Separation and divorce ultimately affect all aspects of your personal life and finances. One of the most commonly overlooked aspects of divorce-related changes is insurance. Medical insurance, life insurance, and other types of insurance policies are often a legal necessity that becomes difficult to afford or qualify for once your divorce is finalized. Being aware of possible post-divorce insurance changes that can seriously impact your life gives you an opportunity to limit negative repercussions.
Get New Car Insurance
Immediately after you and your spouse have decided how to divide your motor vehicles, separate car insurance policies must be purchased. Once you are no longer married, each adult may lose certain discounts that were offered to your household because you were married or had a policy with multiple vehicles on it. Failing to update your vehicle insurance on your own could lead to trouble if your insurance company finds out about your divorce from your ex-spouse. If your former spouse notifies your current insurance company of the marital status change, the insurance company may update your policy without telling you, creating a situation in which an unexpectedly high car insurance bill is received when you least expect it.
Update Homeowners Insurance
A home insurance policy provides a homeowner with financial protection in the event that his or her property is damaged or destroyed. The insurance policy should be in the name of the homeowner, meaning that after a divorce, if one spouse surrenders his or her legal right to the marital property, the spouse who is given possession of the home must make sure the insurance policy is in his or her name alone. If both spouses remain on the deed but one spouse moves out as part of the divorce settlement, it is possible to list the other spouse as an additional insured party.
Life and Disability Insurance
Today’s adults have a higher chance of becoming disabled or dying before reaching retirement age. If you have children for whom you want to provide, or you depend on support payments for their care, maintaining life and disability insurance is important. Prior to getting a divorce, you and your spouse should discuss coverage requirements that ensure financial support will continue if the primary income provider becomes permanently disabled or passes away while his or her children are still minors. After the divorce is finalized, it is in your best interest to check periodically to make sure your former spouse is maintaining policy coverage as instructed.
Getting Professional Advice
Insurance is complicated during the best of times and a divorce can make all things related to insurance very complicated. A divorce attorney who is familiar with all aspects of the process can help you ensure that you and your children have the insurance coverages necessary to continue after an emergency or tragedy. Vayman & Teitelbaum has a team of attorneys who are ready to discuss your unique situation, go over your options, and help you make the best choices based on your unique circumstances. Contact one of our conveniently located Atlanta metro area offices today to schedule a consultation.