Among the many things that divorcees will have to settle during a divorce, insurance coverage may be a contentious, yet complicated issue. Couples will have to reconcile medical coverage for each other following the split, as well as for their children.
This post will give some helpful pointers on negotiating points regarding insurance coverage.
Health insurance for kids – As a matter of law, parents are obligated to maintain health insurance for their children, regardless of the custody arrangement. The parent with the most advantageous coverage will usually keep the kids under that policy, and the parents may split the costs of the monthly premiums that come with the plan. Also, medical costs not covered by insurance (otherwise known as unreimbursed medical expenses) are commonly split between the parties. However, if there is a significant disparity between incomes, the court may order the parents to pay for coverage according to their income levels.
Parents should also be aware that under the Patient Protection and Affordable Care Act, children can remain on their insurance plans until age 26, regardless of being covered by another health insurance plan (such as a college health plan).
Auto insurance for teen drivers – Dealing with continuing auto insurance for teen drivers can create another point of contention. Unlike health insurance, there is no legal right for children to receive auto insurance, so the court will not order a parent to continue such insurance after a divorce. Moreover, a negotiated agreement may not be included in a parties’ divorce decree.
Instead, auto insurance will have to be an independent decision that is made between a parent and his or insurance agent.
For additional questions regarding insurance coverage, consult an experienced family law attorney.
Source: FoxBusiness.com, Split Time: Kids, Custody and Insurance, December 6, 2012