There are many economic considerations to be made when an Ohio couple decides to get a divorce. Dissolution of marriage typically confronts questions of asset division and support payments. It can also bring up issues that the parties may have not considered, however, like insurance coverage.
When a marriage ends, insurance is sometimes one of the areas that couples forget to consider. If a divorced person fails to change beneficiaries on policies such as life insurance, the ex-spouse is likely to receive the benefit of an insurance payout at the time of death. This can be true despite the marital status of either of the ex-spouses at the time of death. When children are involved, it is not uncommon for spouses to continue to maintain life insurance for the benefit of the other after a dissolution of marriage. Creating a trust is another option to ensure children collect the payout.
Other insurance questions can also arise during a divorce. Though there are plans for continuing existing coverage, such as the federal COBRA program, these can be a large expense for newly divorced parties. In many cases, the cost of medical coverage can be negotiated as a part of a settlement agreement.
Additionally, a consideration in today’s housing market is the family home. When an Ohio couple has a home that is not worth what is owed on the mortgage, the sale may be a long and arduous process. The insurance coverage to protect the home must be maintained during the sale.
Insurance coverage is just one of many issues that couples face when confronting dissolution of marriage. Every issue bears investigation to protect the rights of each party. Those confronting these problems would do well to educate themselves concerning all of the relevant facts and circumstances in order to press for an equitable resolution of all outstanding financial matters.
Source: money.msn.com, “5 post-divorce insurance do’s and don’ts,” Barbara Marquand, Feb. 7, 2012