Remember insurance coverage during property division

The process of dividing marital wealth can seem overwhelming for many Florida spouses. In order to achieve a fair division of assets, each and every item of value must be considered. Property division negotiations often become heated, and dividing marital wealth can quickly become the central focus of an otherwise collaborative divorce. It is important to remember the impact that health insurance coverage can have on one’s financial stability in the years that follow a divorce.

Health insurance is not an asset that can be negotiated during divorce. However, for spouses who have enjoyed the ability to obtain affordable health insurance coverage through their spouse’s employment, it is absolutely essential to have a plan in place for replacing that coverage once the divorce is made final. For some, that can mean a substantial financial burden.

If purchasing a separate health insurance policy is going to be prohibitively expensive, it is important to know that fact during property division. A spouse who will need access to funding in the months and years following the divorce may wish to pursue more liquid assets than one who has access to subsidized health insurance. That can change the scope of property division negotiations.

As with many other aspects of divorce and property division, health insurance considerations should be made early in the divorce process. Knowing what one’s financial obligations are likely to be in the months and years that follow a divorce empowers spouses to make decisions that are aligned with those interests. For those in Florida who are unsure of their best options, it may be helpful to work with a financial planner before reaching an agreement.

Source:, “Getting Divorced? How Divorce Affects Your Taxes“, Sheiresa Ngo, Sept. 12, 2016

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