Divorce cases can often be overwhelming and emotionally challenging. Alongside dealing with important matters like custody arrangements, asset division, and alimony, couples also need to address the handling of their insurance policies. Wyoming, specifically, has specific laws and regulations that dictate how insurance policies are managed during divorce proceedings.
Health Insurance
Health insurance division is often a contentious topic in divorce cases. In Wyoming, it is mandatory for all children under the age of 18 to be covered by health insurance. If one spouse possesses insurance coverage that includes the children, the court may order them to continue providing coverage for the children under their plan.
In scenarios where both spouses have health insurance coverage, the court holds the authority to decide which spouse will be responsible for continuing coverage for the children. Additionally, the court may require the other spouse to either pay for the cost of health insurance or provide a cash equivalent.
However, there is no legal obligation for one spouse to provide health insurance coverage for the other spouse following a divorce. If the insured spouse intends to remove their soon-to-be former spouse from their policy, they can do so once the divorce is finalized.
Life Insurance
In Wyoming, life insurance is categorized as property and is subject to division during divorce proceedings. If a couple holds a life insurance policy with a cash value, the cash value itself is considered an asset that needs to be divided.
When determining how to divide the cash value, the court takes multiple factors into consideration. These factors include the financial needs of each party, the contributions made by each spouse to the policy, and the purpose behind the policy’s purchase.
In cases where a spouse is required to maintain a life insurance policy for child support or alimony reasons, the court may order the transfer of the policy’s ownership to the other spouse to ensure its continuation.
Auto Insurance
In Wyoming, every driver is mandated by law to possess liability insurance, and divorce does not exempt an individual from this requirement. When both spouses are listed on the same auto insurance policy, they must decide which spouse will remain on the policy and who needs to obtain their own policy.
If one spouse regularly drove the vehicle, they may be the one responsible for maintaining the insurance policy. However, if both spouses frequently drove the vehicle, they will need to collaborate to determine who will carry the insurance going forward.
Homeowners Insurance
In the case where a couple jointly owns a home, they will need to reach an agreement regarding their homeowners insurance policy. If one spouse becomes the sole owner of the home, they must procure their own homeowners insurance policy.
Alternatively, if both spouses retain financial interest in the home, they can choose to either have separate policies or remain on the same policy with both names listed. If the decision is to remain on the same policy, both spouses will need to notify their insurance carrier about the divorce.
Conclusion
In Wyoming, insurance policies are identified as property and are often subject to division during the divorce process. Various factors are taken into account by the court when determining the division of insurance policy assets. Having a clear understanding of Wyoming’s laws and regulations regarding insurance policies can greatly assist couples in navigating the intricate and emotional journey of divorce.