Gavin Howe
Common-law marriage is a type of union that is recognized in certain states and countries, and it raises several issues when it comes to insurance coverage. While some states may not recognize common-law marriages, others do, and this recognition can impact insurance eligibility and benefits. This is particularly relevant for employer-sponsored health and welfare plans, where the inclusion or exclusion of common-law spouses can have legal consequences. The dissolution of a common-law marriage, similar to a legal marriage, also brings about changes in insurance coverage. Understanding the impact of common-law marriage on insurance is essential for individuals in such relationships and for employers offering benefit plans to ensure compliance with applicable laws and to avoid potential challenges.
| Characteristics | Values |
|---|---|
| Common law marriage coverage under insurance | In the US, common-law marriage can impact health insurance eligibility and employer benefits |
| Common-law marriage recognition | Eight states and Washington, DC, let couples establish common-law marriages |
| Insurance coverage for common-law spouses | Common-law spouses may be eligible for coverage under a family medical plan as dependents, but it depends on the insurer and state laws |
| Insurance coverage for children of a common-law spouse | Children of a common-law spouse may be covered under a family medical plan if they are dependents, regardless of whether they were born before or after the common law marriage |
| Exclusion of common-law spouses from insurance plans | Self-insured plans may choose to exclude common-law spouses, but they must clearly communicate this in their plan definitions and materials |
| Rights of common-law spouses after divorce | Common-law spouses have COBRA rights to continue health coverage under certain plans after a divorce |
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What You'll Learn
Common-law marriage and insurance: employer-sponsored plans
Common-law marriage can affect eligibility for employer-sponsored insurance plans. While common-law marriage is recognised in eight states and Washington, DC, insurers are subject to state regulation and must adhere to the definition of "spouse" established by the state. The deciding factor in recognising a common-law marriage for enrolment in health and welfare plans is the state in which the marriage was established.
A self-insured plan may choose to exclude parties to a common-law marriage from its definition of a spouse. However, employers that sponsor insured health and welfare plans generally cannot exclude common-law spouses from those plans. In the case of New York, a common-law spouse would be viewed as the legal spouse of the insured, provided that a valid common-law marriage exists. Thus, an insurer may extend coverage to a common-law spouse under a family medical plan.
In Texas, common-law marriage is a valid and legal way to marry, and the marital status of individuals who enter into a common-law marriage is the same as those who obtain a marriage certificate. For couples who choose not to declare their common-law marriage, documents such as lease agreements, tax returns, and insurance may be used as evidence. TRS-ActiveCare permits an employee to cover their common-law spouse as a dependent, provided that a Declaration of Informal Marriage has been filed with an authorised government agency.
Employers should have a consistently applied, non-discriminatory policy when asking for confirmation that a family relationship exists. Employees claiming a common-law marriage should be treated the same as those who have obtained a marriage certificate.
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Common-law spouses' rights under COBRA
COBRA, or the Consolidated Omnibus Budget Reconciliation Act, was passed in 1986 to allow individuals to keep their health insurance for a period of time after coverage would normally terminate. This is particularly relevant for common-law spouses, who may be concerned about maintaining insurance coverage in the event of a separation or divorce.
In the context of divorce, common-law spouses can remain insured on their spouse's work health plan for up to 36 months. This continuation of coverage is triggered by the qualifying event of divorce or legal separation. It's important to note that to continue coverage under COBRA after a divorce, the spouse must have been covered under their spouse's employer's plan prior to the divorce. Once the divorce is finalised, the plan administrator must be notified, and they will provide information about accepting COBRA coverage, its cost, and the rights of the spouse under COBRA.
There are six qualifying events that apply to spouses under COBRA:
- Employee's termination of employment
- Employee's reduction of hours
- Employer's bankruptcy
- Death of the employee
- Divorce or legal separation
- Covered employee becoming entitled to Medicare
In the case of divorce, the spouse has up to 36 months of continuation coverage. If the spouse remarries within this period, they may keep the COBRA coverage as long as they are not covered by their new spouse's health plan. It is important to note that double coverage is not allowed under COBRA law.
While the above information provides an overview of common-law spouses' rights under COBRA, it is always advisable to consult official sources and legal professionals for the most accurate and up-to-date information regarding COBRA rights and regulations.
