When dealing with a divorce, it is important to change to your insurance
With so many concerns and issues when going through a divorce, making changes to an insurance policy is probably not at the top of the priority list. But in Burleson, Texas, as in many places, moving this item up the list may be more important than you think. And different types of insurance have different consequences. So consulting a Burleson divorce lawyer may be advisable.
Insurance priorities in divorce
At the top of the priority list is life insurance. The spouse is commonly named as the primary beneficiary when the other spouse buys life insurance. And many people think that this will change automatically when the divorce is final. Instead, a change of beneficiary form must be filed the insurance company.
Next, health insurance is an important issue, especially since one or both parents may have coverage for children. Or if only one spouse has health insurance and the other spouse is covered, the policy may state that the second spouse’s coverage ends upon divorce. So one spouse or even a child may end up without coverage in an emergency that results in extensive medical bills. Having divorce lawyers review the facts of each individual situation may prevent such mistakes.
Insurance on property such as cars and houses is important as well. Because insurers base the rates charged on the age and gender of the insured, along with other factors, removing one spouse from the policy during or after divorce may significantly change the rates for one of both of the parties. Or if one spouse gives title to a vehicle to the other spouse, this can impact insurance coverage.
As far as home insurance, one or both spouses may choose to leave the family home. If one moves out and takes valuable assets from the house such as antiques, art, etc., the fact that those items are no longer on the premises may significantly reduce the amount of insurance owed on the house. Or, if one spouse leaves the house and moves into a rental, then having a rental policy to insure the contents is probably advisable.
Resolving insurance issues during and after divorce can be crucial to the health and financial protection of any of the parties involved. The laws in different states may vary, so consulting divorce lawyers like Lovelace Law, P.C. in Burleson, Texas can help sort out these issues and avoid potential problems that may arise.
If you have any questions about insurance matters during divorce or need legal representation, please call us at 817-953-9656 to set an appointment with one of our attorneys for a free consultation.