Divorce is a major life transition, and while you’re busy navigating legal paperwork and moving trucks, insurance often ends up at the bottom of the "to-do" list. But here’s the reality: divorce is a massive insurance event.
Because most couples share policies to save money or simplify their lives, splitting up means you have to untangle those threads quickly to avoid being left unprotected. From health coverage to your car policy, here is everything you need to know about staying protected during this new chapter.
Health insurance is usually the most urgent item on the list. If you are covered under your spouse’s employer-sponsored plan, things change the moment the ink is dry on your divorce decree.
Most company plans prohibit covering an "ex-spouse." Once the divorce is final, you are no longer considered a legal dependent. You can't just "stay on the plan" because it’s easier; doing so could even be considered insurance fraud.
If you find yourself suddenly uninsured, COBRA is a federal law that lets you keep your current coverage for up to 36 months.
The good news? Divorce is a Qualifying Life Event. This means you don't have to wait for the standard "Open Enrollment" period to get a new plan. You have a window (usually 60 days) to sign up for your own employer’s plan or find one on the Healthcare Marketplace.
Usually, children’s coverage remains unaffected by the divorce itself. However, your divorce decree will specifically state which parent is responsible for providing their insurance and how the premiums will be split.
Untangling your car insurance is about more than just a lower bill; it’s about legal liability.
Insurance companies base your rates on where the car is "garaged." If one of you moves out, you need separate policies immediately. You cannot list a car on a policy at an address where it doesn't actually live.
Expect your premiums to go up slightly. When you split, you’ll likely lose:
If you have teens, the divorce decree should decide whose policy they belong to. Usually, they are listed on the policy of the parent who has primary custody or where the car stays most often.
Pro Tip: Make sure to remove your name from your ex’s policy and vehicle title. If they get into an accident and your name is still on the paperwork, you could be held liable for the damages.
Life insurance is often a point of contention because it involves future security and, sometimes, current cash.
In many states, divorce does not automatically remove an ex-spouse as a beneficiary. If you don't manually update your policy with the insurance company, your ex could still receive the payout if something happens to you. Check out this guide on updating beneficiaries after major life changes.
Often, a judge will require the person paying alimony or child support to maintain a life insurance policy. This ensures that if the "payor" passes away, the "payee" still has the financial support they were promised.
Whether you’re keeping the house or moving into a new apartment, your property insurance needs a refresh.
There are a few "hidden" insurance types that people often overlook during a split:
Not usually "automatically" on day one, but once the divorce is final, you are legally ineligible to stay on a spouse’s plan. You generally have a 30–60 day window to find new coverage.
No. Insurance companies require drivers on the same policy to live in the same household. Keeping an ex on your policy after they move out could lead to a denied claim.
You must contact your insurance provider directly and fill out a "Change of Beneficiary" form. A divorce decree alone is often not enough for the insurance company to make the change.
The best way is to work with an independent agent who can shop around for the best rates for your "new" single status.
Navigating the world of "Divorce Insurance" can feel overwhelming, but you don't have to do it alone. Moving is stressful enough, let us handle the paperwork.
At Majdas Touch Insurance, we aren't tied to just one company. We act as your "personal shopper," scouring hundreds of carriers to find the best fit for your new life and your new budget. Choose Majda Touch Insurance to help you untangle your old policies and build a solid foundation for your new life.
Ready to update your protection? Reach out to Majdas Touch Insurance today for a free quote!
