Understanding Automatic Temporary Restraining Orders (ATROs) in Divorce: Insurance and Beneficiary Designations
/When navigating a divorce, it's crucial to understand the implications of Automatic Temporary Restraining Orders (ATROs), particularly concerning health, dental, and medical insurance, as well as beneficiary designations on investment and life insurance accounts.
Health, Dental, and Medical Insurance
In many divorces, one spouse typically carries health, dental, and medical insurance for the family. In the case at hand, the wife provides these coverages. A common concern during divorce proceedings is whether she can change or cancel these coverages before the divorce is finalized.
The ATROs in place during a divorce generally prohibit either party from making any changes to insurance policies until the divorce is finalized. This means the wife cannot unilaterally cancel or alter the insurance coverage without risking a violation of the restraining order.
Beneficiary Designations on Investment and Life Insurance Accounts
The husband is named as the beneficiary on the wife's investment accounts and life insurance policies. Similar to insurance coverages, the ATROs prevent either party from changing beneficiary designations until the divorce is finalized. This is designed to maintain the status quo and prevent one party from disadvantaging the other financially during the divorce proceedings.
Exceptions and Agreements
While ATROs generally enforce these restrictions, there are scenarios where changes might be possible. If both parties agree to alter the insurance coverages or beneficiary designations, they can attempt to make these changes. However, it’s important to note that even with mutual consent, the provider of the insurance or the administrator of the retirement account may refuse to comply until the divorce is legally finalized.
For instance, there have been cases where insurance companies or retirement account administrators have refused to make changes based solely on an agreement between the spouses, insisting instead on a finalized divorce judgment. On the other hand, there are also instances where providers have honored such agreements.
Practical Steps for Spouses
If the wife wishes to make changes to the insurance coverages or beneficiary designations before the divorce is finalized, she should:
Reach an Agreement: Obtain mutual consent from her spouse regarding the desired changes.
Attempt the Change: Submit the agreement to the insurance company or retirement account administrator.
Prepare for Denial: Be prepared for the possibility that the request may be denied until the divorce is finalized.
Consult Legal Advice: Always seek legal advice to ensure compliance with ATROs and to explore any potential legal pathways for making these changes.
In conclusion, while ATROs generally prevent changes to insurance coverages and beneficiary designations during a divorce, mutual agreements between spouses can sometimes be honored by providers. However, there is no guarantee, and legal guidance is essential to navigate these complexities effectively.