Jump to content

Affordable Care Act & Divorce vs. Child Custody Question


Guest jbergstrom
 Share

Recommended Posts

Guest jbergstrom

As a member of a professional development round-table (including planners, attorney's, and other members engaged in the divorce profession), every so often a benefits-related question surfaces and no one knows the answer. Such is the case with the question below. So I thought I would post it here in the hopes someone can enlighten me and I can share it with the group:

The question is if dad has a plan through work that is available to cover the children, if we give mom the deductions for the kids, and she is the one mandated to provide the insurance[via the divorce decree], and the kids are covered under dad's [employers] plan, and could continue to be covered, does that mean they have to stay on his plan? If he has the deductions, he gets no subsidy due to his high income. If mom gets the deductions, it's free insurance for her and the kids based on her low income. But does the availability of the dad's plan trump everything and mean they have to go with his high cost, high deductible plan? If so does mom get big subsidies as a result?

It seems to me this is the default situation we will face - low income custodial mom, high income dad with benefits.

Thank you for any insights or thoughts,

Link to comment
Share on other sites

The children do not have to stay on dad's plan and can qualify for subsidies.

The final regulations under IRC 36B provide that children eligible for coverage because of their relationship to a parent but who are not tax dependents of that parent are not disqualified from receiving premium tax credits.

Sounds like you divorce attorneys came up with a pretty good plan.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...