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Insurance and divorce

Health insurance and divorce

If you're on your soon-to-be ex-spouse's health insurance, it's a good idea to shop for coverage during the divorce process—you'll need to secure your own. 
Generally speaking, when health insurance is through an employer, the policy stays with the primary owner, the employee of the company providing it. In some instances, the spouse not employed by the company may have continued workplace coverage for a period of time after divorce. 

What is COBRA, and how does it work?

If you don't have your own work coverage, you may be able to continue your spouse's existing coverage for up to 36 months under the provisions in the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA coverage can cost substantially more than employer-sponsored health coverage, as you are entirely responsible for the premiums. 
Investigate all of your potential options, including any health insurance that may be offered by your own employer. You may also want to shop your state's health insurance exchange under the Affordable Care Act for a new policy. 

Don’t forget about disability insurance

There are 2 main types of disability insurance: long-term and short-term. The amount of coverage you need will be determined by the level of income that would potentially need to be replaced. It’s important to review your disability insurance, especially if you have been covered by an ex-spouse's employer plan.

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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.