Financial preparation throughout your divorce is one of the most crucial stages to assure a stable financial future, even if it can be a challenging and frustrating process. When going through a divorce, managing insurance concerns is crucial because it has an impact on both your and your ex-spouse’s long-term finances. Here are some suggestions and tactics for protecting your finances when getting a divorce by taking insurance into account.
Review all Existing Insurance Policies
Take time to thoroughly review all existing life, disability, home/renters, auto, health, and other types of insurance policies that were established while married. Before the final settlement agreement is reached, a thorough analysis will help identify whether different or extra policy coverage is required.
Make Sure Coverage Is Adequate
It is vital that any existing policy coverage remains adequate for each individual’s requirements after they divorce. If you have an individual healthcare plan or life insurance policy that was taken out while married, make sure it still provides sufficient coverage post-divorce before signing off on any agreements. Certain coverages may also need to be adjusted owing to changes in circumstances such as income or health status.
Determine Who Will Continue Coverage
When deciding who will maintain coverage for different policies, consider factors such as costs and eligibility. Make sure to factor in the cost of premiums when making decisions about which policies should be assigned to each party. You may also want to research alternative insurance options that better fit your individual needs and budget.
Research the Cost of Health Insurance
Healthcare costs can be a large financial burden, so it is important to review any existing health insurance policies to make sure they are still adequate for both parties. If you need to get a new policy, do your homework on different providers and levels of coverage to ensure you get appropriate protection at a reasonable price.
Utilize Professional Financial Advice
Before making any significant decisions about insurance, be sure to speak with an experienced financial advisor for the best guidance and advice. An experienced financial advisor can offer invaluable advice and information on how to best safeguard your finances during a divorce procedure.
Ensure that your long-term financial goals are still attainable!
If you have more questions about insurance considerations in divorce, our team is here to help you every step of the way. At Purposeful Wealth Advisors, we work closely with divorce attorneys, accountants, and other dedicated professionals to arrive at comprehensive solutions for our clients.
We can help you understand the financial complexities of insurance concerns during divorce.
Contact us today to know more!
Opinions expressed are those of the author and are not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
