What Happens to Health Insurance in a Gray Divorce?

 Posted on December 09, 2025 in Health Issues and Divorce

The American Psychological Association says that roughly 35 percent of all divorces are between adults age 50 and older. Divorcing later in life presents many unique challenges, particularly when it comes to finances. A significant concern during a gray divorce is health insurance. After years of shared coverage, suddenly losing access to affordable healthcare can create major stress at a time when healthcare needs typically increase.

Whether you are still on an employer-sponsored plan or approaching Medicare eligibility, understanding your coverage options is essential for protecting your future healthcare needs. If you are planning to get divorced in 2026, Illinois law continues to allow certain options for health insurance after divorce. However, these protections have specific time limits and requirements. A DuPage County divorce attorney can help you act quickly to keep your coverage and avoid gaps that could leave you vulnerable to high medical costs.

How Does Divorce Affect Your Current Health Insurance?

People who rely on their spouse's employer-sponsored health insurance may lose access to that coverage once the divorce is finalized. However, several alternatives may be available. 

COBRA coverage under the Consolidated Omnibus Budget Reconciliation Act allows a spouse losing health insurance due to divorce to continue coverage under their former spouse's employer-sponsored plan for up to 36 months if the employer has 20 or more employees. This temporary safety net can be expensive; you must pay the full premium plus a two percent administrative fee. You must also notify the employer within 60 days of your divorce.

Illinois also offers spousal continuation coverage. Whether you can take advantage of this coverage, and for how long, depends on the type of plan and your age. Talk to your attorney for more details. 

What Are Your Options for Health Insurance after Divorce If You Are Not Eligible for Medicare?

If you are employed after your divorce, you can sometimes get health insurance through your own employer. Private health insurance through the Health Insurance Marketplace is another option, though it can come with higher premiums and deductibles depending on the selected policy.

If your income after the divorce falls below certain thresholds, you may qualify for Medicaid assistance in Illinois. Some couples considering gray divorce choose legal separation instead, which allows them to remain legally married so one spouse can stay on the other's health insurance plan.

How Does Medicare Work After a Divorce?

For those over 65, Medicare is often the most important provider of long-term healthcare coverage. If both spouses are already enrolled in Medicare, a divorce generally does not affect their eligibility. Each person's Medicare benefits are tied to their own work history and contributions to the Medicare system. 

However, if one or both spouses are not yet enrolled in Medicare, a divorce could affect income levels, which may impact the amount paid for Medicare Part B premiums. Since these premiums are income-based, the financial settlement from the divorce might increase or decrease your payment. 

Can Your Divorce Agreement Deal with Health Insurance Costs?

Illinois law does not require a spouse to continue providing health insurance for their ex-spouse after a divorce. However, the court can order one spouse to contribute to the other's healthcare costs as part of a spousal support arrangement.

This could be especially helpful for a spouse who has not yet reached Medicare eligibility or has expensive medical costs. During divorce negotiations, you can specifically address healthcare expenses when discussing spousal support.

Contact a Wheaton Gray Divorce Attorney

If you are getting a divorce later in life and feel concerned about health insurance and healthcare costs, it is important to understand your options. Contact a DuPage County divorce lawyer at Divorce Over 50 - Goostree Law Group. Our team can work with you to protect your financial and healthcare future. Call 630-634-5050 today to schedule a free consultation.