Soon-to-be ex-spouses who are getting divorced in New Jersey may need to consider purchasing both life and health insurance. Life insurance could be especially useful if one ex is ordered to pay spousal support to the other.
Some couples also include a requirement to purchase life insurance in their divorce settlements. Otherwise, support could be abruptly cut off for the recipient spouse if the alimony-paying spouse dies. With a life insurance policy, the surviving spouse might still have access to some means of support. It may be best for the recipient spouse to hold the policy and make the premium payments to ensure that the policy does not lapse. Furthermore, the policy should be put into place before the divorce is final. If the spouse is uninsurable, the couple can then modify the divorce agreement.
A person who is covered on a spouse’s health insurance may need to seek a new plan. While COBRA allows an extension of an employer-based plan for several years, this may be a costly option. The Affordable Care Act has made insurance more accessible to some, particularly people with pre-existing conditions. Soon-to-be exes should shop around and consider their options.
The process of dividing property can be complex in a high-asset divorce. Businesses or valuable collections may need to be appraised and sold. As former partners split assets, they may need to refinance or retitle some of them. Generally, closing a joint account must be done by both individuals. An attorney could help a divorcing client throughout the separation process.