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Common-law marriage and health insurance portability
Common-law marriage is a marriage established by a couple's conduct and mutual agreement to be married, without the formalities of a civil or religious ceremony. While the specific requirements vary by state, common-law marriages are generally recognised across the United States.
The recognition of common-law marriage has implications for health insurance coverage and portability. Under the Health Insurance Portability and Accountability Act (HIPAA), employees have the right to enrol their spouse and dependent children in their health insurance plan. This right extends equally to common-law spouses, provided that the marriage is valid under state law.
Insurers are subject to state regulation and must adhere to the definition of "spouse" established by the state in which the common-law marriage was established. This means that a common-law spouse can be considered a legal spouse for the purposes of insurance coverage, and they may be eligible for coverage as a dependent under a family medical plan.
However, it is important to note that not all states recognise common-law marriage. For example, New York abolished common-law marriages in 1933, but it will recognise a common-law marriage contracted in another state, provided it is valid in that state.
In terms of health insurance portability, common-law spouses have the same rights as statutory spouses. Under COBRA, an enrolled spouse and any dependents may continue health coverage after certain qualifying events, such as divorce, the employee's death, or the loss of coverage due to reduced work hours. These rights apply equally to common-law spouses, allowing for the portability of health insurance coverage in the event of certain life changes.
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Common-law marriage and dependent children
In the context of insurance coverage, a common-law marriage is typically recognised as a legal marriage. This means that a common-law spouse can be eligible for coverage as a dependent under a family medical plan, and their dependent children can also be covered.
In the United States, the recognition of common-law marriage varies by state. For example, in New York, the state insurance department has issued an opinion stating that a common-law spouse can be covered under a family medical plan as a dependent, and this coverage can also extend to the children of the common-law spouse, regardless of whether they were born before or after the common-law marriage.
In Canada, common-law partnerships are recognised in various legal contexts, including immigration and tax filings. When sponsoring a spouse or common-law partner for permanent residence in Canada, individuals must promise to provide financial support for their dependent children. Additionally, when filing taxes, common-law partners must include each other's information on their tax returns, and the Canada Revenue Agency (CRA) calculates government benefits based on the combined household income. This can impact eligibility for certain tax credits and benefit amounts, including those related to dependent children.
It is important to note that the specific laws and regulations regarding common-law marriage and dependent children may vary by jurisdiction. Therefore, it is advisable to consult local laws and seek legal advice for specific situations.
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Common-law marriage and divorce
Common-law marriages, also called informal marriages, are only legal in some US states. Common-law marriages are formed when two people agree to be married, live together as husband and wife, and represent themselves as a married couple to others.
When it comes to divorce, common-law marriages are treated similarly to traditional marriages. This means that common-law married couples must file for divorce like traditionally married couples. However, a key difference is that common-law married couples must first prove that they were indeed married under the laws of their state, as common-law marriages do not have a paper trail like traditional marriages. This proof often takes the form of evidence of cohabitation, shared finances, or public acknowledgment of the relationship.
The specifics of divorce procedures for common-law marriages vary depending on the state. For example, Texas has a two-year statute of limitations, meaning that if neither party petitions for divorce within two years, it is as if the couple was never married. In Rhode Island, common-law marriages are recognised, and couples must file for divorce as with traditional marriages. However, before filing, couples must work with an attorney to prove that the common-law marriage existed.
It is important to consult with an experienced attorney in the relevant state to understand the specific requirements and procedures for divorcing a common-law marriage.
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Frequently asked questions
No, common-law marriage doesn't exist in the UK. However, cohabiting couples in Scotland have basic rights if their relationship ends.
In the US, common-law spouses are eligible for insurance coverage under family medical plans. However, this may vary depending on the state and the insurance provider's definition of "spouse".
To enrol a common-law spouse in an insurance plan, documentation may be required to prove the marriage. This can include a Declaration and Registration of Informal Marriage or other documents such as lease agreements and tax returns.
Yes, children from a common-law marriage can be covered under their parent's insurance plan as dependents. This is permitted under state laws and insurance regulations.
In certain states, such as Texas, common-law spouses have the same rights as legally married spouses regarding leave benefits and health insurance coverage. However, it is important to review the specific laws and regulations in your state.
