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Dec 19
2008
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QDRO, COBRA and DivorcePosted by Dads Divorce in taxes , Ken McRae , Cordell Cordell, PC , COBRA |
by Ken McRae, Cordell & Cordell, PC
Every field has its own set of abbreviations and acronyms. People who work in the field are comfortable using these terms but, to people who do not work in the area on a daily basis, the terminology is foreign. In domestic relations law two of the most common acronyms are COBRA and QDRO. The purpose of this article is to explain these terms and discuss how they are related to a divorce. The Consolidated Omnibus Budget Reconciliation Act (“COBRA”) includes a provision governing employer provided health insurance. The purpose of the provision is to allow employees to remain insured under the company’s health insurance after they cease employment with the company. The employer is not required to pay for the coverage; the employee pays the full premium even if the employer previously paid some or all of the premium. This insurance coverage is known as COBRA insurance. COBRA coverage is an important consideration in divorce cases where the family has insurance through one spouse’s employment.
