There are a lot of things to consider when a couple in Colorado decides to divorce. You might be surprised how many loose ends are tied to insurance. A recent article on MSN highlights some important insurance-related tips.
• It's okay for homeowner insurance to stay in both names if a couple decides to continue living together post-divorce for financial reasons, something that is becoming more and more common in these economic times. However, in this situation, it's best to still have a written agreement regarding who is in charge of insurance payments and the mortgage.
• Be sure to change the beneficiary on your life insurance policy if you don't want your ex-spouse to collect. Even if you marry someone else and have many happy years together, you may still be bound to the life insurance contract, and if your ex is listed, he or she could remain the beneficiary no matter what, depending on what state you live in. That's why you should change it if that is your wish.
• If you relied on your spouse's health insurance, you may be eligible for COBRA health insurance. The law allows coverage for people who lose their health insurance for reasons such as job loss, divorce or death of a spouse. If you pay the monthly premiums and fees, it's possible to obtain coverage from an ex-spouse's plan for up to 36 months after a divorce.
These are just a few of the things that may come up after a divorce. When in doubt, it may be best to contact a qualified professional to guide you through the process.
Source: MSN, "5 post-divorce insurance do's and don'ts," Barbara Marquand, Feb. 7, 2012