For many Florida residents, the end of a marriage represents the death of that relationship,…
On behalf of The Law Office of Gustavo E. Frances, P.A.
When making the transition from married to single, many Florida residents fail to include insurance coverage in their planning. For most people, however, their insurance coverage is bundled with that of their spouse. When a divorce takes place, each party will have to find his or her own coverage, which can be an unexpected expense. It takes a degree of planning to factor insurance costs into the overall divorce process, and to ensure that one’s post-divorce budget can handle the changes to come.
For example, if one spouse has enjoyed relatively low-cost health insurance through his wife’s employer-subsidized plan, he may be surprised at the cost of obtaining a similar level of coverage on the open market. At the same time, if his auto insurance costs are high due to his wife’s poor driving record, he may be pleased to find that dropping her from his policy will lower his annual auto insurance costs by nearly half. Spouses who want to retain the family home will shoulder the burden of homeowner’s insurance, while those who move into an apartment might want to consider a renter’s policy.
Life insurance is another issue that should be discussed during a divorce in which one spouse will receive child support or alimony from the other. An insurance policy that would cover the full value of expected payments is a good idea so that the dependent spouse would not be left in a financial bind in the event that his or her ex dies before those payments are set to expire. Life insurance policies can be negotiated into the larger divorce settlement.
Florida spouses should begin by making a list of all insurance coverage that they currently enjoy, as well as any projected changes that will come as a result of the divorce. Next, it is time to shop for new coverage. It may be possible to find lower-cost coverage by bundling policies with the same insurer, or by speaking with a representative from the insurer that has provided previous coverage. Each individual will have his or her own set of needs when it comes to various types of insurance, but the topic should be part of the larger divorce discussion.
msnewsnow.com, “7 ways to protect yourself financially in a divorce“, Andrew Housserin, July 18, 2016