By Ed Olkovich
You've worked hard all your life to provide the very best for your family, friends and community. How do you ensure this will continue? The answer is quite simple. Through a legal document -- your will.
Some things to consider:
1.Be Responsible
The time and cost of a lawyer-prepared will is small compared with its benefits. A will avoids uncertainty, which can lead to arguments among beneficiaries, delaying settlement of your estate and increasing costs. You'll also have peace of mind, knowing your affairs are in order and your beneficiaries will not have to deal with the courts to settle your affairs while they are grieving.
2.Put Family First
It's possible that you and your partner could die together. Only by appointing a guardian in a will can you specify who will care for your children.
3.Your Good Intentions
If you do not make a will your good intentions to provide for your friends, charities, religious institutions or relatives mean nothing. The law dictates exactly how your assets are divided among your family. Wills ensure your legally-binding wishes are carried out.
4.Tax Savings
Canada no longer has estate or inheritance taxes, but death triggers federal income taxes. A proper estate plan can minimize taxes now and for your beneficiaries. Why not plan to pay less taxes?
5.Support a Charity
A bequest to your favorite charity continues your support and can reduce taxes.
6.Who's In Charge?
Your estate trustee or executor is the person named in your will to distribute your estate. An executor can be a family member, a friend, lawyer or trust company, and there can be more than one executor. Professional trustees can manage trust funds for the financial security of spouses who lack financial expertise or a dependent child.
7.Lawyers Help
Explaining legal concepts and preparing wills to meet your estate needs are what lawyers do. Many people think that they'll save money by preparing their own will however, if imprecise language is used, it may end up costing more money, in the long run, because of interpretation problems.
8.Make Plans
Making a will gives you assurance that your affairs are in order. Preparation of an estate plan includes powers of attorney to deal with incapacity and personal care issues. Consider funeral arrangements and organ donations too.
9.Revisit Your Will
Even though you have a will, marriage, separation, divorce, or the birth of a child all mean your will must be revised. Unless your will is current, it cannot reflect your needs. Changes in your assets, beneficiaries, estate trustees, and the law require regular reviews of your will and estate plan.
10.Don't Lose It
Remember to keep a copy of your will at home and the original in a safe place. Make sure someone knows where it is. What good is a well-written will if no one ever finds it?
Showing posts with label divorce cause. Show all posts
Showing posts with label divorce cause. Show all posts
Sunday, February 8, 2009
divorce
Divorce or dissolution of marriage is a legal process that leads to the end of a marriage.
Divorce laws vary considerably around the world. Divorce is not permitted in some countries, such as in Malta and in the Philippines, though an annulment is permitted.
The legal process for divorce may also involve issues of spousal support, child custody, child support, distribution of property and division of debt, though these matters are usually only ancillary or consequential to the dissolution of the marriage.
In some jurisdictions divorce does not require a party to claim fault of their partner that leads to the breakdown of marriage. But even in jurisdictions which have adopted the "no fault" principle in divorce proceedings, a court may still take into account the behaviour of the parties when dividing property, debts, evaluating custody, and support.
In most jurisdictions, a divorce must be certified by a court of law to become effective. The terms of the divorce are usually determined by the court, though they may take into account prenuptial agreements or postnuptial agreements, or simply ratify terms that the spouses may have agreed to privately. In the absence of agreement, a contested divorce may be stressful to the spouses and lead to expensive litigation. Less adversarial approaches to divorce settlements have recently emerged, such as mediation and collaborative divorce, which negotiate mutually acceptable resolution to conflicts. In some other countries, like Portugal, when the spouses agree to divorce and to the terms of the divorce, it can be certified by a non judiciary administrative entity, where also can be served an Electronic Divorce since March 2008.
In cases involving children, governments have a pressing interest in ensuring that disputes between parents do not spill over into the family courts. One way of doing this is through the encouragement of a parenting plan. In the United States, all states now require parents to file a parenting plan when they legally separate or divorce.
