Some divorcing couples in Minnesota have to-do lists that include such things as sorting out marital assets and handling any custody issues that may be part of the divorce process. During this stressful time, it’s easy to overlook other matters, such as insurance coverage for the family. However, it’s still important for separating spouses to be aware of how a change in marital status can affect insurance arrangements.
The insurance issues that often come into play during the end of a marriage usually involve health and life insurance. With health insurance, it’s common for one spouse, usually the higher-earning one, to be covered by the other’s plan they have through work. In order to make things easier post-divorce, the Consolidated Omnibus Budget Reconciliation Act (COBRA) allows an individual to remain covered under their ex’s plan for up to three years. The potential drawback for a lower-earning spouse without their own employer option is having to pay additional administrative fees, although Affordable Care Act plans may be more budget-friendly.