Health Insurance Coverage and Your Divorce

There are several decisions that parties going through a divorce or legal separation will have to make that will impact their future. One area often overlooked is health insurance coverage during the proceeding and after a judgment for dissolution is entered.

Upon the filing of a dissolution of marriage or legal separation, specific orders take effect prohibiting the parties from engaging in certain conduct including altering insurance coverage. This means that any insurance in place at the time of filing shall remain in effect until further agreement or order of the court. If you violate these orders by changing the insurance coverage, then the other party may bring a cause of action against you for breach of duty and sanctions.

Generally, insurance coverage for dependents terminates upon the end of a marriage. However, sometimes one party wants to terminate the marital status before finalizing other areas of the proceeding. In that case, the court imposes restrictions on the spouse seeking to terminate status early and requires that person to maintain health insurance coverage or pay medical expenses that would have been covered by insurance.

Once a judgment is entered and the matter is finalized, the covered employee should notify the plan administrator within 60 days of the entry of the judgment of dissolution or legal separation. It is then the responsibility of the supported spouse to acquire health insurance coverage.

The court also takes into consideration the amount of health insurance coverage when determining child support. The court must require that health insurance coverage for the supported children of the parties be maintained by either or both parents if it is available at no cost or at a reasonable cost to the parent or parents. The amount of the premium paid for the parent and any children the parent has an obligation to support is deducted from the gross income available for support.