Legally separated

SamIam

Guru
1000 Post Club
1,237
I have a client who is separated from her husband and divorce will be finalized sometime in 2018. She moved out. Since she will be filing her own tax because she is separated and living at a different address would she qualify for a subsidy? If no I will put her on a short term med because she can't afford a ACA plan. Will she qualify for a special enrolment at the time the divorce is finalized?
 
I would process as if she were divorced if no group is currently in effect. Note that she will get hit repaying subsidy if she under estimates income. You don't say what her current coverage is. Perhaps leave her on a group plan if she is currently a dependent on her husband's employer plan.

Simply getting mad at your spouse is not a reason to drop them off coverage or a qualifying event under a 125 POP plan. Most employers with any decent agent have a 125 plan for employee premium payments. I would have her write and document the situation to the employer so that the husband doesn't go into HR and term her.

You'd better be sure of exact details so she doesn't take your advice and end up without coverage. Cobra may be another option. Negotiate for her ex pay for it.
 

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