The subject of divorce as a social phenomenon is an important research topic in sociology. In many developed countries, divorce rates increased markedly during the twentieth century. Among the nations in which divorce has become commonplace are the United States, Canada, and Scandinavia. Japan , France, and Italy retain a lower divorce rate, and it has decreased recently.
From Wiki
Divorce laws vary considerably around the world. Divorce is not permitted in some countries, such as in Malta and in the Philippines, though an annulment is permitted.
The legal process for divorce may also involve issues of spousal support, child custody, child support, distribution of property and division of debt, though these matters are usually only ancillary or consequential to the dissolution of the marriage.
In some jurisdictions divorce does not require a party to claim fault of their partner that leads to the breakdown of marriage. But even in jurisdictions which have adopted the "no fault" principle in divorce proceedings, a court may still take into account the behaviour of the parties when dividing property, debts, evaluating custody, and support.
In most jurisdictions, a divorce must be certified by a court of law to become effective. The terms of the divorce are usually determined by the court, though they may take into account prenuptial agreements or postnuptial agreements, or simply ratify terms that the spouses may have agreed to privately. In the absence of agreement, a contested divorce may be stressful to the spouses and lead to expensive litigation. Less adversarial approaches to divorce settlements have recently emerged, such as mediation and collaborative divorce, which negotiate mutually acceptable resolution to conflicts. In some other countries, like Portugal, when the spouses agree to divorce and to the terms of the divorce, it can be certified by a non judiciary administrative entity, where also can be served an Electronic Divorce since March 2008.
In cases involving children, governments have a pressing interest in ensuring that disputes between parents do not spill over into the family courts. One way of doing this is through the encouragement of a parenting plan. In the United States, all states now require parents to file a parenting plan when they legally separate or divorce.
The subject of divorce as a social phenomenon is an important research topic in sociology. In many developed countries, divorce rates increased markedly during the twentieth century. Among the nations in which divorce has become commonplace are the United States, Canada, and Scandinavia. Japan , France, and Italy retain a lower divorce rate, and it has decreased recently.
From Wiki
Friday, January 30, 2009
McCartney Opens Up About 'Dark' Divorce
Sir Paul McCartney has finally spoken about his split from Heather Mills, insisting their divorce battle left him in a "dark place."
McCartney and Mills parted ways in May 2006 after four years of marriage, and their subsequent divorce turned nasty with Mills falsely accusing the star of being an abusive husband and a drunk.
The judge overseeing the case awarded Mills a $36.3 million settlement but later slammed her evidence as "unreliable" and accused the 40-year-old of indulging in "make-believe."
The former Beatle insists he has maintained a "dignified" silence about the end of his marriage, but has now spoken about his decision to keep his emotions private.
He says, "I've been through a dark place. I am a man who needs love. Every man needs love, guys like romance. I do anyway.
"Things don't always work out but I like the idea of being dignified. I don't think it helps to mouth off all the time."
The former couple share a 4-year-old daughter, Beatrice. McCartney is now dating American socialite Nancy Shevell.
Source: http://www.sfgate.com
Thursday, January 29, 2009
How Much Life Insurance Do You Need After Divorce?
(provided by Ann O'Flanagan, Esq.)
Experts believe that a surviving spouse with children needs at least $100,000.00 worth of insurance for every $500.00 of pre-tax income. If you require $3,000.00 a month ($36,000.00 per year) to cover your expenses, your spouse should have $600,000.00 of life insurance. ($3,000.00/500.00 = 6; 6 x 100,000.00 = $600,000.00) of insurance to meet your bills. The surviving souse would invest the $600,000.00 at a conservative interest rate of 6 % which would generate $36,000.00 a year in interest before taxes. Because the surviving spouse and children would be living off the interest, rather than the principal. the income would last forever.
Many people feel that $50.000.00 worth of insurance, that's commonly part of, an employee benefit's package. is enough. It is not.
Therefore, at the time of divorce, it is imperative that additional insurance be obtained so that, in the event that your spouse dies, and alimony and child support ceases, the surviving spouse and children have sufficient funds to live on.
