Divorce and Your Health Insurance Options

Divorce may leave you wondering how you will access certain benefits you previously gained through your partner. For example, how will you navigate health insurance without your spousal benefits? Rest assured that you may have several options for securing health insurance after your divorce. 

Exploring your options can help you feel more confident starting the divorce process. Your attorney can also provide valuable advice as you learn to gain financial independence from your spouse. 

Other Options for Seeking Health Insurance

While sharing your spouse’s health insurance benefits may have been convenient during the marriage, this is not your only method of securing health coverage. There are other potential options for health insurance after divorce. 

  • Check with your employer: If you are employed, your employer may offer health insurance benefits. Check with the Human Resources department to understand the insurance options available to you. Divorce counts as a Qualifying Life Event (QLE) for many insurance providers, offering a Special Enrollment Period (SEP) that could allow you to start coverage outside the typical enrollment window. 
  • Explore COBRA coverage: The Consolidated Omnibus Budget Reconciliation Act could allow you to stay on your ex-spouse’s employer-sponsored health insurance for up to 36 months as long as their employer has at least 20 employees. 
  • The Health Insurance Marketplace: If you are not eligible for coverage through an employer, you can explore marketplace insurance, which allows you to purchase coverage directly. Premiums depend on a range of factors, such as your age, health conditions, tobacco use, etc. 

Some couples choose to go through legal separation rather than divorce to maintain benefits like health insurance. While legal separation is not formally recognized in Pennsylvania or New Jersey, it is a lifestyle option to explore if staying on your partner’s health insurance is critical. 

Whose Insurance Will Cover Your Children? 

Divorcing couples also need to consider whose insurance will cover their children. It might make sense for the custodial parent to cover the children through their health insurance plan. This may be different from how you covered them previously. 

The birthday rule dictates which parent’s health insurance acts as primary coverage for the children. It states that the parent whose birthday falls earlier in the year generally uses their insurance as the primary plan for the children. You and your spouse may choose to still follow this method of determining dependent coverage. 

Will There Be a Lapse in Coverage? 

In Pennsylvania, it can be challenging to predict exactly what day your divorce decree will be finalized. It is up to the judge who is overseeing your case.

Setting up insurance to start on the day your shared coverage ends might not be doable. Consider whether there might be a lapse in coverage and whether you want to look for temporary coverage to fill the gap. 

Seek Divorce Assistance From Karen Ann Ulmer, P.C. 

Navigating health insurance after divorce is just one of the many challenges that often arise during this process. Karen Ann Ulmer, P.C., helps divorcees start moving forward. For a confidential consultation, contact us today at (866) 349-4117.

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Out-of-State Spouses and Divorce: Can You File for Divorce From Another State?

It is not uncommon for couples starting the divorce process to live in separate states. Perhaps they have been separated for some time, or one spouse has recently moved to a different state to gain distance from the marriage. However, navigating a divorce when your spouse is out of state might be a bit more complicated than a typical divorce case. 

Can you file for divorce from another state? Here are a few considerations for out-of-state divorce. 

Where Should You File for Divorce?

Divorce cases typically cannot take place in two different states at one time. The spouse who files for divorce will do so in the state that then has jurisdiction over the case. 

Many states have residency laws for filing for divorce. For example, to file for divorce in Pennsylvania, one or both of you must have resided in the state for six months or longer. These requirements might dictate who starts the divorce process in your marriage. 

There could also be advantages to filing in a specific state. Some states, Pennsylvania included, allow for no-fault divorce, meaning you do not need to prove grounds for a dissolution of marriage. Review the divorce laws in both states and consider which would potentially allow for a more streamlined divorce process.  

Do You Both Need Local Attorneys?

Can you file for divorce from another state? You can, but one spouse may need to travel to the other spouse’s state for in-person court appearances. You may wonder whether this means you need to hire an attorney in the state of filing or in your current state of residence. 

There are potential advantages to both options. Hiring an attorney in your area makes it easier to meet with them and strategize about the case. However, hiring an attorney in the filing state ensures that they have the proper licenses to practice in that state and understand applicable divorce laws. 

A good out-of-state attorney will help you manage communication, differing time zones, and other potential challenges.

Service of Process Across State Lines

Filing for divorce requires you to officially serve your spouse with the divorce papers. If your spouse resides in a different state, you can hire a process server in their area to complete the delivery. 

Process servers often work with nationwide networks of professionals to deliver legal documents across the country. They can serve your spouse according to applicable state laws and even help you track them down, should your spouse be unreachable. 

Developing Parenting Schedules Across State Lines

Finally, if you and your spouse share children, you will need to consider how parenting time will work if you live in different states. You may need to use mediation to resolve disagreements or allow the judge to determine a parenting schedule for you based on all relevant factors. 

Karen Ann Ulmer, P.C., represents divorcees in Pennsylvania and New Jersey. We can help you file for divorce from another state and navigate any complexities that arise. 

Contact us at (866) 349-4117 for a confidential consultation. 

