Jan 18, 2022

Health Insurance and Divorce

Finances

The high price of health insurance creates an additional worry for the spouse who will be uncovered as a result of the issuance of the divorce decree. The parties should review their budgets to make sure they allow for this extra expense. Further, if the couple has children under 18, then they need to plan and agree who will provide the coverage and pay for the expense. Mediation provides a medium to make sure both parties have a source of coverage once the divorce decree is issued and each person is living individually.

Michael Routh, an Attorney at Alpha Center for Divorce Mediation, talks with Georganne Ford, discussing how the mediation process provides a medium to make sure both parties have a source of health insurance coverage once the divorce decree is issued and each person is living individually.

Most employers allow the spouse providing coverage through this employment, to keep the spouse receiving benefits on the policy until the issuance of the divorce decree. This holds true unless there is a prolonged period of separation, and it becomes clear the only reason for not getting the divorce decree is to maintain access to the benefits. Once the decree is issued, the employer will offer the divorced spouse benefits through COBRA for a limited period of time.
The parties may need to adjust alimony/spousal support to make sure the spouse looking for health insurance coverage has the ability to obtain a policy. These additional costs need to be reviewed by both parties to make sure they are on firm ground with their finances.

If the couple has children, the parties should make sure they acknowledge who will be responsible for maintaining the health insurance benefits for these important members of the family. In Pennsylvania, the premium paid for health insurance for the children can be included in the child support calculation. The party paying the bill can be given a credit based on the parties’ percentage of combined net income. It is important to include in the parenting agreement who will be responsible for providing health insurance coverage so there will not be any confusion down the road.

This and other important topics will be introduced and discussed by your Alpha Center attorney mediator. Accepting guidance from a firm that specializes in the practice of divorce mediation will ensure a smooth path along the difficult road of divorce. Alpha’s program may not be fast and cheap, but it will certainly save you time and money over the long run. Let our expertise help ensure the best possible outcome for you, your spouse, and your family.

Alpha Center for Divorce Mediation
Email: alphacares@alpha-divorce.com
Phone: 1-800-310-9085