Divorcees in Chicago (and Illinois) may be consumed with what they are entitled to in a property settlement, what they should be paid in alimony, and whether they will have custody of the children. While these are certainly valid concerns, there are other financial issues that are often overlooked.
Insurance, for instance, is commonly put on the back burner while motions are filed regarding parenting time and temporary custody. This post will identify the different types of insurance divorcing parties commonly carry and what can be done with them during the process.
Health insurance - During a divorce, parties must keep their current health insurance in place absent a court order dictating otherwise. After a final decree, the parties may be responsible for their on insurance, but they may have options regarding whether they can stay on a particular plan.
Auto insurance - The same rules apply to auto insurance (and home insurance for that matter). But coverage is especially important if the car is titled in your name, but your soon-to-be ex spouse is driving the car. Simply put, if the car is involved in an accident, you could be held liable if the insurance is not up to date.
Life insurance - This insurance policy must be updated after the divorce is finalized so that the beneficiaries are correctly identified. It is possible for an ex-spouse to receive insurance proceeds even after the divorce is completed. After all, the U.S. Supreme Court recently ruled that an ex-wife that had been left on insurance policy could collect on the policy even though the husband had remarried.
Source: FoxBusiness.com, How to uncouple your insurance in divorce, May 31, 2013