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What to do about insurance in a divorce

On Behalf of | May 6, 2019 | Divorce

When couples in Arizona get a divorce, they need to decide what to do about insurance coverage. For example, one spouse may be covered on another spouse’s health insurance plan. When this is the case, that spouse may need to look into COBRA or seek other options for health insurance coverage.

Life insurance can be particularly important to a spouse who is getting alimony. Without this protection, if the paying spouse dies, the surviving spouse may have this support cut off abruptly.

Some couples agree to include a provision about life insurance coverage in the divorce agreement. It may be best for the spouse who is receiving support to own the policy and make the payments since this can help ensure that the policy is maintained. The life insurance policy should be purchased before the divorce is final because the spouse might be uninsurable. If this is the case, it may be possible to make other arrangements, such as changing how property is divided, to make up for this.

Since Arizona is a community property state, marital assets are supposed to be divided equally in a divorce. There is some flexibility in how this can be done. A person who is considering a divorce may want to consult an attorney about their financial paperwork. Working with the attorney, the person might start to get a sense of how divorce could affect finances and property division. People who expect to pay child or spousal support may be concerned about how much they are likely to be expected to pay, and lower-earning spouses might be concerned about supporting themselves and how much alimony they can expect. Alimony is usually not permanent and may only last for as long as it takes a spouse to retrain for a new job.