Divorce brings significant changes to various aspects of a Tennessee couple’s life, including finances and insurance coverage. As you navigate the process of untangling your life from your former spouse, it’s essential to reassess and update your insurance policies to ensure adequate protection for your post-divorce life.
If you had coverage under your spouse’s health insurance plan, you will likely lose that coverage after the divorce is finalized. It’s crucial to explore alternative options to maintain health insurance for yourself and your children, if applicable. Consider obtaining coverage through your employer, exploring individual health insurance plans or researching if you qualify for government-sponsored programs such as Medicaid.
If you had a life insurance policy listing your former spouse as the beneficiary, you may want to update the beneficiary designation to align with your post-divorce circumstances. Additionally, reassessing the coverage amount may be necessary to ensure it adequately protects any financial obligations, such as child support or spousal maintenance, and consider whether additional coverage is necessary to safeguard your children’s financial future.
Update your car insurance policy to reflect any changes in vehicle ownership or usage. If you and your former spouse owned multiple vehicles together, determine who will retain each vehicle and adjust the policy accordingly.
Determine whether you will keep the marital home or sell it as part of the divorce settlement. If you retain ownership, ensure that you update the policy to reflect your sole ownership and adjust the coverage as needed. If you are transitioning to renting a new residence, consider obtaining renters insurance to protect your personal belongings and liability.
Disability and long-term care insurance
Disability insurance and long-term care insurance are often overlooked but can be vital components of financial protection after a divorce. Evaluate your disability insurance policy to ensure it adequately covers your income and financial obligations in the event of a disability. If you do not currently have disability insurance, consider obtaining coverage to safeguard your financial stability.
Keeping insurance current to your present needs
Divorce brings about significant changes, and adjusting your insurance coverage can help address them proactively to protect your financial well-being. Try to keep your future needs in mind as well as those of your children.