During the process of ending a marriage, a person is facing many complex financial and legal issues that will affect his or her future for years to come. Divorce is overwhelming, and it's easy to become overly focused on things such as property division and spousal support. While these are important matters, it is also prudent to consider insurance coverage and whether a divorce will change the protection a Texas reader has.
One important consideration is what will happen to a person's life insurance coverage. This type of insurance coverage can have an important role in a non-earner's future, especially if a former spouse passes away or is otherwise unable to make support payments. Like when dealing with other important assets, it may be possible to negotiate a fair agreement regarding a life insurance policy.
Spouses often share a health insurance policy under one of their Texas employers. Joint plans typically make more financial sense, and a divorce may make it complicated for one or both parties to find new coverage that is affordable. While it may make sense to have separate insurance accounts, The Consolidated Omnibus Budget Reconciliation Act gives the non-earning spouse up to three years to remain on the same plan with his or her ex-spouse.
The terms of a final divorce order will have implications for a person's life for years to come. It is prudent to negotiate and discuss an agreement with a strong future in mind. In the midst of this process, it is smart to consider changes to insurance coverage and how to protect future interests.