It is important to consider issues regarding insurance,
especially health, dental, optical, and life insurance. If there are
minor children it must be determined which parent will provide health
insurance for them. If one spouse does not have insurance available
through his or her employment, insurance can be made available for that
spouse, from the other's employer through the COBRA laws. These are
laws that provide the divorced spouse the option to continue being insured
as during the marriage through the ex-spouse's insurance company without
having to apply and complete an insurance physical. In other words,
their insurance continues just as it did when the parties were married.
The divorced spouse is generally responsible for their portion of this
insurance cost. The parties will need to determine what the cost of
the COBRA insurance will be following the dissolution, and if purchasing
the COBRA insurance is the best option for the other spouse. There are
often less expensive insurance options to be explored.
When determining issues of medical, dental and eye insurance,
it must be clearly stated who is responsible for insurance deductions,
co-payments and un-insured health care expenses. For example, parents
may agree to split these health care expenses equally. Non-insured expenses
may include such things as contact lenses, solutions, over-the-counter
drugs, sports medicine such as ankle tape, safety equipment, orthodontic
treatment, etc. Insurance deductibles should be defined in the final
agreement, as well as how this expense will be handled between the parties.
Normally one or both of the parents are required to keep
life insurance in place and to name either the other party, the children,
or a trust in favor of the children, as a beneficiary, so that child
support and/or spousal maintenance can be secured. In cases where child
support is ordered, it is typical to require the parent paying the child
support, to provide at least enough insurance to cover the support payments
if he or she were to die prior to the end of the support being paid.
Similarly, if a parent is paying spousal maintenance to the other parent,
it is sometimes agreed that that parent will provide life insurance
that would allow the maintenance to continue upon their death. If this
is not agreeable, the receiving spouse may be wise to purchase their
own policy on the paying spouse to protect them in the event of the
spouse's death.
