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New Jersey divorce and the possible insurance fallout

New Jersey women may not realize the effect that a divorce can have on their financial situation. New studies, however, show that this uncertainty could have an effect on their health insurance coverage. Research shows that over 100,000 women per year in this country lose their private health insurance after they have gone through a divorce. Even after two years of being divorced, their overall insurance coverage remains at a lower level than before.

Researchers analyzed years of data on women in their mid-20s to mid-60s. That information revealed that divorce has a substantial impact on many women's coverage. About a million divorces occur per year in this country, and many of those women are actually insured through their spouses. Many women involved can't keep their insurance because after a divorce they no longer qualify as a dependent. Others find that after the split, they can't afford the premiums for a new insurance policy.

Although some have their own employer-based coverage and could feasibly use their plans after the divorce, many find their financial status isn't what it used to be and can't afford to pay their share of the coverage. This can be devastating to many women who suffer an injury or illness that requires insurance coverage. Although children will normally stay covered under a spouse's insurance, provisions for ex-spouses often don't exist once the divorce is finalized.

Financial difficulties after a New Jersey divorce are not uncommon. This is why the settlement portion of the divorce is so important. Taking a critical look at one's finances can help people examine their spending habits and see what needs to change after the split becomes finalized. Ensuring a fair and equitable settlement can help offset some of these financial difficulties so women are able to get the money they need for insurance coverage.

Source: USNews.com, "Divorce Puts Women at Risk of Losing Health Insurance, Study Finds," Nov. 16, 2012

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