Be Sure to Insure Your Future

Those going through a North Carolina Divorce often face an uncertain future, both emotionally and financially. A powerful tool too often overlooked in a divorce settlement can drastically reduce that future financial risk – insurance.

Spousal Support and Child Support are often negotiated and settled between the parties. But what happens to the dependent spouse that relies upon those Alimony or Child Support payments if the supporting spouse becomes disabled or passes away? In most cases, the support terminates. We often look towards insurance to prevent that unexpected and immediate end of Alimony or Child Support. Disability or life insurance coverage on the supporting spouse is often negotiated as a term of settlement. A dependent spouse obtains coverage that is payable to the dependent spouse for the total amount of Alimony or Child Support that would be owed. If a dependent spouse falls ill or dies, the supporting spouse would still recover the Alimony or Child Support promised.

When resolving all of your North Carolina Family Law claims, it is important to negotiate with every aspect of your future in mind, and that includes other forms of insurance coverage as well. Health insurance coverage is a fast-rising cost for most North Carolinians and some that are covered by a spouse’s employer-provided plan may not be able to maintain health insurance coverage costs on their own. Settlements often require the spouse providing health insurance coverage to continue to cover the other spouse during the period of separation until a Divorce Judgment is entered. While most employer-provided plans allow continued coverage thereafter via COBRA, the cost is often insurmountable. In that case, you may want to negotiate that your spouse provides private insurance coverage for a period of time post-divorce or until you can find a job that offers health insurance coverage.

Automobile insurance coverage, for yourself or your minor children that also drive, is another overlooked cost that can be negotiated and resolved in a global settlement agreement. The cost to insure a minor child’s vehicle is an issue that causes arguments time and again. Typically the Court will not force one parent to provide automobile coverage for a child and that cost may not be included in the calculation of child support. As a result, parents often cannot agree who should pay for the child’s automobile insurance coverage. Even if your children are years away from legal driving age, you can settle which parent will be responsible for maintaining automobile insurance coverage for the child if and when they are of driving age.

It is best to reevaluate all of your insurance needs and how insurance can help address and eliminate your financial future when going through the Divorce process. If you have questions or need assistance obtaining insurance during your divorce, please call us today at (704) 810-1400 to schedule a consultation.

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