Divorce and Health Insurance: How to Get Covered After Losing a Spouse's Plan

The 60-day window

Divorce (or legal separation, in states that recognize it) is a qualifying life event for the ACA marketplace. You have 60 days from the date your coverage ends to enroll in a new marketplace plan. In most cases, your coverage under your ex-spouse's employer plan ends either on the date the divorce is finalized or at the end of that month, depending on the employer's plan rules.

This 60-day SEP applies whether you're losing coverage from an employer plan, a marketplace plan you shared with your spouse, or any other qualifying coverage. You'll need to provide documentation when you apply — typically a divorce decree or court order showing the date of divorce, plus proof of your prior coverage end date.

COBRA from your ex-spouse's plan: 36 months, not 18

Here's something most people don't know: when you lose coverage due to divorce, COBRA gives you up to 36 months of continuation coverage, not the 18 months you get after a job loss. That's because divorce is classified as a "qualifying event" for the dependent (you), which gets the longer window under federal law.

The catch is the same as any COBRA situation: you pay the full premium yourself, plus a 2% administrative fee. Your ex-spouse's employer was probably covering 70-80% of the cost. The average COBRA premium for individual coverage in 2026 is around $560-$650 per month. That's $6,700-$7,800 per year out of pocket.

COBRA's advantage is continuity. Same doctors, same network, same formulary. If you're in the middle of a treatment plan, pregnant, or have a provider you can't afford to lose, those 36 months of identical coverage can be worth the cost. For a detailed cost breakdown, see our COBRA vs. marketplace comparison guide.

COBRA vs. marketplace after divorce

When COBRA usually wins

• You're in the middle of treatment with a specialist who isn't in any marketplace plan's network.
• You're pregnant and want to keep your current OB-GYN and hospital.
• You have high prescription costs and your current plan's formulary covers them well.
• Your income will be above 400% FPL ($63,440 for one person in 2026), so you won't qualify for marketplace subsidies anyway.

When the marketplace usually wins

• Your post-divorce income qualifies you for a subsidy. If your individual income will be between $15,650 and $63,440 (100-400% FPL for one person in 2026), you'll get a premium tax credit that reduces your monthly cost.
• Your income is below 250% FPL ($39,125 for one person). At this level, Silver plans come with cost-sharing reductions that lower your deductible, copays, and out-of-pocket maximum. COBRA plans don't offer CSR.
• You don't need to keep your current doctors and can choose from marketplace networks.
• You want to save money. A subsidized marketplace plan often costs $100-$300/month compared to $560-$650 for COBRA.

One important detail: you can elect COBRA and then switch to a marketplace plan, but the timing matters. Your original 60-day SEP from the divorce is the window you need to use for marketplace enrollment. Dropping COBRA later does not create a new SEP. If you want to keep your options open, start the marketplace application within the 60-day window even if you initially choose COBRA.

How divorce changes your subsidy

This is often the silver lining. When you were married, the marketplace used your combined household income to calculate subsidies. After divorce, only your individual income counts. For many people, this means a dramatic drop in household income and a corresponding increase in subsidy.

For example: if your combined married income was $90,000 (well above the 400% FPL cutoff of $84,600 for two people), you got zero subsidy. After divorce, if your individual income is $35,000, that's about 224% FPL for a household of one. You'd qualify for a meaningful premium tax credit and could also get cost-sharing reductions on a Silver plan.

When you estimate your income for the marketplace application, use your projected income for the rest of the year, not your income while married. Include wages, alimony (taxable if the divorce agreement predates 2019), child support (not counted as income), investment income, and any other MAGI sources.

Estimate your post-divorce subsidy

Enter your individual income and household size (just you, or you plus any children you'll claim as dependents) to see what you might qualify for.

