Insurance is among the many financial considerations you will have to make when going through a divorce


As you and your soon-to-be ex reallocate personal property and assets, it is important to make the necessary adjustments to all of your insurance policies to ensure you have the proper protections in place. 

Auto Insurance

You will need to separate your auto insurance policies if you and your spouse will be living in separate residences following your divorce. Let your insurance broker know as soon as possible when any of the following changes occur:

  • A change in your vehicle’s ownership
  • A change in your address
  • A named operator will no longer be driving the vehicle
  • A named operator moves to a different address than you

If your spouse will continue to pay for your insurance after the divorce, make sure your insurance company has your contact information on file so that you are notified if payments are no longer being made on your behalf.

Homeowners or Renters Insurance

If you move out of the family home into a rental property, you can still keep all your possessions protected with a renters insurance policy. On the other hand, if your spouse leaves the family home and you stay, you may no longer need coverage for certain items your spouse took to his or her new residence. Regardless of your situation, let your insurance broker know about these important changes so you have the coverage you need.

Disability insurance

Alimony and child support payments could be at risk if you or your spouse suffers a disability that hinders your ability to work. Disability insurance may be able to offer some income protection. Talk to your insurance broker about adding this coverage.

Life insurance

If your spouse is named as the primary beneficiary on your life insurance policies, you may want to change this after your divorce. However, there are financial reasons why it would make sense to keep things as-is. For example, if you and your spouse have children together, the policy could help cover child support and college tuition. Talk to your financial advisor to determine whether it is best to leave your ex-spouse listed as a beneficiary.

Divorce is an emotional process. But, it is never a good idea to make financial decisions from an emotional place. Hopefully, these considerations will help you take a step back and make insurance decisions that help keep you, your ex, and your children protected.


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