Consider insurance needs during division of marital assets

There are so many details that demand one’s attention when a marriage is ending that many Colorado spouses feel completely overwhelmed. This can be a hectic time, but the decisions made now can have a great deal of impact on one’s future. That is why it is so important to cover all of the bases, especially when it comes to the division of marital assets. One topic that is often overlooked during a divorce is insurance coverage.

Many people are aware that they will need to secure their own health insurance coverage as they transition from married to single. However, they may give little thought to the various other types of insurance that are either required or could be beneficial. Any insurance coverage that was jointly held will now need to be secured by each spouse. That includes car insurance, life insurance, supplemental health or disability insurance and so on.

For most people, their coverage needs will change as a result of the divorce. For example, auto insurance might be far less costly when a spouse’s name (and driving record) is removed from the equation. For a spouse who moves from the family home into an apartment, a renter’s policy will be less expensive than the previous homeowner’s coverage. At the same time, some costs could increase, such as health insurance that was heavily subsidized by a spouse’s employer. When shopping for new coverage, it may be possible to find savings by purchasing multiple types of coverage from the same insurer.

Understanding how these expenses will shift is essential in making various decisions related to the division of marital assets. Spouses who will incur a significantly larger cost related to insurance might need to pursue a different base of assets than one whose insurance costs will markedly decrease. By including insurance in the admittedly long list of divorce to-do items, Colorado spouses can help reach a settlement that is in line with their future financial goals.

Source: msnewsnow.com, “7 ways to protect yourself financially in a divorce”, Andrew Housserin, July 18, 2016