Maintaining health and life insurance may be a concern for some people in New Jersey who are going through a divorce. A person who is carried on a spouse’s employer-sponsored health insurance may need to look for another option after the marriage ends.
COBRA allows a person an additional three years of coverage on such a plan after a divorce, but it can be expensive. Some people may find a less costly and longer-term option thanks to the Affordable Care Act.
Life insurance can be important if one party is to be paying alimony to the other party. If the payer dies, the recipient could be abruptly left without this important means of support. With a life insurance policy, it may be possible to continue those payments. The requirement to purchase life insurance may be included in a divorce agreement. The alimony recipient may be the one who wants to own the policy and make the payments since this ensures that it is maintained. Furthermore, life insurance arrangements should be in place before the divorce is final. There is always a risk that the other spouse may be uninsurable. If this is the case, it might be possible to work out another option for asset division to make up for this.
Spousal support is not an element of every divorce. In some cases, spouses may have incomes that are roughly equal and might both be able to support themselves. However, this does not mean that they are immune from financial struggles afterwards. Negotiating a divorce agreement with the help of their respective attorneys instead of going to court can save time and money, but people should make sure they understand their rights. Maintaining two households is more costly than keeping up just one, and people should make sure that they get an adequate share of the marital assets in the divorce.