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A Service of OnQue Technologies, Inc. |
| Anticipating Legal Separation (What's Legal
About It?) |
April 29, 2006
By Scott Haines, President
OnQue Technologies, Inc.
Santa Rosa, CA |
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The
following is an excerpt from Questions and Answers from the COBRA Help Desk–Part
III.
Employer: I have an employee who has asked
for his wife to be taken off the health insurance. They are separating but it
is not legal yet. Am I correct in my understanding that the wife can elect
COBRA coverage once the separation is finalized?
OnQue: Yes. Following are
some key points to keep in mind in such cases:
- For the separation of marriage
partners to be recognized as a qualifying event, it must result in a loss of
coverage, which typically does not occur until the separation is sanctioned by
the state. This means that the couple must first receive a judgment of
separation from a state court—living separate and apart does not
constitute legal separation until a state court makes it so. Then, the
administrator can terminate dependent coverage if such action is required under
the plan rules.
- Some states, such as Louisiana,
do not recognize the separation of marriage partners as a legal matter. Simply
living separate and apart in those states is not a qualifying event, because
such separation generally does not result in a loss of coverage to the
employee's dependents.
- Employees planning to separate
or divorce often terminate dependent coverage before receiving a judgment from
the court. COBRA regulations resolve the problem by providing that a qualifying
event will occur on the date of the judgment, even though the dependents were
not covered at that time.
For more information on this issue, see
What
Happens When a Spouse is Dropped From the Plan in Anticipation of
Divorce? |
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This information is provided by
OnQue Technologies, Inc. for educational purposes only and does not constitute
legal advice. If legal advice or other professional assistance is required, the
services of a competent professional should be sought.
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