To get life insurance "by telephone or on line" the following sources can be considered:
InsuranceQuote Services
800-972-1104
www.iquote.com
MasterQuote
800-337-5433
www.masterquote.com
QuickQuote
800-867-2404
www.quickquote.com
Quotesmith.com
800-556-9393
www.insure.com
TermQuote
800-444-8376
www.termquote.com
Information provided by:
Ann O'Flanagan located at
http://www.divorcesource.com/NJ/oflanagan.html
Experts believe that a surviving spouse with children needs at least $100,000.00 worth of insurance for every $500.00 of pre-tax income. If you require $3,000.00 a month ($36,000.00 per year) to cover your expenses, your spouse should have $600,000.00 of life insurance. ($3,000.00/500.00 = 6; 6 x 100,000.00 = $600,000.00) of insurance to meet your bills. The surviving souse would invest the $600,000.00 at a conservative interest rate of 6 % which would generate $36,000.00 a year in interest before taxes. Because the surviving spouse and children would be living off the interest, rather than the principal. the income would last forever.
Many people feel that $50.000.00 worth of insurance, that's commonly part of, an employee benefit's package. is enough. It is not.
Therefore, at the time of divorce, it is imperative that additional insurance be obtained so that, in the event that your spouse dies, and alimony and child support ceases, the surviving spouse and children have sufficient funds to live on.
To get life insurance "by telephone or on line" the following sources can be considered:
InsuranceQuote Services
800-972-1104
www.iquote.com
MasterQuote
800-337-5433
www.masterquote.com
QuickQuote
800-867-2404
www.quickquote.com
Quotesmith.com
800-556-9393
www.insure.com
TermQuote
800-444-8376
www.termquote.com
Information provided by:
Ann O'Flanagan located at
http://www.divorcesource.com/NJ/oflanagan.html
Health Insurance and Divorce
(provided by Theodore Sliwinski, Esq.)
1. How will my divorce impact my health insurance benefits?
A divorce causes major issues with health insurance benefits. Many families have an employer provided and/or paid for health insurance benefits that cover health insurance for the entire family. After a divorce, the spouse with the family health insurance coverage can no longer cover the other dependent spouse. They are no longer "family" members who can take advantage of the employer-based health insurance policy. There is no way around this unfortunate reality. If a couple gets divorced, then the dependent spouse will lose his or her health insurance coverage. If both parties do not have adequate health insurance benefits available, and if the cost of obtaining COBRA benefits or an alternative health insurance policy is too costly, then there is one way to continue benefits without additional cost. That way is to enter into a separation agreement, but to delay filing for divorce. That way, the parties actually do remain married and they can stay on the same health insurance plan even though they are separated. The parties can consent to waiting for one, two or more years before either spouse files for a divorce. While the parties will remain married, their property, custody, and support issues will be addressed in their separation agreement. Under some circumstances, this is an optimal resolution. Another option for divorcing couples is for the dependent spouse to obtain COBRA coverage. COBRA is a federal law which mandates that a person covered under a health insurance policy be given the right to continue that coverage, at their own cost, for a set time period if certain requirements exist. For example, if you obtain a divorce and if your spouse had family health insurance coverage through his employer, then the employer would have to provide COBRA coverage for you after the divorce. That COBRA coverage would require that you have the same health insurance policy, although your coverage would now be individual and not family. You would have to pay the employer's cost for that individual policy.
2. What are the different types of medical insurance available?
a. Employer-provided medical insurance - The best source for medical insurance today is your employer-provided plan because its cost is most likely subsidized by your employer. These medical plans are generally one of four types: indemnity plans, service provider plans, preferred provider plans or health maintenance organizations.
b. Individual medical insurance - Medical insurance policies are available directly from insurance companies for individuals. The advantage of this type of policy is that you may shop for the type of benefits you want. The disadvantage is you have to pay the whole cost of the policy premiums.
c. Medicare - Medicare provides mandatory basic hospitalization benefits for all U.S. citizens over the age of 65 under Part A coverage. Part B coverage is a voluntary program that provides coverage for doctor bills at a monthly cost to you. Medicare typically covers only half of the average senior citizen's health care bills. You can supplement it with Medigap insurance.
