Special Provisions for Former Spouses

If you have family membership covering your spouse and you divorce, your spouse may continue to be covered under your family membership:

  • If the divorce order specifically calls for this, and
  • If neither you nor your former spouse remarries.

If you or your former spouse remarry, your former spouse’s eligibility for coverage ends. Once coverage ends, your former spouse may continue coverage on an individual basis under COBRA for the remaining period (if any) until 36 months have gone by since your divorce.

Special Tax Considerations

Under current tax laws, the value of your former spouse’s health coverage is subject to federal income and Social Security taxes. These taxable amounts are based on the full amount of an individual plan (that is, employee pre-tax contribution plus employer contribution) and are called imputed income. Imputed income for your former spouse’s health coverage will be reported as income on each paycheck, and will be included in the taxable earnings shown on your W-2 Form. Coverage for your former spouse is subject to imputed income for tax purposes.