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There are many important factors to consider during the divorce process. In addition to reaching decisions on major issues such as child custody and child or spousal support, you must also determine how to manage practical matters like insurance coverage. Addressing the continuation or termination of benefits after a divorce in Austin is a vital step in securing your financial stability and protecting your future.
Taking the time to evaluate your options and understand your rights can make a significant difference as you move forward. Reach out to our trusted divorce attorneys for more guidance.
When it comes to obtaining or terminating benefits after divorce, it is crucial to consider both the financial implications and the potential impact on your healthcare. Often, one spouse’s insurance benefits will cover the other throughout their marriage. After divorce, however, most people will lose access to their spouse’s employer-provided plan.
That means the spouse without benefits will need to consider their next steps. Several options can provide the benefit coverage that a non-covered Austin spouse needs.
The Consolidated Omnibus Budget Reconciliation Act allows newly-divorced individuals to pay for coverage through their ex-spouse’s plan for up to 36 months after the divorce. That plan will cost more than the spouse paid for the same coverage. Individuals who intend to use COBRA coverage should notify their former spouse and apply for that coverage within 60 days of the divorce.
An individual who loses their insurance because of a divorce can look at health plans through the Affordable Care Act marketplace. A divorce usually counts as a “qualifying life event,” which means individuals will be eligible for coverage immediately, rather than waiting for the open enrollment period.
In some cases, the terms of the divorce decree may require one spouse to obtain insurance for the non-covered spouse for a period of time after the divorce. The divorce decree may lay out specific coverage requirements to ensure adequate healthcare.
If the divorce decree does not include a health insurance requirement, some spouses may choose to negotiate for spousal support so that they can pay for the increased cost of premiums after divorce.
Terminating benefits after an Austin divorce is essential to stay in compliance with the law. Often, if one spouse carries insurance through their employer, they will need to remove their spouse from the policy during the divorce process. Under Texas law, only the employee’s spouse and dependent children can be covered under their insurance policy.
Those benefits end with the divorce, and the covered spouse should notify their employer about the divorce and take care of any needed changes to their policy immediately.
However, the spouse with insurance coverage should not be able to legally remove the other spouse from the insurance policy prior to the divorce. That means the non-covered spouse should be able to retain their benefits until the divorce is finalized.
Insurance benefits are a key consideration during and after the divorce process. Obtaining and terminating benefits after an Austin divorce can be complicated, and you want to make sure that you’ve taken it into account when deciding the terms of your divorce. At Kimbrough Legal, PLLC, we understand all the challenges that can accompany the divorce process and strive to help our clients keep track of all relevant concerns.
Contact us today to learn more about insurance benefits and other essential elements to take into account during your divorce.
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