3. What is COBRA coverage?
COBRA is the federal law that entitles you to continued coverage in an employer's group health plan, even if you've become ineligible to participate because of job loss or divorce. If you were covered under your spouse's employer-sponsored health plan policy prior to your divorce or legal separation, then you should still be entitled to continued coverage under COBRA. However, the employer who sponsors the health plan no longer has to pay the premiums for this coverage. A divorced spouse must pay his or her own premiums to pay for COBRA.
The main advantage of applying for COBRA benefits is that it enables a divorced spouse to maintain his or her health insurance policy that their former spouse used to provide. If an employer-based health plan has good coverage then it may be advantageous to continue coverage on the policy. COBRA coverage lasts for 36 months. After the 36-month period expires, then the divorced spouse must obtain their own health insurance benefits. In some narrow circumstances, COBRA can be extended for an additional 18 months.
4. What are my health insurance options available after I am divorced?
There are many things to consider during divorce, and maintaining your health insurance coverage should be a priority. When a marriage ends, there are normally four good options that a divorced spouse can pursue to maintain health insurance coverage:
a. Continue the coverage offered through your ex-spouse's policy: The most common option is to apply for COBRA benefits. The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal mandated law that was designed to protect employees and their families from losing coverage as a direct result of divorce, death, job loss and other life circumstances. It really is a stopgap though because most people simply can't afford them! COBRA is very expensive. If your spouse maintains health insurance coverage through the company, and the company employs at least twenty (20) people, than you may continue your health insurance coverage for up to three years. However, the divorced spouse must pay for all of the premiums. Once you remarry or obtain coverage of your own, under another policy, the COBRA law will then terminate.
b. Get coverage through your current employer: Another option for a divorced spouse is to obtain their own health insurance through their own employer. If you are working and if your employer offers an affordable health then it is highly advisable to assess and compare the cost of COBRA versus the costs of participating in your employer's own health insurance plan.
c. Ask for health insurance coverage as part of the settlement: This may or may not work but it is definitely worth discussing with your lawyer. Many divorced wives focus solely on the amount and the length of their alimony payments. This can be short sighted. I always try to obtain a settlement wherein the ex-husband is legally responsible for paying for his divorced wife's COBRA payments. Alternatively, I try to obtain a settlement wherein the ex-husband is legally responsible for paying for any costs to obtain a new health insurance policy his ex-wife.
The typical monthly cost for COBRA is about $650 to $750 per month. This fee is extremely high and it is quite a shock for most newly divorced wives. Therefore, it is always advisable to try to convince a court to require that a divorced husband must pay for the COBRA costs for the dependent spouse. In my opinion one of the most important parts of any divorce case is to insist that a divorced spouse must have her health insurance continued. In my assessment the continuation of maintaining health insurance is as equally as important as the amount and length of any alimony award.
d. Purchase an individual health benefits plan: In some or most cases, this may be your only or best option. Once again, you will have to pay the monthly fee on your own but you will be surprised as to what is available for the uninsured, ongoing medical condition person, and the under-insured.
There are various plans to choose from even though many want you to still believe there are only two options. Plans that place constraints on access to a hospital and physicians for a lower price and medical plans that offer ready access to hospitals and physicians for a higher price. However, with the healthcare crisis comes another healthcare option and it is called "consumer driven healthcare." One benefit of the consumer driven healthcare alternative is that it puts the relationship back where it needs to be - into the hands of the patient and the physician. There are tons of other benefits though, if you and your children are fairly healthy people and are not in and out of the hospital every week or month for example. The additional benefits can range anywhere from no deductibles, co-pays and waiting periods to being able to have ongoing conditions covered and being able to have all services under one umbrella per say like your ancillary, dental, prescription, vision etc.
