You have made it this far. You have split the debt and the assets, determined a child custody arrangement that works and are ready to sign the divorce decree. Before you put the pen to paper, there is one thing you may not have considered. Have you changed your insurance policies?
While health insurance is generally the most prominent to come to mind, there are several types of insurance you should modify after a divorce.
Auto insurance
If you were on a family policy, it is time to cancel that and begin your own. Once the marital property has been split, whoever ends up with the car is the one who needs to insure it. If you have teen drivers who will drive at both homes, discuss with your attorney and insurance agent the best way to cover them.
Health insurance
Did you rely on your spouse’s employer for health insurance? If so, you have a new problem in getting your own health insurance, as your ex is no longer able to cover you. Check with your employer to determine if you are eligible for health benefits through your job or buy a plan through the health insurance marketplace. If neither of these solutions work, you may also be able to buy a COBRA plan through your former spouse’s employer.
Life insurance
Your divorce agreement may require one spouse to buy a life insurance policy and list the other spouse as the beneficiary, particularly if child support and alimony payments must continue. If you have no ongoing responsibilities to an ex, then it is a good time to review any life insurance policies you have. You will want to remove your ex as the beneficiary of any existing policy.
Divorce is a complex process, and getting out of it unscathed can be difficult if you are doing it on your own. To protect your financial future during a divorce, meet with an attorney before starting the process.
