What to Know About Health Insurance & Divorce

By Brette Sember, JD Updated Aug 20, 2025

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When couples divorce, it’s easy to focus on custody schedules, dividing assets, and moving forward emotionally.

But one of the most overlooked and most financially impactful aspects is health insurance.

According to the Kaiser Family Foundation, the average annual premium for employer-sponsored health coverage in 2024 was $8,951 for an individual and $25,572 for a family.

Losing access to a spouse’s plan can mean suddenly shouldering those costs yourself. Without planning, this transition can feel like a financial free fall.

The good news is that with the right steps, you can protect your health coverage and your children’s before, during, and after a divorce.

Why Divorce Changes Your Health Insurance

Most family health insurance policies have one primary policyholder, often the spouse whose employer provides coverage and lists other family members as dependents.

When you’re married, that works seamlessly.

But when a divorce is finalized, you are no longer considered a spouse under the policy, and coverage ends.

This isn’t a matter of your ex “kicking you off” — it’s simply how insurance contracts are written.

In some states, the court will issue automatic temporary orders as soon as a divorce is filed, prohibiting either party from making changes to insurance until the divorce is final.

This rule exists to protect dependents from being suddenly uninsured in the middle of a legal dispute.

Still, once the final judgment is entered, the dependent spouse’s coverage stops often on that very day.

Understanding Your Starting Point

Before making any moves, you need a clear picture of your current situation:

Who is the policyholder? If you’re on your own employer’s plan, you may not need to change anything. If your spouse is the policyholder, you’ll need a replacement plan.
What type of coverage do you have? Is it employer-sponsored, through the ACA Marketplace, or a federal/state program like Medicare or Medicaid?
Who else is on the plan? If you have children, you’ll need to decide whose policy they stay on after the divorce.

What Happens After the Divorce Is Final

Once the divorce decree is signed:

The dependent spouse is no longer eligible under the family plan.
The policyholder (or their employer) must notify the insurer — usually within 30 days.
You may receive an offer for COBRA coverage or need to seek new insurance immediately.

Failing to notify the insurer can create complications.

If the company continues to cover a now-ineligible person and later discovers the divorce, they can retroactively cancel coverage and deny claims.

Coverage Options After Divorce

The end of marriage doesn’t have to mean the end of health coverage. Divorce is considered a qualifying life event, meaning you can sign up for new insurance outside of normal open enrollment.

COBRA Continuation Coverage

COBRA allows you to keep the exact same coverage you had during marriage for up to 36 months. But there’s a catch: you pay the entire premium yourself, plus up to a 2% administrative fee.

It’s a good option if you’re mid-treatment or want to avoid switching doctors while you explore more affordable long-term options.

Employer-Sponsored Coverage

If you have a job with benefits, you can enroll in your employer’s plan right away after divorce. This often costs less than COBRA, but may involve changing networks or coverage levels.

ACA Marketplace Plans

If you don’t have access to employer insurance, you can buy coverage on Healthcare.gov or your state exchange. Depending on your post-divorce income, you may qualify for subsidies that significantly reduce monthly premiums.

Medicare or Medicaid

Medicare: If you’re 65 or older, or qualify due to disability, losing coverage opens a special enrollment period.
Medicaid: If your income drops after divorce, you may qualify for free or low-cost coverage, even if you’re still finalizing the divorce.

Short-Term Health Insurance

These plans offer temporary coverage: useful if you’re close to Medicare eligibility or starting a new job with benefits soon. They’re less comprehensive but can prevent a coverage gap.

Health Insurance for Children After Divorce

When children are involved, insurance coverage should be part of the divorce settlement, not an afterthought.

Courts often require:

One parent to maintain health insurance for the children.
A clear agreement on how premiums, deductibles, co-pays, and uncovered expenses will be split.

Best practice: Have the medical provider bill the responsible parent directly rather than relying on reimbursements, which can cause conflict.

Common Mistakes That Cause Coverage Gaps

Even when you have a solid divorce settlement, health insurance can become a hidden minefield. Between deadlines, paperwork, and the emotional weight of ending a marriage, it’s easy to overlook critical steps that keep your coverage intact.

Unfortunately, even small oversights can lead to big consequences.

Procrastinating: You have 60 days to act after losing coverage. Miss the window, and you may wait months for new insurance.
Assuming coverage will continue: Once divorced, most employer plans drop the ex-spouse immediately.
Not budgeting for premiums: Include future health insurance costs in settlement negotiations, especially if one spouse has been providing coverage.
Overlooking your children’s needs: Changes in coverage can lead to denied claims if the new plan doesn’t include your child’s current doctors.

The Bottomline

Health insurance is one of the most overlooked and most financially consequential parts of a divorce.

Losing access to a spouse’s plan can leave you facing thousands in unexpected premiums or even uninsured during a vulnerable time.

Understanding your current coverage, acting quickly when divorce proceedings begin, and including insurance in your settlement negotiations are essential steps.

Treat health coverage as a non-negotiable priority from day one of your divorce planning to ensure you and your children remain protected without interruption.