A divorced spouse should know exactly how much it will cost him or her to obtain health insurance under a private health plan. This information should be disclosed to the court. The court will take into consideration the costs to obtain monthly health insurance when it determines the amount of spousal support.
5. Is there any time limit for a divorced spouse to apply for COBRA benefits?
Your spouse's employer is required to provide COBRA coverage for you, but only if you notify the health plan administrator within 60 days of becoming divorced. If you don't give the administrator proper notice, then you will not be eligible for COBRA coverage.
6. Can my husband still keep me on his employer's group health insurance plan after we are divorced?
No. Even if your spouse will be providing health insurance for the children, he or she cannot provide coverage for you through the employer's group plan, because you're no longer a member of his or her family. If your spouse has been providing coverage for you, and if your spouse's employer has more than 20 employees, you'll want to explore coverage under COBRA. COBRA is available for 36 months after divorce, and the coverage is equivalent to the coverage available to your spouse. Under certain narrow circumstances, a divorced spouse can apply to have COBRA continued for an additional 18 months.
7. What are the major problems with COBRA?
There are two problems with obtaining COBRA insurance coverage. The first is the cost of the coverage. COBRA coverage is considerably more expensive than the coverage available from most employers, because you'll have to pay 102% of the premium. The average price for the monthly COBRA premium ranges from $650 to $750 per month.
The second problem is the risk of becoming uninsurable. COBRA coverage will end by its own terms within 36 months after your divorce is effective. What happens if you're stricken with heart disease or cancer during that 36 months? You would then face the unpleasant prospect of searching for new medical insurance at the end of the 36 months with a most unappealing medical history.
8. Is there any possible way wherein I can "beat the system" and get divorced, but still stay on my ex-husband's health insurance policy?
The only possible way for a divorced spouse to remain on their husband's health insurance policy is to obtain a legal separation, or a divorce from bed and board. There really is no formal proceeding to have a legal separation in New Jersey. There is an outdated legal proceeding called a divorce from bed and board that is similar to a legal separation. Basically, a divorce from bed and board is a legal proceeding that is not really a divorce, but it is more than a legal separation. A divorce from bed and board is also called a limited divorce. Basically, a divorce from bed and board was very popular in the 50's and 60's. Many people believed that getting a divorce was a mortal sin, and that they would go straight to hell. These kinds of beliefs were especially prevalent for people of the Catholic faith.
To address these concerns the courts developed a legal proceeding called a divorce from bed and board. In this type of legal proceeding, the parties are economically divorced, but they are still legally married. The parties will receive a judgment that equitably distributes their assets, support awards will be issued, and any marital debts will be apportioned. A limited divorce has all of the same attributes of an absolute divorce except the parties can't remarry.
The benefits of having a divorce from bed and board are that a dependent spouse can still receive health insurance benefits from the other spouse's health plan because there is not a complete divorce. In my experience, retaining the health benefits are the primary reason why a couple may choose to pursue a divorce from bed and board. In many cases, it is impossible for a divorced wife to obtain affordable health insurance benefits after a divorce. Therefore, if a wife has a health condition, then it is imperative that she is able to maintain adequate health insurance. In my assessment, if there is a long term marriage, then a divorce from bed and board can enable a wife to retain her health insurance coverage. If a spouse is still able to stay on the health insurance after a separation, then this can assist the family from paying oppressive COBRA payments, or from paying for a new highly priced health insurance policy.
In summary, a divorce from bed and board is a legal proceeding that is essentially half way between a legal separation and a full divorce. This type of legal proceeding should only be pursued if the parties are still acting civil to each other. Moreover, this type of legal proceeding is really only applicable to a very long term marriage, wherein no person has any intentions to remarry.
The drawbacks of a divorce from bed and board are that the parties are still technically married. Neither spouse can remarry if there is only a divorce from bed and board. Therefore, it may be impossible for the spouses to date other people. Even though the spouses are economically divorced, they still are technically married to each other. It is no fun to date a married person no matter how you look at! Moreover, many spouses still may attempt to exert control over the other spouse because they are still technically married.
