Q My husband and I are going through the divorce process, and have been for about six months. We have a mediation coming up. To prepare, I sat down with a friend of mine to go through her divorce settlement.
Last night, my friend and I were discussing insurance issues. I have been married for more than 20 years, and we are both 45 years old, and in good health. We have two kids, one in college, one a sophomore at Pine Crest. I have not worked during the marriage. My husband makes good money. We have always had health insurance and life insurance, through his employment with a public company.
Micheal Gora
Can you tell me what kind of insurance protection I would get if the case went to court? Would the judge have to give the children and me the same health insurance we have now? Would he give me life insurance to pay for alimony and child support, in the case of my husband’s premature death?
A. Let’s discuss the life insurance first. Florida appellate court decisions have made it much harder for a trial court to award life insurance as security for alimony or child support in the last few years. To be sustained on appeal an award of life insurance must meet three criteria:
1. There must be “special circumstances” requiring the insurance. That seems to mean that there has to be some special risk to your husband’s health, or, perhaps, some special condition that would prohibit you from ever earning your own support, or being able to support your minor child.
2. The trial court must find that the insurance is affordable, after making the distribution of assets, and deducting the cost of the alimony and child support from your husband’s earnings. Non-marital assets of both parties must be considered.
3. The court must make specific findings as to whether all of the proceeds of existing insurance are necessary to secure the support, or the amount of a new policy, and how the insurance is to be distributed; directly and all at once , or through a trustee, in monthly payments.
That being said, it is quite common to be able to negotiate life insurance coverage during mediation, especially if you and your husband already have life insurance. The life insurance to secure alimony would be based upon the amount of alimony that you receive and your life expectancy, or, perhaps the number of years left before your husband is of retirement age, or the number of years left on your term insurance policy already in place.
That insurance requirement would be eliminated if you lost your alimony as the result of a re-marriage, or later modification of alimony. Insurance to secure child support would be calculated based upon the current child support, and incorporate a declining balance to take into consideration your minor child’s age and balance due.
You have also asked about health insurance coverage. The court will probably require your husband to continue to supply health insurance for your minor child, and, perhaps, for your children while they are in college or to the age now provided in the new health care law.
Federal law does not allow you to continue on your husband’s group health plan indefinitely, but creates, through a process referred to as COBRA, the ability to maintain your present coverage at an expense close to what your husband’s company is paying to cover you. You can choose to go with that plan or purchase your own. The cost of your insurance will be considered as one of your needs by covered alimony.
Michael H. Gora has been certified by the Board of Specialization of the Florida Bar as a specialist in family and matrimonial law, and is a partner with Shapiro Blasi Wasserman & Gora P.A. in Boca Raton.