If you are in the process of getting a divorce, one consideration you might not think of immediately is how it will affect your insurance policies. In many cases, you will need to have your name taken off of an insurance policy when the divorce is finalized ”“ here’s a primer on some types of insurance you’ll need to change.
Filing for divorce starts an automatic, temporary injunction regarding financial matters and insurance. This means that neither spouse can modify an insurance policy, remove the spouse from the policy or stop paying premiums. However, after the divorce, spouses will likely need to have separate insurance policies, so plan ahead for these changes.
If you are a dependent on your soon-to-be-ex spouse’s health insurance, you will no longer be able to be on it once the divorce is final. So, you should prepare ”“ you can buy health insurance from the health insurance marketplace, or seek it through your place of employment if it is offered. Don’t let a divorce lead to a lapse in your health insurance history, or you may regret it come tax time next year.
Are both of you named on an auto insurance policy? That’s no bueno. One of the problems here is that you are both going to have to speak to your insurance provider because they are not allowed to remove one person from a joint insurance policy without the consent of the other. Taking care of this prior to divorce will make it so that you and your ex can have a clean ”“ or at least, cleaner ”“ break than having to take care of it after a potentially contentious divorce proceeding.
If you’re not living in the marital home, then you probably don’t want to be on the insurance. Whoever leaves the home should remove his or herself from the insurance policy. If you are the one leaving and you’re planning on finding a small apartment to live in until you get back on your feet, look into renter’s insurance. There are a lot of people in apartment complexes, and you want to ensure your belongings are protected from those little things like theft or fire. Basic renters insurance can be very reasonably priced.
Speaking to a Denver divorce attorney about your case is the first step in ensuring that your finances are in order after your separation.