• 25
  • December
    2011

Some divorcing couples in New York and elsewhere throughout the country will go to considerable lengths to cause each other misery. While most people know to keep an eye on their bank accounts during a divorce, divorcing spouses also need to protect themselves from insurance revenge.

Unfortunately, there are numerous ways divorcing spouses can inconvenience each other; from unexpectedly cancelling a health insurance policy to deliberately damaging the family home.

During the divorce process, it is important to pay attention to the beneficiaries on any life insurance policies, especially if you have young children. Couples can make each other the irrevocable beneficiaries of life insurance policies, so they can be certain their children will be taken care of if something happens to one or both parents.

It is also recommended to keep a watchful eye on your license plates and car insurance. In some states, a disgruntled former spouse could steal your license plates, turn the title and registration in to the Department of Motor Vehicles and then use the DMV records to cancel your car insurance policy. Being pulled over by a police officer because your car does not have a license plate, and then learning your vehicle is uninsured and unregistered, could be a one-way trip to jail.

Make sure your divorce agreement requires your ex-spouse to maintain health and life insurance policies on dependent children. A Brooklyn, New York, insurance agent says he had one client who learned the hard way when her former husband had dropped the rest of the family from his health plan. She took her son to the emergency room. When she got there, the hospital told her he was uninsured.

If you are going through a contentious divorce, make certain to change your locks and alarm codes. You should also keep an eye on your homeowner's insurance policies. The Brooklyn insurance agent says he had a client whose ex-husband allegedly put a nail through a water pipe in the basement of her home. When the nail worked its way out a few days later, it flooded the basement. Because the couple had a similar claim a few years earlier, the insurance company dropped her when it was time to renew the policy.

Yes, divorce can ignite emotions in even the most laid-back of couples. When children are concerned, it is important to keep a level head and keep the kids' best interests in the foreground, a child without healthcare can ultimately cost both parents a lot of money.

Source: Insure.com, "How to protect yourself from 'insurance revenge' during divorce," Lynette Khalfani-Cox, Dec. 12, 2011.