How a Maryland Divorce Affects Your Insurance

When you are going through a Maryland divorce, you are likely primarily thinking about the process of property division and who will get what. If you have children, there are obviously concerns regarding custody arrangements as well. One thing people do not often consider in their divorce is what happens after everything is finalized, especially with things like insurance. Divorce can impact a number of insurance-related expenses, including health insurance, life insurance, and car insurance.

Retaining a Charles County divorce attorney can help. At the Law Office of Robert R. Castro, we help clients prepare for this major life event to minimize any surprises and sudden expenses they may encounter once the papers have been finalized by the court. Here is a look at how your divorce could impact some of the most common types of insurance.

Health Insurance

If you are currently covered under your spouse’s health insurance through his or her employment, you will need to start researching alternative options. Does your employer provide its own health insurance benefits? Divorce is categorized as a qualifying life event that will allow you to seek health insurance coverage outside of the open enrollment period. Be warned, though, the window to apply is tight, so you will want a copy of the final decree in your hands as soon as possible.

Do you work from home or for a small company that does not offer benefits? You may be able to stay on your spouse’s coverage for a period of time after the divorce through COBRA, but this can be extremely expensive as the company will not be subsidizing the premiums — you will be paying the whole amount.

Life Insurance

Life insurance is another important expense to consider after your marriage ends. Was there an alimony award? Do you have children? Having a life insurance policy that names your former spouse in the event you pass away may be necessary. If you have a policy through work and later lose your employment, you may be facing high premiums on your own.

Auto Insurance

When you get divorced, your auto insurance policy will likely change. With that, so will your discounts and benefits. You may find yourself losing a multi-car discount for one thing. If your ex is the one with the better driving record, you may lose that discount, too. Are you moving? You could find that your new zip code is more expensive, or cheaper if you are lucky. If you are shopping for a new policy altogether, you will want to make sure the coverage overlaps so you do not have a lapse in coverage, as that can harm you. If your kids are of driving age, you will also need to decide whose policy they will go under. Most insurance companies will require that the children be insured under the policy for the house where they reside.

Contact a Maryland Family Law Attorney Today

If you are preparing for a Maryland divorce or have other family law matters you need legal assistance with, contact the Law Office of Robert R. Castro today at 301-870-1200 to schedule an initial consultation.