Massachusetts Divorce Affects Insurance and Social Security Benefits

December 14, 2012

Massachusetts Divorce Affects Insurance and Social Security Benefits

Divorce has far-reaching effects on many parts of people's lives, including emotional, social and financial aspects. People may not realize all of the changes that result because of a divorce, such as insurance and Social Security benefits. People should understand how divorce in Massachusetts impacts health insurance, life insurance and Social Security benefits so they are not later caught unaware.

Health Insurance

Massachusetts law allows an ex-spouse to remain on an insured spouse's private employer-sponsored health insurance plan even after divorce. The ex-spouse remains eligible for coverage without an additional premium payment as long as the insured spouse is part of the plan. The coverage ends if the ex-spouse remarries. If the insured spouse remarries, the ex-spouse may still be eligible for an additional premium.

However, federal law preempts state law for employers who provide self-insured plans for their employees, meaning that the state's laws about maintaining eligibility for health insurance after divorce do not apply. Under a self-insured plan, the employer bears the financial risk for medical claims by employees. Some self-insured plans are administered by HMOs, however, so it is critical for a person to investigate whether a spouse's health insurance plan is self-insured by the employer and not just assume the employer purchased coverage from another company.

Ex-spouses of those insured under employer-provided self-insured plans may still be able to maintain coverage under federal COBRA laws for up to 36 months. However, the ex-spouse will have to pay the entire premium. Federal COBRA law applies to companies with 20 or more employees. Massachusetts also has a "mini-COBRA" law for companies with two-to-19 employees, allowing those who do not qualify to purchase health care coverage under federal law to continue their health insurance for a limited time.

Life Insurance

Life insurance coverage after divorce can be complicated. Spouses can remove each other as beneficiaries from life insurance policies before the commencement of divorce proceedings. During divorce proceedings, Massachusetts courts issue an automatic temporary restraining order preventing spouses from transferring assets or making such changes during the pendency of the action.

After the divorce, one spouse may be required to keep a life insurance policy naming the other spouse or the children as beneficiaries as a supplement to alimony or child support obligations. Most divorce decrees that include a life insurance provision include a clause that presumes that any policy purchased after the divorce is done so to comply with the order.

Social Security

In some cases, people can still collect some of their former spouses Social Security benefits. In order to qualify a person must:
-Have been married for at least 10 years
-Be at least 62 years old, or 60 years old if the former spouse is deceased
-Have lower Social Security benefits than the former spouse

Dealing with all the ramifications of divorce can get complicated and may seem like an overwhelming task. If you are going through a divorce, make sure to seek the aid of a seasoned divorce attorney who can help guide you through the process and look out for your best interests.

Article provided by The Law Office Of Kevin P. O'Malley P.C.
Visit us at http://www.attorneyomalley.com