Divorce and Insurance changes

When a divorce is the sole reason for a change, no one wins and the outcome can have drastic repercussions. Unfortunately, one of the most important changes to a family or couple is the final disposition of the insurance policies. As a matter separation, each party must decide as to how the insurance policies will be titled and split between the parties. This does not have to be a messy operation, as the topic is of vital importance to each party. When vehicles are concerned, typically the insurance goes with the party acquiring the car. If the couple decides that it is in the best interest of the wife to keep the insurance, then it is a simple matter of removing one driver/insured from the policy. The rate will change immediately for the better. However, some insurance’s give incentives for multiple car policies and multiple drivers. In this case, no one will win. The best outcome here is one of mutual agreement to have this issue settled so that all parties concerned are covered adequately.

As well, it cannot be ignored that possibly the family has a new teen driver on the policy which presents a whole new set of issues. One being, if the teen is still a minor as is in most states or commonwealths, then the parent who retains custody of the teen must carry him or her on their insurance policy. Sometimes this becomes a matter of economics and the party with the higher income or greater assets carries the teen in addition to the newly incurred raised rate. Either way, no one really escapes the impact and devastation that a divorce will cause for their insurance policies.

While most consider this only to affect the auto policy is short sighted. This situation and all of its problems extends to the life insurance polices too. For example, with the life insurances, one of the first items to change will be the beneficiaries to the policy. One must be prepared for the inevitable, as once a party to a divorce succumbs; it is too late to worry about correcting the beneficiaries.

While it may seem a daunting task with the other separation work at hand with raised emotional issues at the same time, however insurance of any kind must be one of the first topics discussed and settled between the parties before any time passes or an accident happens.