Obtaining or Terminating Benefits After a Piscataway Divorce

People going through a divorce in Piscataway often overlook the important post-judgment steps involved in obtaining or terminating benefits after a Piscataway divorce. Whether the issue involves health insurance, Social Security, or retirement accounts, these updates can carry long-term consequences for your finances and legal standing. At the Law Office of Jennifer Marshall, Esq., a seasoned divorce attorney works to ensure that no critical detail is overlooked.

Divorces in New Jersey, including those finalized in Middlesex County courts, legally sever marital ties. However, you must still take independent action to terminate or change benefit elections affected by the divorce. New Jersey does not require employers to notify former spouses of these changes, and delaying updates could violate federal rules or contract-based policies, potentially leading to financial or legal complications.

Notify Human Resources Immediately

Once a divorce is finalized in Piscataway, the first step should be to contact your employer’s human resources department. Many employee benefit programs operate under COBRA, a federal law that allows certain people to retain group health coverage for a limited time following divorce.

Under 29 U.S. Code § 1163(3), a divorce is considered a qualifying event, and employers are required to inform plan administrators within 30 days. You must then notify the health insurance plan yourself within 60 days to initiate COBRA continuation. Failing to do so means forfeiting your right to this option.

Local companies all have their own HR benefit protocols. Be sure to request any forms related to removing a former spouse from dependent status. Continuing to cover an ex-spouse on a family plan after divorce can be considered insurance fraud. Discuss these steps with your divorce attorney before you begin.

Change Health Insurance Enrollment

Spouses who lose health insurance coverage due to divorce can typically continue their same plan for up to 36 months under COBRA, but you must pay the full premium plus a 2% administrative fee. According to the U.S. Department of Labor, COBRA enrollees pay approximately 102% of the actual plan cost, which often exceeds $500 per month.

If you are not the covered employee and do not want COBRA, you can explore enrollment through the New Jersey Health Insurance Marketplace. Again, divorce counts as a qualifying life event under the Affordable Care Act, allowing enrollment outside the annual open enrollment period. Your Piscataway divorce lawyer can provide guidance.

For parents in Piscataway, health insurance adjustments should also address any custody arrangements. Family Part Rule 5:6B of the New Jersey Court Rules mandates that child support orders include clear terms for medical coverage. Modifying your insurance to reflect updated responsibilities can avoid disputes or enforcement actions, and your divorce lawyer can guide you.

Update Your Beneficiaries Promptly

People often forget to update beneficiaries after a divorce. They may forget certain accounts they have that ask for beneficiaries. Yet, this simple oversight can result in unintended distributions of life insurance, retirement accounts, or even wrongful payments from pensions.

Under state law, divorce automatically revokes spousal beneficiary designations in wills, but not necessarily in other contracts like insurance or 401(k) accounts. To avoid litigation or confusion later, request and submit new beneficiary forms to all financial institutions.

In Piscataway, large employers and unionized workplaces often manage benefits through third-party administrators. Contact these providers directly to request change forms and confirm that your updated designations are properly recorded.

Reach Out to a Piscataway Divorce Lawyer Today About Obtaining or Terminating Benefits

A divorce lawyer can assist with obtaining or terminating benefits after a Piscataway divorce, helping ensure that important financial and legal details are handled correctly. At the Law Office of Jennifer Marshall, Esq., we understand how easily these post-judgment responsibilities can be overlooked. Our relationship with clients does not necessarily end with a divorce judgment, as we remain available to provide continued legal counsel when these issues arise.