Divorce And Health Insurance
Health insurance is not, perhaps, one of the most exciting topics of thought at the best of times. If you are suffering under the stress and confusion associated with a divorce then you are more thank likely going to want to just sweep it under the carpet and forget all about it.
Big mistake.
If you or your spouse are lucky enough to work in a job where your employer provides health insurance, then divorce can really make this side of things difficult. If, for example, the husband in a couple works at a high-paying job and gets the family’s health insurance paid by the employer, what happens if the couple divorce? Does the husband trot off into the distance with the health insurance, leaving the wife uncovered? Does the wife take it? Should they split it? How does that work? Of course if, as consequence of the divorce, the husband is no longer a part of the family, then the health insurance will not likely cover the other members of this unit.
Separation Agreement
If indivisible benefits like health insurance prove to be too much of a barrier to splitting up, then the husband and wife can enter into a separation agreement which postpones the final decision to divorce. This might not work for every couple, but it might also provide an invaluable middle-ground that allows all parties to get accustomed to the split. In addition, the family is still a family so still enjoys the benefits of health insurance.
A separation agreement might be a great idea whether you are struggling with the costs of splitting health insurance or not.
Separation Agreement And Taxes?
Separating in a formal sense might work well for health insurance benefits, but it might have knock-on effects on, for example, taxes. It is important that everyone’s friend the divorce attorney is drafted in to advise on the matter.
If the relationship is in a state that allows an amicable settlement like this in order to preserve the general good, then there is a excellent chance that some agreements can be reached.
CORBA Health Insurance Coverage
CORBA is a federal law which allows someone who is covered under a health insurance policy to continue that policy. The continuation of that policy will be at the cost of the person (or people) who benefit from it, but means that the families who lose the health insurance benefits afforded to an absent spouse are not simply dumped.
In certain circumstances the CORBA law means that the employer who previously covered the entire family will be obliged to cover the divorce husband and wife separately, at least for a limited period. The most likely situation would require that the extra cover provided by the employer eventually be covered the party that benefits.
CORBA may be a way to split the health insurance neatly, with the cost of the coverage for a limited time becoming part of the settlement.
As always it is difficult to figure out you exact entitlements, requirements or obligations without turning to a professional. Once again the divorce attorney will be the one to tell you everything that you need to know.