Did you know that about 80% of health insurance companies no longer allow a spouse to stay on a health insurance policy once they discover the couple is legally separated?
Not many people, or even attorneys have heard of a “Suspended Divorce” but with all the changes in healthcare, people need to be informed. The type of “separation” arrangement you choose can make a big difference in your health. Click through to read the chart that spells out the differences between a Suspended Divorce and Legal Separation.
This is an alternative to doing a legal separation. Basically, if there is some reason that you need to remain “married,” yet want to complete the divorce process, this is a good choice for you. The chart below explains the differences between the two.
NOTE: If you are considering a legal separation, contact your insurance carrier to for coverage specific to you.
Legal Separation |
Suspended Divorce |
|---|---|
| Marital Status You are legally separated. |
Marital Status You are legally married. |
| Marital Separation Agreement (MSA) You have filed a Marital Separation Agreement (MSA) with the court that defines the important decisions the two of you have made (how the two of you will separate finances/debt, whether spousal support will be paid and coordinate parenting plan.) |
Marital Separation Agreement (MSA) For all intensive purposes you are married. This includes all things legal. The difference is that you have filed a Marital Separation Agreement (MSA) with the court that defines the important decisions the two of you have made (how the two of you will separate finances/debt, whether spousal support will be paid and coordinate parenting plan.) Eventually you will be divorced but have chosen to either leave the date of the divorce empty (to be determined later) or suspend it to a date in the future that meets your needs. This could be the day you retire, the day all the kids graduate from high school, or any date. |
| Taxes Once the divorce is final, you will file as single filing separately or head of household. As the divorce is still pending, you can file either married or married but filing separately. |
Taxes You will file as either married or married but filing separately. |
| Cost to Legally Separate $2750-$4500, plus 2 Court filing fees of $435 each. |
Cost to do a Suspended Divorce $2750-$4500, plus 2 Court filing fees of $435 each. |
| Cost if you Choose to Divorce Later If you choose to divorce later on, the Court will require you to open a new case file for “divorce” and to pay two additional filing fees of $435 each. |
Cost if you Choose to Divorce Later If you choose to divorce later on, the cost will be about $40 more for a filing fee. |
| Marital Reconciliation Lower rate of marital reconciliation. |
Marital Reconciliation Higher rate of marital reconciliation. |
| Health Insurance Most plans will not allow you to stay on your spouse’s health insurance. |
Health Insurance Will be allowed to stay on your spouse’s health insurance plan. |