Am I Covered? Divorce and Health Insurance

AvatarHeather Collier, Principal

‘Tis the season for many employers open enrollment period for health insurance coverage and other employment-related benefits. Choices abound. But what if you and your spouse are divorcing and you are on their health insurance? The plot thickens.

  • How long after divorce will you be covered? Do you have any options to continue coverage through your spouse’s plan? Who will provide health insurance for your children? And who pays? Is your ability to continue coverage linked to any other decision you make or rights you derive from the divorce?  Here are the basics: * If you are covered on your spouse’s health insurance at the time of separation, your spouse can continue to cover you until the entry of a judgment of absolute divorce.
  • Divorce is a terminating event for health insurance coverage. If you were on your spouses’ coverage, in most cases, you can elect to continue coverage for a specific period through the same health insurance plan. There is typically a 60-day grace period for you to decide to elect continuation coverage (if available), seek coverage on the health insurance Marketplace, or seek coverage through your employer’s plan if you are employed and they offer benefits.
  • There are differences in the continuation coverage benefits offered based on the employer and whether the employer falls under federal or state laws. With exceptions, private sector companies with 20 or more employees fall under federal COBRA, while companies with less than 20 employees fall under state based continuation coverage laws. The Federal government provides continuation coverage through the Federal Employee Health Benefits program (FEHB).
  • COBRA allows continuation coverage for 36 months post-divorce. State law based continuation coverage periods vary.
  • FEHB also allows temporary continuation coverage (TCC) for 36 months post-divorce. However, former spouses of federal employees insured under FEHB during the marriage may also be eligible for extended continuation coverage beyond 36 months, called Spouse Equity Coverage. This is available if the former spouse receives a share of the federal employees FERS or CSRS pension benefit and/or is designated as a survivor beneficiary of the federal employees FERS or CSRS plan based on the division of property in the divorce.
  • If you elect continuation coverage under the applicable laws, you will pay 100% of the premium cost (without subsidy) and a percentage of the premium as an administrative fee. Therefore, it may not be the most cost effective option, particularly if you are eligible for insurance through your own employer.  If you are seeking spousal support and need continuation coverage, you will need to factor the cost into your expenses and ultimately your support request.  If you are eligible for insurance through you own employer, the divorce will qualify you to enroll in your employer’s plan even if it is outside the normal open enrollment period.
  • Even though your former spouse cannot continue carrying you on their health insurance policy post-divorce, they can continue to cover your children. The cost of the premium for the children’s health insurance coverage is factored into the calculation of child support. If your former spouse has other health related benefits like dental or vision insurance, they can also cover your children on those policies. If you or your former spouse have access to other health related benefits, e.g. a Flex Spending Account (FSA) or a Health Savings Account (HSA), confirm before the divorce what policies and rules apply to using those funds so you can determine whether that impacts who provides insurance coverage for the children, who claims them as dependents on tax returns, etc. and negotiate accordingly.

If health insurance coverage is a concern for you post-divorce, it is imperative you obtain information, informally or formally, from your spouse and/or their employer about the availability of continuation coverage, the cost, and the period of time continuation coverage will be available to you because of the divorce.  Do not wait – this information may influence the resolution of other parts of your divorce case such as spousal support and, if you have minor children, child support, and income tax related benefits.

My Top 5 New Year’s Resolutions for Those Going Through Divorce

AvatarErik Arena, Principal

In keeping with the time-honored New Year’s tradition of reflecting on the year past and making resolutions for the coming year, I’ve put together a list of my top-five resolutions for divorcing clients for 2021.

2020 was a year unlike few others. The challenges were several. The landscape was ever-changing. But you persisted.

How can you make 2021 a little bit “jollier” for yourself.

1. Adjust Expectations and Prioritize

2020 didn’t go as planned for many. New challenges surfaced, for which easy solutions were unavailable. The crisis then persisted and persists to this day. Personal goals went unmet, but not for lack of will or desire. You expended the same effort and energy with fewer results. It was a humbling year.

Those realities should guide your-self assessment of 2020. Be forgiving in your assessment of 2020 successes and failures, and don’t view them in isolation (i.e. some of your failures might have been necessary to produce some of your greatest successes). Be realistic about what you want and intend to accomplish in 2021, and leave some latitude to account for the ongoing challenges of everyday living

2. Self-Care is Not Optional

The human body and mind need three things to function at their respective peaks: (1) adequate nutrition/diet; (2) regular exercise; and (3) adequate sleep/rest. Pre-COVID, maintaining 2 of these 3 regularly was considered an accomplishment. That thinking needs to change in 2021.

The COVID pandemic and your ongoing divorce are great sources of stress and uncertainty. They can impact your sleep and eating patterns greatly. If those disturbances persist for long enough, you will find yourself in poor physical and mental health. You cannot be at your best if you’re not up and operating at full capacity. This why self-care should be your number one priority in 2021.