Finally, if a divorce from bed board is obtained, then either spouse is permitted to file an application with the court to convert it to an absolute divorce. An absolute divorce is a full divorce and both parties are free to remarry. Unfortunately, if an absolute divorce is entered, then the dependent spouse will then lose his or her health benefits. Once the family unit is officially terminated, then any employer-based health plan is no longer legally obligated to provide coverage to a dependent spouse. If there is only a divorce from bed and board this is an ideal maneuver to avoid this potential catastrophe.
In summary, understanding the full range of complexities of a divorce from bed and board can be very complicated. It may take several meetings with an experienced lawyer to fully understand the pros and cons that a limited divorce has to offer. However, if a dependent spouse suffers from a severe medical condition(s), and if maintaining health insurance is a "life or death" issue, then it is worth serious consideration.
Information provided by:
Theodore Sliwinski, Esq. located at
http://www.divorcecenterofnj.com
1. How will my divorce impact my health insurance benefits?
A divorce causes major issues with health insurance benefits. Many families have an employer provided and/or paid for health insurance benefits that cover health insurance for the entire family. After a divorce, the spouse with the family health insurance coverage can no longer cover the other dependent spouse. They are no longer "family" members who can take advantage of the employer-based health insurance policy. There is no way around this unfortunate reality. If a couple gets divorced, then the dependent spouse will lose his or her health insurance coverage. If both parties do not have adequate health insurance benefits available, and if the cost of obtaining COBRA benefits or an alternative health insurance policy is too costly, then there is one way to continue benefits without additional cost. That way is to enter into a separation agreement, but to delay filing for divorce. That way, the parties actually do remain married and they can stay on the same health insurance plan even though they are separated. The parties can consent to waiting for one, two or more years before either spouse files for a divorce. While the parties will remain married, their property, custody, and support issues will be addressed in their separation agreement. Under some circumstances, this is an optimal resolution. Another option for divorcing couples is for the dependent spouse to obtain COBRA coverage. COBRA is a federal law which mandates that a person covered under a health insurance policy be given the right to continue that coverage, at their own cost, for a set time period if certain requirements exist. For example, if you obtain a divorce and if your spouse had family health insurance coverage through his employer, then the employer would have to provide COBRA coverage for you after the divorce. That COBRA coverage would require that you have the same health insurance policy, although your coverage would now be individual and not family. You would have to pay the employer's cost for that individual policy.
2. What are the different types of medical insurance available?
a. Employer-provided medical insurance - The best source for medical insurance today is your employer-provided plan because its cost is most likely subsidized by your employer. These medical plans are generally one of four types: indemnity plans, service provider plans, preferred provider plans or health maintenance organizations.
b. Individual medical insurance - Medical insurance policies are available directly from insurance companies for individuals. The advantage of this type of policy is that you may shop for the type of benefits you want. The disadvantage is you have to pay the whole cost of the policy premiums.
c. Medicare - Medicare provides mandatory basic hospitalization benefits for all U.S. citizens over the age of 65 under Part A coverage. Part B coverage is a voluntary program that provides coverage for doctor bills at a monthly cost to you. Medicare typically covers only half of the average senior citizen's health care bills. You can supplement it with Medigap insurance.
3. What is COBRA coverage?
COBRA is the federal law that entitles you to continued coverage in an employer's group health plan, even if you've become ineligible to participate because of job loss or divorce. If you were covered under your spouse's employer-sponsored health plan policy prior to your divorce or legal separation, then you should still be entitled to continued coverage under COBRA. However, the employer who sponsors the health plan no longer has to pay the premiums for this coverage. A divorced spouse must pay his or her own premiums to pay for COBRA.
The main advantage of applying for COBRA benefits is that it enables a divorced spouse to maintain his or her health insurance policy that their former spouse used to provide. If an employer-based health plan has good coverage then it may be advantageous to continue coverage on the policy. COBRA coverage lasts for 36 months. After the 36-month period expires, then the divorced spouse must obtain their own health insurance benefits. In some narrow circumstances, COBRA can be extended for an additional 18 months.
