Nancy L. Sponseller

Working for you & with you.

Medical Expenses and Divorce

On behalf of Law Office of Nancy L. Sponseller posted  on Monday, August 25, 2014.

Unique medical issues for Ohio couples who are of retirement age could mean that they decide to divorce in order to save their retirement fund. As life expectancy increases, those without long-term health insurance might not have any other options. Although Medicare will pay for a maximum of 100 days of nursing care, they will either need to use long-term health insurance if it is available or pay on their own if they need further care. Medicaid will eventually cover a person’s health care bills, but only after all other resources are depleted.

Even when a couple does not plan to divorce, they might not have any other choice if they want to keep their savings intact. The person who is still healthy might feel guilty for even thinking about ending the marriage even after counsel from financial planners and lawyers. For married couples, Medicaid looks at the assets of both partners before providing coverage. The healthy partner’s resources will be depleted, even if they have planned well or are on a second marriage.

In one case, the wife suffered from serious and continued dementia. Her assets were drained within a year of her diagnosis, and her husband began paying for her care. However, he used his retirement to pay more than $3,000 each month. At that rate, he would be bankrupt within two years. A financial planner looked over his assets and consulted with other professionals. They agreed that he should file for divorce in order to protect himself.

When a couple stands to lose all of their savings because of medical bills, divorce could be an option. A family law attorney might help a client decide if divorce is the right financial decision when facing mounting health-care expenses.

Source: Forbes, “Divorce Due To Medical Bills? Sometimes It Makes Sense“, Eve Kaplan, August 21, 2014

Source: Forbes, “Divorce Due To Medical Bills? Sometimes It Makes Sense“, Eve Kaplan, August 21, 2014