Untangling Your Finances When You Divorce: Don’t Forget These Important Details | Part Two | Examine Your Insurance
Do You Now Have More Home Insurance Than You Need?
Oftentimes, property and casualty policies may be issued in the name of one spouse. This is usually the case with homeowners insurance. If you receive property from a divorce, you should make sure the policy has your name on it in the event of a claim. It would also be prudent to inventory your personal property after the split, as you may be paying a higher premium when you now only need half the coverage.
For example, if you move from a four-bedroom house with $60,000 content coverage to a two-bedroom, you may only need $30,000 worth of coverage. You could also be paying extra for valuables, such as jewelry and art, belonging to your former spouse, so it is important to re-evaluate your policy.
Prepare for Rising Car Insurance Rates
Your car insurance rates may increase. This is due to marriage discounts the insurance companies provide. Being married indicates some stability to the insurance companies and lowers your insurance premiums. You will also have to remove any stacked coverage if you no longer have two or more cars in the household. If your address changes or the “housing” for the car changes, this could also affect your premiums. For example, if your car moves from a secure garage to an outdoor parking spot, this could cause your premium to rise, depending on the carrier.
Life Insurance Issues to Consider
You may have various life insurance policies, maybe some with your employer. Check the beneficiaries to make sure they are in line with your desires. If you want minor children as beneficiaries, you may need to set up trusts. You should also revisit your estate plan with your attorney to make sure your trusts don’t list your former spouse as trustee (unless that is your desire).
It may also make sense to get term insurance coverage on the spouse who pays child support until the children are old enough to sustain themselves. The spouse who receives child support should be the beneficiary of this policy.
How about Health Insurance?
If health insurance is provided by the employer of one of the spouses, how will the other spouse get coverage after the divorce? Are the dependents covered under that policy? This can be a financial hardship if the other spouse has to go and find individual coverage on their own.
Categories
Recent Insights
-
The Psychology of Money for Kids: How Couples Can Teach Financial Literacy Together
Why Teaching Kids About Money Starts Early Children begin forming beliefs about money far earlier than many parents realize. By the time they’re in kindergarten, many kids already show emotional reactions to saving, spending, and sharing. These early money behaviors aren’t just shaped by conversations—they’re based on what kids see, hear, and feel in their…
-
Talk Your Chart | Dollar Down. Energy Up. What’s Next? | Episode 70
In Episode 70 of Talk Your Chart, Marcos and Brett break down China’s energy dominance, the frozen U.S. housing market, a softening job landscape, and what the falling dollar means for investors. Plus, they discuss market concentration and why it might be time to look beyond the biggest names in the S&P 500. Charts available…
-
Executive Order Could Bring Alternative Investments to 401(k) Plans: What You Need to Know
For millions of Americans, 401(k) accounts are the cornerstone of retirement savings. A new proposal from the White House could expand what you can invest in—and potentially reshape your long-term strategy. This new Executive Order could eventually change the types of investments available inside your 401(k) or other employer retirement plan. While nothing is changing…
-
Smart Starts: The Best Books and Games to Teach Kids About Money (Ages 4–12)
Why Teaching Financial Literacy to Kids Matters Financial literacy is one of the most important life skills we can teach children—and yet, it’s rarely part of the standard school curriculum. Left unaddressed, money can become a source of confusion or even anxiety later in life. But taught early, it becomes a tool for empowerment. The…
-
One Big Beautiful Bill: Key Financial Impacts for LGBTQIA+ Households
On July 4, 2025, President Donald Trump signed the “One Big Beautiful Bill Act” into law—a wide-reaching piece of legislation that touches everything from tax rates and healthcare to education, housing, and family benefits. For LGBTQIA+ individuals and families, some of these changes may create new planning opportunities, while others may require a closer look…