Insurance considerations on divorce or dissolution
Produced in partnership with Rebecca Dziobon of Penningtons Manches Cooper LLP
Insurance considerations on divorce or dissolution

The following Family guidance note Produced in partnership with Rebecca Dziobon of Penningtons Manches Cooper LLP provides comprehensive and up to date legal information covering:

  • Insurance considerations on divorce or dissolution
  • Medical insurance
  • Life insurance
  • Life insurance and drafting considerations
  • Death in service benefits

This Practice Note is impacted by the exit of the UK from the EU on 31 January 2020. See Practice Note: Brexit and family law. This Practice Note sets out the current position on insurance considerations on divorce or dissolution.

Parties to divorce or dissolution proceedings will have to think carefully about the various insurance products that they hold either individually or jointly when they are working through the financial disclosure stage and towards an overall settlement. There may be buildings and contents insurance, car insurance and other policies covering various assets. This Practice Note focuses on two more complex areas: medical insurance and life insurance.

Medical insurance

In the UK, private health care can be obtained through private insurance. It is used by less than 8% of the population and generally as a top-up to NHS services. It is often provided by employers to employees as part of their remuneration package. Such packages often allow the employee to extend the insurance cover to their spouse/civil partner and children at favourable rates. Private medical cover for parties who are expatriates is often particularly important as the parties may be unable to access NHS services.

The options available regarding medical insurance on divorce/dissolution are to:

  1. remain covered by the other party’s insurance plan, or

  2. switch to another provider

Medical insurance—continuity of cover

Continuity of