4. What are my health insurance options available after I am divorced?
There are many things to consider during divorce, and maintaining your health insurance coverage should be a priority. When a marriage ends, there are normally four good options that a divorced spouse can pursue to maintain health insurance coverage:
a. Continue the coverage offered through your ex-spouse's policy: The most common option is to apply for COBRA benefits. The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal mandated law that was designed to protect employees and their families from losing coverage as a direct result of divorce, death, job loss and other life circumstances. It really is a stopgap though because most people simply can't afford them! COBRA is very expensive. If your spouse maintains health insurance coverage through the company, and the company employs at least twenty (20) people, than you may continue your health insurance coverage for up to three years. However, the divorced spouse must pay for all of the premiums. Once you remarry or obtain coverage of your own, under another policy, the COBRA law will then terminate.
b. Get coverage through your current employer: Another option for a divorced spouse is to obtain their own health insurance through their own employer. If you are working and if your employer offers an affordable health then it is highly advisable to assess and compare the cost of COBRA versus the costs of participating in your employer's own health insurance plan.
c. Ask for health insurance coverage as part of the settlement: This may or may not work but it is definitely worth discussing with your lawyer. Many divorced wives focus solely on the amount and the length of their alimony payments. This can be short sighted. I always try to obtain a settlement wherein the ex-husband is legally responsible for paying for his divorced wife's COBRA payments. Alternatively, I try to obtain a settlement wherein the ex-husband is legally responsible for paying for any costs to obtain a new health insurance policy his ex-wife.
The typical monthly cost for COBRA is about $650 to $750 per month. This fee is extremely high and it is quite a shock for most newly divorced wives. Therefore, it is always advisable to try to convince a court to require that a divorced husband must pay for the COBRA costs for the dependent spouse. In my opinion one of the most important parts of any divorce case is to insist that a divorced spouse must have her health insurance continued. In my assessment the continuation of maintaining health insurance is as equally as important as the amount and length of any alimony award.
d. Purchase an individual health benefits plan: In some or most cases, this may be your only or best option. Once again, you will have to pay the monthly fee on your own but you will be surprised as to what is available for the uninsured, ongoing medical condition person, and the under-insured.
There are various plans to choose from even though many want you to still believe there are only two options. Plans that place constraints on access to a hospital and physicians for a lower price and medical plans that offer ready access to hospitals and physicians for a higher price. However, with the healthcare crisis comes another healthcare option and it is called "consumer driven healthcare." One benefit of the consumer driven healthcare alternative is that it puts the relationship back where it needs to be - into the hands of the patient and the physician. There are tons of other benefits though, if you and your children are fairly healthy people and are not in and out of the hospital every week or month for example. The additional benefits can range anywhere from no deductibles, co-pays and waiting periods to being able to have ongoing conditions covered and being able to have all services under one umbrella per say like your ancillary, dental, prescription, vision etc.
A divorced spouse should know exactly how much it will cost him or her to obtain health insurance under a private health plan. This information should be disclosed to the court. The court will take into consideration the costs to obtain monthly health insurance when it determines the amount of spousal support.
5. Is there any time limit for a divorced spouse to apply for COBRA benefits?
Your spouse's employer is required to provide COBRA coverage for you, but only if you notify the health plan administrator within 60 days of becoming divorced. If you don't give the administrator proper notice, then you will not be eligible for COBRA coverage.
6. Can my husband still keep me on his employer's group health insurance plan after we are divorced?
No. Even if your spouse will be providing health insurance for the children, he or she cannot provide coverage for you through the employer's group plan, because you're no longer a member of his or her family. If your spouse has been providing coverage for you, and if your spouse's employer has more than 20 employees, you'll want to explore coverage under COBRA. COBRA is available for 36 months after divorce, and the coverage is equivalent to the coverage available to your spouse. Under certain narrow circumstances, a divorced spouse can apply to have COBRA continued for an additional 18 months.
