The Real Cost of a Divorce

By Carla Fried - 2013-11-25T13:43:42Z

Photograph by Kava Gorna/Gallery Stock

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Examine Health Insurance

A 2012 University of Michigan study estimated that 115,000 women a year lose private health insurance coverage when they divorce and are no longer eligible for coverage through their ex’s work-based plan. Even if Cobra -- the federal regulation that allows ex-employees, or exes of employees, to keep coverage for as long as 18 months -- is available, paying 102 percent of the premium cost is typically a prohibitive cost. (The extra 2 percent is tacked on for administrative costs.)

The Affordable Care Act is expected to lessen the high costs of divorce for couples, especially those where the affected party has a preexisting condition. Affordable is in the eye of the policyholder. The government estimates the average “Silver” plan monthly premium for one person in 2014 will be $328. If you want to upgrade to the “Gold” tier, the premium can double.