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Health insurance and divorce

Navigating your health insurance after divorce.

Key takeaways

  • After divorce your health insurance coverage can change.
  • Don't be caught off guard, make sure you're covered after divorce.
  • Investigate all your potential options, choose what's best for your situation.

Health insurance and divorce

Divorce can be filled with many different emotions. Along with it comes transitions too. Health insurance is something to keep top of mind, especially if you were covered under the same plan as your spouse. 
 
It's not uncommon for married couples to be covered under a health plan, provided by one spouse's employer. During legal separation, annulment, or throughout the divorce process, both spouses typically remain covered. This means the employed spouse generally cannot remove the other from the health plan. However, once the divorce is finalized, the employee will need to let their employer know so the ex-spouse can be removed from the health plan. Because of this, if legally separated, getting an annulment, or going through the divorce process, it's a good idea for the employee to secure their own health coverage.

Health insurance: COBRA

If you don't have coverage through an employer, you may be able to continue your existing coverage for up to 36 months under the provisions in the Consolidated Omnibus Budget Reconciliation Act (COBRA). However though, according to the U.S. Department of Labor, this only applies if the group health plan is covered by COBRA and the employer has at least 20 employees. To add, it's noteworthy to mention that COBRA also doesn't cover plans sponsored by the federal government or by churches and certain church-related organizations.1
 
COBRA coverage can cost substantially more, as you're responsible for the full premium amount plus up to a 2% administrative fee. If you opt for COBRA, keep in mind that you have 60 days to enroll (from the later of the date on your COBRA Election Notice or loss of coverage date), and 45 days to make your first payment.1
 
Investigate all your potential options, including any health insurance that may be offered by your employer. You may also want to shop your Health Insurance Marketplace under the Affordable Care Act (ACA) for a new plan. 

Health insurance: Health Insurance Marketplace

Health Insurance Marketplace plans are available for individuals and families. There's no income limit—pre-existing conditions are covered, out-of-pocket costs are capped, and more.2 It's a popular option.

Loss of coverage due to divorce is a qualifying life event that allows for a special enrollment period for Health Insurance Marketplace plans as well. You have 60 days from the time you lose your employer-based coverage to enroll in the Marketplace.

Before you opt for a plan under the Marketplace, it's okay to do your research to learn more, including about eligibility (e.g. you can't enroll in a Marketplace health or dental plan if you have Medicare coverage) and patient protections.2

Health insurance: Your current employer

Securing health insurance through your employer is practical and can even be a more affordable option that COBRA or private insurance. 

If your employer doesn't have health insurance, an alternative is private insurance—although historically, private insurance plans are more costly and can come with restrictions.

Loss of coverage due to divorce is a qualifying life event that allows for a special enrollment period. For employer coverage, HIPAA requires employers to give 30 days after a qualifying life event to request enrollment. If your employer offers health insurance and you opt for this route, talk with your employer about plan options and cost, how to enroll, and select a plan that works best for your situation.

Health insurance: Medicaid

After your divorce has been finalized, if you can't afford health plan, Medicaid might be an option. Medicaid offers free or low-cost coverage to some people with lower incomes including adults, children, older persons, pregnant women, and those with disabilities.

Before you opt for Medicaid, it's a good idea to do your research and learn more, specifically about benefits and programs within your state, eligibility, and limitations like Medicaid provider shortages.

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More to explore

1. "FAQs on COBRA Continuation Health Coverage for Workers," Employee Benefits Security Administration, U.S. Dept. of Labor. As of August 2026. 2. "How to get insurance through the ACA Health Insurance Marketplace," USA.gov, November, 2025.

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

This information is general in nature and provided for educational purposes only.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

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