage. If you are being removed from a former spouse’s insurance policy, you will want to evaluate your options for continuation coverage, coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA), and individual policies whether through your own employer or through a health insurance exchange. In the case of divorce, you will have the opportunity to move plans outside of the traditional open enrollment periods. If you have been providing health insurance coverage for a former spouse prior to the divorce, you will want to evaluate whether your current insurance coverage is consistent with the terms of any agreement or court-order.
Contact the Divorce Lawyers at Andalman & Flynn in Maryland
We know that going through a divorce can be overwhelming, but every ending is a new beginning. If you need help with any aspect of the separation or divorce process, the divorce and family law attorneys at Andalman & Flynn are here to help. If you need assistance resolving your divorce in court or through alternative means of resolution, we can help. Don’t hesitate to contact us today.
You may also be interested in…
- Does My Child Have a Say in a Custody Dispute?
- Why You Shouldn’t Date During a Divorce
- Life after Divorce: Getting Back into the Work Force
- What Is the Dissipation of Marital Property in Maryland?