Divorce brings many changes, including the potential loss of health insurance coverage for a dependent spouse. At Richards Family Law, we understand that maintaining health insurance is a crucial concern for many of our clients. Here’s what you need to know about staying insured after divorce and the options available to you.

What Happens to Health Insurance After Divorce?

In most cases, if you were covered under your spouse’s employer-sponsored health insurance plan, that coverage will end once the divorce is finalized. Employers are generally prohibited from continuing coverage for a former spouse.

It’s important to plan ahead to ensure there’s no gap in coverage. Understanding your options can help you transition smoothly.

Options for Health Insurance After Divorce

1. COBRA Coverage:
   Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), you may be eligible to continue coverage through your spouse’s employer-sponsored plan for up to 36 months after divorce.

   • Pros: You can keep the same coverage.

   • Cons: COBRA can be expensive because you’ll be responsible for the full premium, including the portion previously covered by your spouse’s employer.

2. Marketplace Insurance:
   The Affordable Care Act (ACA) allows you to purchase health insurance through the federal or state marketplace. Divorce is considered a qualifying life event, so you can enroll outside the regular open enrollment period.

   • Pros: Plans are often subsidized based on income, making them more affordable.

   • Cons: Coverage and networks may differ from your previous plan.

3. Employer-Sponsored Insurance:
   If you’re employed, check with your employer about enrolling in their health insurance plan. Divorce is a qualifying event that allows you to join outside the usual enrollment period.

   • Pros: Premiums are often lower due to employer contributions.

   • Cons: Coverage options depend on your employer’s plan.

4. Medicaid or Medicare:
   Depending on your income or age, you may qualify for Medicaid or Medicare.

   • Medicaid: Provides free or low-cost coverage based on income.

   • Medicare: Available for individuals 65 and older or those with certain disabilities.

5. Private Insurance:
   You can purchase a plan directly from an insurance company.

   • Pros: Offers flexibility in choosing a plan that suits your needs.

   • Cons: Premiums can be higher without employer or government subsidies.

Preparing for the Transition

To avoid a gap in health insurance coverage after your divorce:

• Review Your Options Early: Begin exploring alternatives as soon as divorce proceedings start.

• Budget for Health Insurance: Factor potential costs into your post-divorce financial planning.

• Consult a Professional: Work with a family law attorney or financial advisor to understand how insurance costs fit into your overall settlement.

How Richards Family Law Can Help

At Richards Family Law, we help clients navigate the financial complexities of divorce, including planning for health insurance. Our team ensures that your rights are protected during negotiations and that the terms of your settlement reflect your needs.

Contact Richards Family Law today to schedule a consultation. Let us help you secure a stable and healthy future after divorce.