7. What are the major problems with COBRA?
There are two problems with obtaining COBRA insurance coverage. The first is the cost of the coverage. COBRA coverage is considerably more expensive than the coverage available from most employers, because you'll have to pay 102% of the premium. The average price for the monthly COBRA premium ranges from $650 to $750 per month.
The second problem is the risk of becoming uninsurable. COBRA coverage will end by its own terms within 36 months after your divorce is effective. What happens if you're stricken with heart disease or cancer during that 36 months? You would then face the unpleasant prospect of searching for new medical insurance at the end of the 36 months with a most unappealing medical history.
8. Is there any possible way wherein I can "beat the system" and get divorced, but still stay on my ex-husband's health insurance policy?
The only possible way for a divorced spouse to remain on their husband's health insurance policy is to obtain a legal separation, or a divorce from bed and board. There really is no formal proceeding to have a legal separation in New Jersey. There is an outdated legal proceeding called a divorce from bed and board that is similar to a legal separation. Basically, a divorce from bed and board is a legal proceeding that is not really a divorce, but it is more than a legal separation. A divorce from bed and board is also called a limited divorce. Basically, a divorce from bed and board was very popular in the 50's and 60's. Many people believed that getting a divorce was a mortal sin, and that they would go straight to hell. These kinds of beliefs were especially prevalent for people of the Catholic faith.
To address these concerns the courts developed a legal proceeding called a divorce from bed and board. In this type of legal proceeding, the parties are economically divorced, but they are still legally married. The parties will receive a judgment that equitably distributes their assets, support awards will be issued, and any marital debts will be apportioned. A limited divorce has all of the same attributes of an absolute divorce except the parties can't remarry.
The benefits of having a divorce from bed and board are that a dependent spouse can still receive health insurance benefits from the other spouse's health plan because there is not a complete divorce. In my experience, retaining the health benefits are the primary reason why a couple may choose to pursue a divorce from bed and board. In many cases, it is impossible for a divorced wife to obtain affordable health insurance benefits after a divorce. Therefore, if a wife has a health condition, then it is imperative that she is able to maintain adequate health insurance. In my assessment, if there is a long term marriage, then a divorce from bed and board can enable a wife to retain her health insurance coverage. If a spouse is still able to stay on the health insurance after a separation, then this can assist the family from paying oppressive COBRA payments, or from paying for a new highly priced health insurance policy.
In summary, a divorce from bed and board is a legal proceeding that is essentially half way between a legal separation and a full divorce. This type of legal proceeding should only be pursued if the parties are still acting civil to each other. Moreover, this type of legal proceeding is really only applicable to a very long term marriage, wherein no person has any intentions to remarry.
The drawbacks of a divorce from bed and board are that the parties are still technically married. Neither spouse can remarry if there is only a divorce from bed and board. Therefore, it may be impossible for the spouses to date other people. Even though the spouses are economically divorced, they still are technically married to each other. It is no fun to date a married person no matter how you look at! Moreover, many spouses still may attempt to exert control over the other spouse because they are still technically married.
Finally, if a divorce from bed board is obtained, then either spouse is permitted to file an application with the court to convert it to an absolute divorce. An absolute divorce is a full divorce and both parties are free to remarry. Unfortunately, if an absolute divorce is entered, then the dependent spouse will then lose his or her health benefits. Once the family unit is officially terminated, then any employer-based health plan is no longer legally obligated to provide coverage to a dependent spouse. If there is only a divorce from bed and board this is an ideal maneuver to avoid this potential catastrophe.
In summary, understanding the full range of complexities of a divorce from bed and board can be very complicated. It may take several meetings with an experienced lawyer to fully understand the pros and cons that a limited divorce has to offer. However, if a dependent spouse suffers from a severe medical condition(s), and if maintaining health insurance is a "life or death" issue, then it is worth serious consideration.
Information provided by:
Theodore Sliwinski, Esq. located at
http://www.divorcecenterofnj.com
Subscribe to:
Posts (Atom)
