The divorce process can quickly become a complicated financial matter. Factors such as property division, the division of debt responsibility, finding a compromise regarding support and writing a comprehensive parenting plan can all derail even the most amicable divorce. Unfortunately, the process does not stop there.
There are several policies that must be revised after the divorce, including:
- Update your health insurance: Generally, the couple will rely on one spouse’s work-provided health insurance to protect the family. When divorce becomes a reality, these policies will need to be adjusted. Either you will have to remove your spouse or get your own health insurance policy through your employer or through an independent source.
- Update your vehicle insurance: Possession of the vehicles will likely be addressed through the process of property division. However, it is crucial that you update the vehicle insurance policy to accurately reflect ownership and who will be the driver of each vehicle.
- Update your homeowners or renters insurance: Whether you own a home or rent property, you likely carry insurance to guard against unforeseen dangers. After the divorce, it is important to revise these policies to reflect the new living arrangements. Whether one spouse now has sole ownership of the family home, or one party must be removed from the rental lease agreement, it is wise to do this as soon as possible.
- Update your life insurance: You might be anxious to remove your ex as a beneficiary on your life insurance policy. It might be wise to double-check with your attorney before doing so. It is not uncommon for a life insurance policy, retirement funds or other financial accounts to get mentioned in the divorce order. Especially if children are involved, the settlement might even require the purchase of a new life insurance policy.
Divorce is rarely a clean break as the couple divides time spent together into separate futures. There are countless factors to remember – some small, some large. It is wise to work with an experienced divorce attorney who can provide guidance and ensure nothing is missed through every stage of the process.