Children's coverage after divorce

Health insurance for children after divorce depends on your custody arrangement and what the divorce decree specifies. Here are the most common scenarios:

• Divorce decree assigns coverage. Many divorce agreements specify which parent must provide health insurance for the children. If that's in your decree, it's legally binding. The assigned parent typically covers the kids through their employer plan or a marketplace plan.
• Custodial parent claims children. For marketplace subsidy purposes, the parent who claims the children as tax dependents includes them in their household size. This increases the FPL threshold and can increase the subsidy. A single parent with two children has a 100% FPL of $22,590 and a 400% FPL of $90,360 in 2026.
• Children on both plans. In some cases, children can be covered under both parents' plans (coordination of benefits). This is uncommon but possible, especially if both parents have employer coverage.
• CHIP for children. If your post-divorce income is low, your children may qualify for the Children's Health Insurance Program (CHIP), which covers kids in families earning up to 200-300% FPL depending on the state. CHIP enrollment is open year-round.

Medicaid eligibility after divorce

If your income drops significantly after divorce, you may qualify for Medicaid. In states that expanded Medicaid, the threshold is about 138% FPL ($21,597 for a single person in 2026). Medicaid has no enrollment period — you can apply any time.

If your state did not expand Medicaid (Texas, Florida, Tennessee, and several others), there's a potential coverage gap: you might earn too little for marketplace subsidies (below 100% FPL) but too much for traditional Medicaid. If you have children, they may still qualify for Medicaid or CHIP even when you don't.

Documents you'll need

• Divorce decree or court order showing the date the divorce was finalized.
• Proof of prior coverage end date — a letter from your ex-spouse's employer or insurance company confirming when your coverage ends.
• Income documentation — recent pay stubs, tax return, or other proof of your projected annual income.
• COBRA election notice — your ex-spouse's employer is required to send you one. This shows the premium and deadline for electing COBRA.
• Custody documentation — if you're enrolling children, you may need to show which parent claims them as dependents.

Common mistakes to avoid

• Not realizing COBRA gives you 36 months. Many people assume divorce COBRA is 18 months like job loss COBRA. It's not. You get 36 months, which can bridge you through a longer transition period if you need continuity of care.
• Missing the 60-day SEP window. If you don't enroll in a marketplace plan within 60 days of losing coverage, you'll have to wait until Open Enrollment in November for coverage starting the following January. Don't let the stress of divorce cause you to miss this deadline.
• Using your married income for subsidy estimates. Your post-divorce household is just you (plus any dependents you claim). Use your individual projected income, not your combined married income. Many people underestimate their subsidy because they use the wrong income figure.
• Filing taxes wrong the first year. The year of your divorce, you'll file as Single or Head of Household (if you have dependents) for the entire year, even if you were married for part of it. This affects your premium tax credit reconciliation on Form 8962. If you received subsidies based on married income early in the year and then divorced, work with a tax professional to reconcile correctly.
• Forgetting to update the marketplace. If you were on a joint marketplace plan, you need to report the divorce and remove your ex-spouse from the application. If you don't, your subsidy will be calculated on the wrong household size and income.

Step-by-step action plan

1. Find out when your coverage ends. Contact your ex-spouse's employer or benefits administrator to get the exact date your coverage terminates. This is day one of your 60-day SEP.
2. Get your COBRA election notice. Review the premium amount and the 36-month maximum. Keep this as a backup option even if you plan to go with a marketplace plan.
3. Estimate your post-divorce annual income. Include wages, alimony (if taxable), investment income, and any other MAGI sources. Do not include child support. This determines your marketplace subsidy.
4. Shop for a marketplace plan. Ask Nora to compare plans based on your individual income and household size, or go directly to HealthCare.gov (or your state's exchange). Select "loss of coverage" as your qualifying event.
5. Compare total costs, not just premiums. Look at deductibles, copays, out-of-pocket maximums, and whether your doctors and prescriptions are covered. If your income qualifies you for cost-sharing reductions, a Silver plan will often give you the best overall value.
6. Address children's coverage. Determine which parent will carry the children based on the divorce decree. If you're the covering parent, include them in your marketplace household. Check CHIP eligibility if your income is low.
7. Enroll and pay your first premium. Coverage won't start until you pay. If you enroll before the 15th of the month, coverage generally starts the 1st of the next month.
8. Set a calendar reminder for tax season. You'll need to reconcile your premium tax credit on Form 8962. If you had marketplace coverage while married earlier in the year, the reconciliation can be more complex.