Caldwell v. Caldwell – Importance of Health Insurance Provision in Divorce Agreement

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Health Insurance in Divorce: A Critical Consideration

Health insurance coverage has been a hot topic in recent years as premiums have soared, and people with serious ailments find it next to impossible to secure coverage. While health insurance might seem like a minor consideration in the event of a divorce, our Fairfax divorce attorneys know the reality is that for some people, it will be a critical component of financial stability post-separation, especially for women.

The Impact on Women Post-Divorce

A 2012 study conducted by the University of Michigan indicated that roughly 115,000 women lose their private health insurance following a divorce each year. Of those, more than half remain uninsured for several months or even years. The problem is many women were dependent on their husband’s health care plans. Even those who had plans through their own employer may find the cost prohibitive on a single income. Researchers found that 11 percent of these women became insured after divorce, with the most affected group being women between the ages of 50 and 64.

The Case of Caldwell v. Caldwell

The recent case of Caldwell v. Caldwell, before the Court of Appeals of Virginia, highlights the importance of addressing health insurance in divorce agreements. The trial court ruled that the divorce agreement required the husband to pay for his ex-wife’s health insurance premiums indefinitely, as well as for unreimbursed medical expenses, and the appellate court affirmed this decision.

Background of the Case

The couple married in October 1968 and divorced nearly four decades later in June 2006. Both were employees and stockholders of a local publication. As part of the separation agreement, the husband was to continue paying for the wife’s health insurance coverage through the company. The agreement allowed the husband to select the least expensive policy that provided the same benefits and required him to pay “any and all medical expenses” the wife incurred that insurance did not cover.

Post-Divorce Issues

Six years after the divorce, the ex-wife sought to hold her ex-husband in contempt for failing to pay her insurance premiums and unreimbursed medical expenses, totaling roughly $20,000 since 2007. She discovered in 2007 that she no longer had insurance and was told by her ex-husband that he could no longer afford the payments. The wife subsequently purchased a less comprehensive policy for $220 monthly but canceled it after realizing it did not cover necessary expenses.

From 2009 to 2013, when she became eligible for Medicare, she had no health insurance. Throughout this time, she sent medical bills to her ex-husband, but he never paid them.

Court Rulings

The husband argued that he was only responsible for expenses first submitted to an insurance company, but both the trial and appellate courts disagreed. He was ordered to pay for her current premiums, outstanding medical bills dating back to the separation, and the attorney’s fees incurred by his ex-wife for bringing the case to court.

Conclusion

The Caldwell v. Caldwell case demonstrates the importance of securing provisions for health insurance in divorce agreements, especially for those who may be reliant on their spouse’s coverage. It’s essential to ensure that these agreements are clear and enforceable to avoid complications later on.

If you’re facing a divorce and need assistance navigating health insurance provisions or other complex details, contact our team at DiPietro Family Law Group, PLLC at (888) 530-4374 for a confidential consultation.