Must a Husband in a Divorce Pay for His Wife's Health Insurance?

When dividing finances in a divorce, the court takes into consideration the circumstances, needs and abilities of each spouse. If one spouse needs assistance in paying for health insurance after a divorce takes place, she can ask the court to include provisions for insurance premiums in her divorce settlement.

Divorce and Health Insurance

• Many couples participate in the group health insurance provided by one spouse's employer. If the couple divorces, the spouse not employed by the company that offers the group policy loses her health insurance coverage unless she is able to afford COBRA premiums.

COBRA

• After a divorce, the spouse left without insurance coverage may have the opportunity to keep her current premium through a provision in the Consolidated Omnibus Budget Reconciliation Act (COBRA). This allows her to keep her insurance for 36 months after the divorce. The cost of COBRA coverage can be very high, as it no longer reflects the employer's benefit contribution and an administrative fee of up to two percent can be added to the monthly premiums.

Divorce Settlements

• A spouse who cannot afford to pay for COBRA or other health insurance can ask the court to order the other spouse to pay all or part of her premiums for a period of time after the divorce. Spouses need to talk to their lawyers about incorporating the payment of insurance premiums into their divorce settlement.

Alternatives to COBRA

• Spouses who lose their health insurance coverage in divorce should consider all of their insurance options, even if they can afford to pay COBRA premiums. If the spouse is already working, she should notify her employer's benefits coordinator of her upcoming divorce so that she can enroll in her company's plan. If she isn't working, but finds a job, her new employer may offer health insurance coverage. She may also be able to buy a health insurance policy that costs far less than a COBRA plan through either a private insurer or a government-sponsored insurance pool.

Legal Separation

• Some spouses choose to legally separate as an alternative to divorce so that both partners retain health insurance coverage. However, many health insurance companies treat separated couples as if they were divorced, and terminate the coverage of the spouse who doesn't hold the policy. Separating couples and their lawyers should clarify the health insurance company's position on legal separation before assuming that both spouses are still covered under the plan.