You cannot always regulate your sleep. However, you can regulate your diet and exercise. These investments will yield dividends (i.e. focus, concentration, stamina) with consistency. It is sometimes counter-intuitive to take time away for these things; but they are fuel for the mind and body.

3. Be Intentional with Your Time and Energy

To subsist and thrive in the new reality of 2020, prioritizing and allocating time effectively became premium talents. Mundane tasks like commuting and having business lunches were replaced with parenting tasks and early morning grocery runs. Routines were obliterated.

The pace of information sharing and gathering quickened. We were inundated with stimuli, be they personal, professional, social, or political. It was difficult to decide where to invest your time with seemingly endless choices at your disposal. This explains the phenomenon that was “Tiger King”.

Consciousness is said to be the pause between the stimuli and the response. To be intentional with your investment(s) of time and energy means pausing to assess options before reacting to the many stimuli you will encounter. Ask yourself – what, among these options, can I do next that will advance my goals for myself? If the response does not meet those goals, move on to an endeavor that does.

4. This Too Shall Pass

World War II persisted for seven years. The Civil War dragged on for four years. Even the Ebola virus/pandemic spanned three years. In either 2021 or 2022, the COVID pandemic will be in our rear-views. As will your divorce. Whatever you may be experiencing as far as stress and angst is temporary, even though it may not feel that way at the moment. It is important to remember that and take comfort in knowing that brighter times are ahead.

In order to make those brighter times more vivid in your mind, start planning now for what you want your post-divorce and post-pandemic life to look like. You can use those images to set incremental goals for yourself in 2021, and as reference points when deciding where and how to invest your time and energy (see point 3 above).

5. Build Incrementally Toward Your Goals

Don’t rush to fill the holes you find in yourself during the divorce. Approaching them incrementally, with small, tangible, realistic steps, is the best way to build toward the future you envision for yourself.  

For example, you may envision a future in which you’re re-married to another, more suitable romantic partner. If that’s you, I would recommend against hitting the town with your friends in search of a suitable mate while you’re still enduring the trauma of the divorce. Start by processing the trauma of your separation/divorce and what that means for you as an individual. Figure out what you want to do the same and what you want to do differently in your life moving forward. Then you can start looking for mister or misses right.

The same can be said for many post-divorce goals (i.e. financial security, job security; home ownership). They often seem vast and insurmountable from where you’re standing at the moment. But, if you break them down into several, smaller, attainable steps toward your goal, the path will not seem so daunting.

Casey Florance Admitted to Fellowship in the American Academy of Matrimonial Lawyers

AvatarDonna E. Van Scoy, Principal

Divorce attorney Casey Florance has been admitted to fellowship in the American Academy of Matrimonial Lawyers (AAML).

One of only 35 Fellows throughout Maryland, Casey is now among those generally recognized by lawyers and judges as preeminent family law practitioners with the highest level of knowledge, skill, and integrity.

For more information, see the AAML website: https://aaml.org/page/WhyAAML.

Casey Florance is a family law and divorce attorney who represents clients in all aspects of family law, including separation, divorce, custody, property, support, post-judgment issues, and domestic violence matters in Maryland.

My Spouse and I Have a Verbal Agreement. What is the Quickest Way to Obtain a Divorce in Maryland?

AvatarDonna E. Van Scoy, Principal

The short answer is: it depends.

Obtaining a divorce in a short marriage with no children and few, if any, assets is very different than a long marriage with children and assets. Then there are marriages in between the short marriage and the long marriage with combinations of no children or children and a variety of assets.

A logical first step is to contact a lawyer. While you and your spouse have reached a verbal agreement and are working together, a lawyer cannot represent both parties in Maryland. No matter your level of cooperation and intentions, you and your spouse can easily have conflicts of interests in a divorce. So one or both of you should to consult with a lawyer.

