Seperation and Divorce

This can be a very painful and difficult time in your life. Divorce involves many decisions that will affect your future. No brochure or booklet can walk you through a divorce. However, Deseret Mutual is committed to easing a portion of the burden that can come from uncertainty. What will happen to my benefits? What portion of my savings and retirement will I be required to share with my former spouse? Here are some answers that might clear up some of the confusion.

Things to Consider

• Don't be hasty. If you drop your spouse or dependent children from your insurance, you cannot re-enroll them until the next Open Enrollment which means their coverage will not go into effect until the following January 1.
  
  
• You cannot change your savings beneficiaries until the divorce is final and your alternate payee has received his/her portion of your account, if any.
  
  
• The law requires that we freeze your Thrift Plan account while you are separated. Therefore, during that time we cannot approve requests for loans or withdrawals. Exceptions may apply. Please contact our savings department.
  
  
• If this change involves a move, refer to our brochure entitled "Moving."
  
  

Frequently Asked Questions

Q. Why does Deseret Mutual need a copy of my divorce decree?

A. Deseret Mutual is required by law to determine whether or not we must split your savings/retirement benefits with an alternate payee. We also need the decree to change your marital status. Your divorce decree may also stipulate who has financial responsibility to provide insurance for dependent children.

Q. Why does the divorce decree have to be court-certified?

A. The court-certified stamp on the divorce decree helps us verify its authenticity.

Q. What will happen to my savings account and retirement benefit?

A. It all depends on your divorce decree. You may be required to share a portion of your savings and/or retirement benefits with your former spouse. And until we can determine whether or not an alternate payee is entitled to a portion of your account, you cannot take withdrawals, loans, change your beneficiaries, or retire. It is critical that you send your divorce decree (including a QDRO, if needed) to Deseret Mutual as soon as you can. Our legal department can look at a draft of your QDRO and help your attorney make sure it will qualify before you take it to court. This may save you court and attorney costs.

Q. If my divorce decree requires that I provide insurance for my former spouse, can I insure him/her through Deseret Mutual?

A. Generally speaking, no. However, your former spouse may be eligible for up to 36 months of COBRA continuation coverage. After your former spouse receives the COBRA packet from Deseret Mutual, he/she will have 60 days to enroll. Call us for more information.

Q. Can I insure my children even if they will be living with my former spouse?

A. Yes.

Q. When will my spouse's insurance coverage terminate?

A. Your spouse's coverage will end on the last day of the month in which he/she no longer qualifies as a dependent.

Checklist

• Send us a court-certified copy of your divorce decree (complete, with attachments)
• Send us a court-certified copy of the Qualified Domestic Relations Order (QDRO), if one is specified in your divorce decree
• Consider updating your exemptions on your IRS W-4 form, available from your employer
• Notify your employer if you are changing your name, if applicable
• Update your beneficiary information for life insurance and your Thrift Plan, as well as your retirement benefit, if retired
• Call us if you want to revoke your former spouse's access to your health information
• Modify your will or trust if you have one
• Consider adjusting your FSA annual election within 60 days of the divorce
• Call MetLife or Liberty Mutual if you have group home, auto, or long-term care insurance to arrange for separate billing for you and your former spouse

This information is provided as a service to help you make informed decisions. Nothing in this information should be considered legal, financial, investment, or medical advise. For a complete description of the plans. please refer to your Benefits Handbook. As with any major life event, you should consult with qualified prefessionals of your choice who can provide you with appropriate counsel and advise.