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Entrepreneurs Navigating Divorce: Tips for an Effective Divorce Process

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Dividing marital assets can be challenging in any divorce case. But if you are a business owner, you may be concerned about what percentage of the business your spouse might lay claim to. 

Entrepreneurs navigating divorce need experienced legal counsel to advocate for their rights. Here is what you need to know through this process. 

Is Your Business a Marital Asset? 

Pennsylvania law distinguishes between marital and separate property in a divorce. Marital property includes any assets and debts acquired during the marriage. The court would seek to divide these assets using an equitable distribution policy. 

Your business may be considered a marital asset if you launched it during the marriage. Even if you started it before the marriage, its increase in valuation during the time you were married may be considered a marital asset. 

If you have a prenuptial agreement stating that your business is your property alone, you may not need to be concerned. Otherwise, it will likely be subject to at least partial division. 

Protecting Your Business With No Prenup in Place 

Your attorney will help you strategize ways to protect your business in the absence of a prenuptial agreement. You may consider options such as:

  • Structured buy-outs, in which you buy out your spouse’s interest in the business. This would allow you to retain ownership of the business while compensating your spouse for their share of the business value.
  • Trading assets, or allowing your spouse to keep assets like retirement accounts or home equity in exchange for you keeping the business  

Business Valuation and Tax Implications 

You will need to understand the value of your business when navigating a divorce as an entrepreneur. Several valuation methods are common for this purpose. You might calculate the value of the business’s tangible and intangible assets, estimate its ability to generate earnings or cash flow in the future, or compare it to other, similar companies in the industry that have been sold recently. 

For your divorce, you will need to trace the revenue you received from the business and separate it from personal assets. This can help you avoid commingling your business with other marital assets and potentially losing more of its value in the divorce than you otherwise would. 

Also, consider the potential capital gains or other tax consequences you might face from dividing business interests. Working with forensic accountants and tax professionals can help you approach this process strategically. 

Planning for the Long-Term Potential of Your Business

Courts often consider future earning potential when determining the division of assets in a divorce. If your business is in a position to grow significantly in future years, the court may factor this into its valuation. 

Your attorney can help you address growth projections fairly and accurately during divorce proceedings. 

Going through a divorce as an entrepreneur can be complicated, especially if you have multiple businesses. Our attorneys at Karen Ann Ulmer, P.C., can advocate for your rights during this process. 

Contact us today at (866) 349-4117 for a confidential consultation.

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Seeking Spousal Support for Stay-at-Home Moms

Going through a divorce as a stay-at-home mom can be stress-inducing. How will you afford to stay home and care for your kids without your partner’s income supporting the family? 

Stay-at-home moms often qualify for spousal support or alimony in Bucks County divorce cases. But how much alimony can a stay-at-home mom receive, and how long does this benefit last? Here is what you need to know. 

How Long Do Alimony Payments Continue for Stay-at-Home Parents? 

In Pennsylvania, the court determines the amount and duration of alimony awarded to a stay-at-home parent on a case-by-case basis. A judge would consider the receiving spouse’s financial need and income potential, among many other factors.

However, alimony is often awarded for just three years, which can place financial hardship on stay-at-home parents and seem unfair. Working with an experienced divorce attorney can help you support your need for alimony and seek a fair payment duration. 

How Stay-at-Home Parents Can Prove a Need for Spousal Support

How much alimony you can receive as a stay-at-home mom depends on your financial needs, among other factors. Your divorce attorney can help you support a need for sufficient alimony by presenting a loss of income potential. 

Perhaps you left your career to stay home with the children. Or maybe you never started a career because you had kids at a young age. Your role as a stay-at-home parent can significantly affect your earning potential for some time. You may face challenges finding gainful employment, or you may be unable to work outside the home due to your role as your children’s caretaker. 

Your attorney can help you quantify the value of the care you provide for your children and factor in your loss of income potential to determine a fair spousal support amount. Often, the goal of spousal support is to help the receiving partner maintain a similar standard of living while they pursue financial independence. 

Other Options for Stay-at-Home Parents Facing Financial Dependency in a Divorce

While some marriages lead to a need for permanent spousal support in divorce, the court often prefers to award this benefit only for the amount of time necessary for the recipient to successfully reenter the workforce. Creating a plan for reentry can help you feel more confident facing the financial changes that arise during divorce. 

You might consider:

  • Taking online classes to work toward a degree
  • Seeking career coaching
  • Being open to different types of work that may allow for flexibility with childcare
  • Sharing child custody with your spouse to give you the opportunity to work part-time

In the divorce, you might request that the judge award you more marital assets to help make up for your financial needs. Taking a lump sum in the divorce settlement may sometimes be a good idea to give you a financial cushion. 

Seek Guidance and Support From a Divorce Attorney

At Karen Ann Ulmer, P.C., we often represent stay-at-home parents during the divorce process. We can help you understand how much alimony you might receive and advocate for your rights and interests throughout your divorce case. 

Contact us today at (866) 349-4117 for a confidential consultation.

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