Divorce can be difficult in many ways. There’s no question about that. Even in the best of circumstances, and even when you know that your decision is the right one, you may have many questions and worries. Some of those will be emotional and very personal, and others will concern more practical matters – such as budgeting, moving from one set of bills to two, and paying for things like health insurance, for example. It’s this topic we want to focus on today.
What happens when you get a divorce, and you previously shared health insurance with your spouse? Do you keep the same insurance? Do you pay part of the premiums? Do you have to find an entirely new policy? If so, what options are available? Let’s take a closer look at some of the answers together.
Health Insurance During Legal Separation
In North Carolina, before being allowed to proceed with the official divorce process, a couple must first become legally separated. This means living separate and apart for at least one year without the intention to resume the marriage. After the year has passed, if the parties still wish to get divorced, they can file and begin the official process.
While the separation is legally required, it’s also true to say that a lot can happen in a year. In many marriages, one spouse is the health insurance policyholder, and that policy often covers the entire family. Throughout the course of a separation, health conditions, medical emergencies, or unexpected accidents may occur. Simply leaving the question of health insurance coverage unaddressed during the separation period is usually not an advisable option. Instead, it is better to discuss the issue together and choose the best path forward for your family.
In many cases, when a married couple is separated, they may choose to draft an agreement commonly referred to as a Separation Agreement and Property Settlement. This agreement is technically a legally binding contract between the two spouses that addresses many of the issues that arise during the divorce. Commonly addressed subjects include child custody and visitation, spousal support, possession of the marital home, and property division, including health insurance coverage.
In many cases, although not always, the spouses may agree that during the course of the separation, the employed spouse who is the policyholder will keep the other spouse on their insurance until the divorce is finalized. After the separation is over and the official divorce process begins, the parties can decide how they want to handle health insurance coverage going forward.
A Note About the Doctrine of Necessaries
Sometimes, during a divorce, emotions can be running high. Depending upon the circumstances involved in the divorce, one spouse may not want to allow the other spouse to remain on the insurance plan. While difficult feelings are understandable, if you terminate a spouse’s medical coverage while you are still married, it could end up being a very costly decision.
This is because North Carolina courts recognize what is known as the “doctrine of necessaries.” Essentially, the doctrine holds that while a couple is married, spouses are responsible for the cost of each other’s necessities, which include things like food, clothing, shelter, and medical care. As a result, if you terminate your spouse’s (or your children’s) insurance coverage prior to the divorce and the spouse or child is injured or becomes severely ill, you may end up owing more money in the long run than you would if you had continued to have them on the insurance policy.
Ultimately, prior to an official divorce, it is always wise to consult with an attorney first before making any decisions regarding dropping a spouse or children from a health insurance policy. Once the official divorce process begins, you can move forward with coming to a final agreement (or court order) on the issue.
Two Options for Resolving Divorce-Related Issues
After the legal separation period is over, the official divorce process begins. Throughout a divorce, if the spouse who is not the insurance holder is seeking custody, they may ask to have health insurance provided for the children as part of the divorce settlement. It is important to understand, however, that there is no legal requirement in North Carolina for an ex-spouse to provide health insurance to a former spouse. However, it is an option for the parties to agree to do so if they wish.
When many people picture the divorce process, they imagine it as if it’s something from a television show – two angry spouses and their aggressive attorneys battling it out over every single issue in a courtroom. Some divorces may be like that – but fortunately, they are very few.
In fact, more often today than ever before, couples are choosing to resolve their divorce-related issues almost entirely outside of the courtroom, and this includes healthcare-related matters. By using alternative methods of dispute resolution like mediation or collaborative law, couples can work together to find shared, satisfactory solutions that work best for everyone involved. Doing so saves time, reduces expenses, and helps couples avoid the stress of prolonged courtroom litigation.
While addressing issues out-of-court is a great option, it should be said that this is not necessarily an option for everyone. In some cases, for any number of reasons, a couple simply can’t come to an agreement. In those cases, a court will make the decision for the couple. This includes addressing healthcare and insurance matters.
A Look at Potential Health Insurance Options
As you and your spouse attempt to decide what to do about health insurance after the divorce, you should know that there are a number of options. The two spouses can agree that the children will be covered under one parent’s group plan, with that parent continuing to pay all of the premium. Another option is for the parents to split the cost of insurance or share costs in proportion to their incomes. In some cases, both parents are covered by insurance plans and choose to make one the primary insurance and the other the secondary insurance. There are many options that may work for the family.
Clearly, there are a variety of options for the children, but what about the ex-spouse? In some cases, a couple divorces, and a spouse who was a stay-at-home parent may not immediately be able to get a job and obtain insurance. There can be various reasons for this, but it is important to remember that there are options other than employer-provided health insurance. COBRA is one short-term option, as is negotiating an extra amount of alimony to pay premiums toward a private individual insurance policy.
Call The Law Office of Dustin McCrary Today
Divorce can be full of complicated issues. Regardless of the issue you’re facing – whether it’s a practical issue like health insurance or a more complex emotional issue like creating a custody schedule or addressing co-parenting matters, at The Law Office of Dustin McCrary, we are here for you. No matter what issue you are facing, when you turn to us, you can trust that you are putting your case in good hands. We would love to speak with you, learn your story, and let you know how we can help. If you’re ready to get started, give us a call today. We look forward to speaking with you soon.