Most people are aware that when a couple gets a divorce, they will need to reach a resolution on important issues including the division of marital property and the allocation of parental responsibilities. However, there are many other implications of the divorce process that may not be immediately apparent. One such issue is continued health insurance coverage for a spouse or child.

This issue is of particular relevance now, when many families are struggling with health problems related to COVID-19, or the risk of contracting the coronavirus. If you are concerned about losing access to affordable health care at a time when you need it most, you may have even decided to delay your divorce or pursue a legal separation while remaining legally married. However, it is important to know that if you decide to move forward with your divorce, there are options for maintaining coverage.

The Illinois Spousal Continuation Law

Under Illinois law, if you were covered under your spouse’s employer-sponsored health insurance plan during your marriage, you have the option to continue that coverage after your divorce. In order to do so, you must notify your spouse’s employer within 30 days of the divorce judgment, and once continued coverage is granted, you will also need to pay the full premium throughout the time you remain covered. If you are below the age of 55 at the time of the divorce, continued coverage can extend for a maximum of two years, whereas if you are retired or over the age of 55, coverage can continue up until the point at which you are eligible for Medicare.

If you are currently married but are not happy and wish to end the relationship, there are a few different options. Two of the most common options are legal separation and divorce. Divorce is well-known and very common, ending in the dissolution of the marriage. It also allows a couple to separate and divide up property and assets. Child custody and maintenance may also be worked out in a divorce.

Legal separation is not as well-known. If a couple legally separates, they do not dissolve the marriage, but instead will have a separation agreement. Many of the same issues are addressed, such as child visitation, custody, alimony, or maintenance. However, it does not divide up properties and assets unless both people agree to it ahead of time. Neither spouse is allowed to remarry because the marriage has never been formally dissolved. There are differences in how finances are handled in each option so it is important to evaluate all your options before making a firm decision.

What Is Better About Legal Separation?

Not all marriages will benefit more from legal separation. However, if you wish to take advantage of any of the benefits below, it may be beneficial to legally separate instead of divorce:

Although there are exceptions, most married couples fall under the same insurance plan. What happens, though, if the couple then goes through a divorce? Is each party then responsible for their own insurance, or is there a way to continue coverage on a spouse’s plan? Are there other alternatives for disadvantaged spouses who may not otherwise have insurance? The following offers some advice on how to manage your insurance plans after divorce, including when and how to find new insurance if you will no longer be covered after divorce.

Health Insurance After Divorce

If you were covered under your spouse’s insurance plan during the marriage, you can attempt to maintain coverage under your spouse’s workplace plan through COBRA. Unfortunately, this is rarely a cost effective method for maintaining insurance; you may be better off paying for private health insurance. Alternatively, you can seek insurance through your own employer, the health insurance plan marketplace, or you can apply for Medicare or Medicaid (depending on your age). Note that your children may still be covered under your spouse’s plan, but you may be required to help cover a portion of it.

Divorce causes a significant amount of emotional, mental, and physical stress, especially when a divorce is particularly caustic. With all the items that need to be decided on for a divorce settlement, as well as the uncertainty of the final result of a divorce, it may be difficult to ensure that all of your needs properly addressed. In fact, health insurance coverage is one of the many particulars that ends up getting lost in the middle of a divorce settlement.

Study Sheds Light on Loss of Coverage for Many Women Post-Divorce

A recent study, conducted by the University of Michigan and published in the Journal of Health and Social Behavior, evaluated women between the ages of 26 and 64 and found that overall, women’s insurance coverage dropped and remained low for more than two years after the end of a marriage. Additionally, it was estimated that nationwide, 115,000 women annually lose their private health insurance coverage as a result of a divorce. This is a significant number of women who are living post-divorce life without the protection that they would have had had they remained married.