Can You Stay On Your Spouse’s Health Insurance After Divorce? Insights from a Los Angeles Divorce Attorney
Divorce brings with it a multitude of questions and concerns, especially when it comes to practical matters like health insurance coverage. A common issue I’ve encountered recently in my practice involves clients asking if they can keep their ex-spouse on their health insurance plan after the divorce is finalized. This question came up twice in just the past week alone, making it clear that it’s a topic many people want to understand better.
In this article, I’ll break down the legal realities surrounding health insurance coverage post-divorce, explain why it’s not possible to extend coverage by simply agreeing to it in your settlement, and share some strategic options that might help you navigate these challenges. Whether you’re currently going through a divorce or planning for one, understanding these nuances can save you a lot of headaches down the road.
Understanding Health Insurance Coverage After Divorce
One of the key misconceptions I often see is the belief that a spouse can remain on the other’s health insurance plan for several years after the divorce is finalized if they include it in their settlement agreement. For example, in two recent cases, one client wanted to keep their spouse on the plan for three years post-divorce, and another wanted coverage extended for five years. Unfortunately, this is not legally possible.
Once the divorce is finalized and the mandatory six-month waiting period has passed, the ex-spouse is no longer considered a dependent under the health insurance policy. This means the insurance company will not allow the ex-spouse to remain covered as a dependent, regardless of what any settlement agreement states.
This rule is rooted in public policy and insurance regulations, which do not permit health insurance coverage to extend beyond the legal end of the marriage. Courts have consistently rejected attempts to include provisions in settlement agreements that contradict this policy. So, no matter how much both parties agree, or how clearly it’s written into the divorce documents, it will not hold up if challenged by the insurance provider.
Why Can’t You Just Agree to It?
At first glance, it might seem logical that a couple could agree to continue coverage for a set period after divorce. However, health insurance contracts and policies are governed by federal and state laws, and insurance companies have strict rules about who qualifies as a dependent.
The definition of “dependent” for health insurance purposes does not include an ex-spouse once the divorce is finalized. This means the insurance company has the right to remove the ex-spouse from the policy, and they will do so once they are informed of the divorce or once the waiting period expires.
Trying to include a clause in a settlement agreement that requires one party to keep the other on their plan for years post-divorce is essentially asking the court to enforce something that goes against these established rules. Courts simply do not enforce provisions that violate public policy or insurance regulations.
Possible Strategies to Extend Coverage Timeframes
While you cannot keep your ex-spouse on your health insurance indefinitely after divorce, there are some strategic approaches to manage timing, especially if you want to extend coverage for a short period or for specific reasons.
Delaying the Final Divorce Date
One effective method is to delay the official finalization of the divorce. Since the six-month waiting period before an ex-spouse is removed from the health insurance plan begins only after the divorce is finalized, pushing back the divorce date can effectively extend the time your spouse remains covered.
This can be done in a few ways, such as:
- Submitting the divorce petition later than usual, which pushes back the start of the waiting period.
- Choosing a targeted date for the divorce to be finalized, sometimes months into the next year.
For example, if you want to file taxes jointly for an additional year or have other personal reasons for keeping the marriage legally intact a bit longer, you can coordinate with your lawyer to set a later divorce date. This will allow your spouse to remain on your health insurance until the divorce is finalized and the six months pass afterward.
Keep in mind, this strategy is about timing and does not change the fundamental rules about coverage post-divorce. It only delays when those rules come into effect.
Alternatives to Remaining on Your Spouse’s Plan
Since long-term coverage on your spouse’s health insurance post-divorce is not an option, it’s important to consider alternatives early in the process:
- COBRA Coverage: Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), you may be eligible to continue your spouse’s health insurance temporarily after divorce, usually up to 18 months. However, COBRA coverage can be expensive since you pay the full premium plus administrative fees.
- Individual Health Insurance Plans: You can explore purchasing your own health insurance plan through the marketplace or private insurers. Depending on your income and location, you may qualify for subsidies that make this more affordable.
- Spouse Paying for Your Coverage: Sometimes, as part of the divorce settlement, one spouse may agree to pay for the other’s health insurance premiums for a certain period. This can be arranged, but it requires separate payment arrangements and does not involve remaining on the same insurance policy.
What Happens If You Stay on the Plan Illegally?
Some people might try to remain on their ex-spouse’s health insurance after the divorce without notifying the insurance company, either by oversight or intentionally. While this may happen, it carries potential risks and consequences that you should be aware of.
First, it’s important to recognize that this is not legal. Insurance companies require accurate and timely information about changes in marital status. If they discover that an ex-spouse is still covered without eligibility, they may:
- Cancel the coverage retroactively, leaving the insured person without coverage for a period.
- Seek repayment of claims paid during the period of ineligible coverage.
- Potentially impose fines or penalties on the policyholder for providing false information.
These financial consequences can be significant, and the stress of dealing with insurance disputes can add to the emotional toll of divorce. Therefore, it’s always best to plan ahead and seek legal and insurance advice to ensure you have continuous coverage without violating rules.
Final Thoughts
Health insurance is one of the more complex issues to navigate during a divorce, but understanding the legal framework can help you avoid surprises. The bottom line is that you cannot legally keep your ex-spouse on your health insurance plan beyond the divorce and the six-month waiting period, no matter what your settlement agreement says.
If you need more time for coverage or other reasons, consider delaying the final divorce date strategically, but be mindful that this only postpones the inevitable change in insurance status.
Also, explore alternative coverage options such as COBRA, individual plans, or negotiated payments for health insurance premiums as part of your divorce settlement. These alternatives can provide peace of mind and financial security during a challenging transition.
If you’re going through a divorce in California or anywhere else, it’s wise to consult with a knowledgeable attorney who can guide you through these issues and help you make informed decisions tailored to your situation.
For those interested in more detailed advice and updates on family law matters, feel free to connect with me on my website or social media channels. Understanding your rights and options is key to navigating divorce with confidence and clarity.
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