Moving the Process Forward

  1. Be open to the fact that you and your spouse may not have considered every issue that needs to be addressed in your divorce. It is possible that what you agreed to with your spouse will negatively affect your rights. A lawyer will explain the law, review your agreement, and identify any issues. TIP: Do not sign any agreement with your spouse before reviewing with a lawyer.
  2. Both you and your spouse should each meet with a lawyer. While you have the right to obtain your divorce without the assistance of counsel, in my experience that can result in delay and greater expenses than securing legal advice at the beginning of the process. If your spouse does not want a lawyer, you can be the party that moves the divorce along. However, your lawyer will need to recommend to your spouse (in writing) that they obtain counsel. Your lawyer could provide two or three names of other counsel for you to share with your spouse. Then hopefully your spouse will also seek counsel, or at the very least your spouse could review the final agreement with an attorney.
  3. To assist in the evaluation of your case, come prepared to your initial consult. Write down what you believe is your agreement with your spouse. Bring a list of all your assets including current values and any debt associated with the assets. Bring a copy of your current mortgage statement, your last three years of tax returns, your last three paystubs and, if possible, your spouse’s last three paystubs. If there are children consider how you and your spouse will parent your children and what the children’s schedule will be with each parent.
  4. Once you have all the information necessary to propose a settlement to your spouse, a Separation Agreement will need to be drafted. Your spouse (and counsel) will need to review and approve the agreement. If both of you continue to cooperate with each other in the spirit of divorcing as quickly as possible, the Separation Agreement could be completed and executed as soon as your lawyer can draft the agreement and your spouse can review and approve. While it can be longer or shorter, the average completion of an agreement is 30 to 60 days.
  5. The next step is to file a complaint for an uncontested divorce. Your spouse has to be served and has up to 30 days to file an answer. The fastest ground for the divorce is a Mutual Consent. You and your spouse can speed up the answer time up by working to file the complaint and answer at the same time or together.
  6. The court will then schedule an uncontested hearing. The moving party (the one who files) and their lawyer need to be present. The other party (and their lawyer) can also be present. During COVID19 the hearing is being held remotely. While these are uncertain times, the hearing is normally scheduled in four to eight weeks. The divorced is usually finalized in within 14 days.

The information above depends on a settlement being reached and the parties truly working together. Each case is different. Contested cases can take anywhere from a year or two, or more. Again, involving a lawyer once you start considering a divorce will help you have the information you need to manage your divorce as efficiently as possible.

Why You and Your Divorce Attorney Should Develop a Personal Relationship

Chris RobertsChris Roberts, Principal

I’ve always enjoyed the movie Jerry Maguire. Jerry is a sports agent representing Rod Tidwell, a bombastic, energetic, life-loving NFL wide receiver. Part of the appeal of the movie is the relationship between Rod and Jerry. Rod leaves no doubt about his professional goals (SHOW ME THE MONEY JERRY!!!!), but he has to navigate personal and professional challenges to make them happen. Rod is Jerry’s client, but his relationship with Jerry seems more than that. Throughout the film, Rod must rely on his relationship with Jerry to lead him to the promised land.

I’m not here to tell you that all of our clients are going to cry, yell at, and hug their divorce attorney, nor am I suggesting your attorney should model him or herself after Jerry Maguire. In many ways, however, a successful attorney-client relationship may look more like Rod and Jerry’s than many of your other professional relationships. Here’s how.

You need a personal relationship with your attorney

Speaking for myself and I am sure many others in my profession, we do this work because we actually want to help people. Yes, we are professionals, and we focus intensely on protecting the things our clients value most. But our jobs also often requires us to know the most intimate details of our client’s lives, facts that they may not share with anyone one else, ever.

Our clients come to trust and rely on us, not only to keep their confidence, but also to help manage the most difficult and valuable parts of their lives. A relationship like this doesn’t come into existence overnight, and it requires a personal investment, from the attorney and the client. The relationship takes time to build, through meetings, phone calls, emails, Zoom chats, court hearings, and more. Regardless of how you build it, a successful relationship requires effort, time, mutual understanding, and respect.

Trust and honesty are critical to a successful attorney-client relationship

Divorces are usually among the most difficult experiences of a person’s life, and they can sometimes take months or longer to complete. There is often a high degree of conflict, there are frequently multiple and simultaneous dispute resolution processes at work, and there are always unwanted or unexpected developments.

The twists and turns that occur don’t have to be disastrous for the outcome of a person’s divorce, but they will undoubtedly require trust and teamwork to overcome. The client should expect his or her attorney to be up front and honest about unwanted or unexpected developments, mistakes, delays, or bad results. These things happen in life in the best circumstances, and they happen in divorces too. It is critical to identify issues as they arise, communicate them openly and directly, and come up with a plan.

Good attorneys excel in these moments and clients should trust and rely on them to help move things forward in a constructive and positive manner.

Allow your attorney to help you define and pursue your goals

A divorce shouldn’t define you, but it is a milestone, and hopefully one that allows you to redefine your life direction and goals so that you can become the best possible version of you.

In order to move constructively through the divorce process and confidently on to a better life, it is essential to develop your life goals and objectives for the mid- and long-term. Without this direction, it is all too easy to become stuck in the morass of the divorce process, and to forget that divorce should be an event that you put in your rearview mirror as soon as possible. Maintaining focus on your goals will allow you to make the compromises in your divorce that are necessary to end that chapter of your life and move forward to the life that awaits.

Spend some time early in the divorce process discussing your goals with your attorney, and identify the key components you believe are necessary to accomplish your goals. Once you’ve done this, don’t allow yourself to lose track of your goals. Revisit them, and talk with your lawyer to assess your progress, and whether your goals remain viable and attainable. Don’t be afraid to adapt and adjust your goals as you go.

If you have developed the sort of attorney-client relationship I’ve suggested, you will find that your lawyer will be a valuable resource in helping you stay on the path to the life you want to live.