Marriage and divorce have implications for your employer-provided benefits. It is important to keep them in mind while dealing with more immediate aspects of a change in marital status. You must formalize any desired changes in writing by signing the appropriate forms. Consider the following:
Beneficiary designations determine who benefits from your securities in the event of your death. At the least you need to review your provision for pension and life insurance on the University group policies. Complete any necessary paperwork in the benefits office to update your record; a copy will remain on file there. Additionally you should consider other life insurance policies such as through professional groups, banks, credit unions, credit cards, individual brokers, etc. You may also have designated beneficiaries of non-insurance products such as bank accounts, annuities, IRAs, mutual funds, stock accounts, and the like.
Insurance coverage eligibility depends on family status also. Notify your health insurance provider via the benefits office of any changes immediately. Spouses and stepchildren may be covered effective the marriage date. A divorced spouse has the privilege under University policy to remain on the group plan as an individual subscriber but not as your dependent. Dependent children’s coverage also may be affected, including specific court orders regarding responsibility for coverage. Your pre-tax premium options may be affected by changes in marital status. Again, documentation of any changes in coverage will remain in the benefits office.
Federal law dictates pension rights of spouses. Generally, a spouse is entitled to half the pension accumulation. Waivers of spousal rights and special settlements are possible. If your marital status changes be sure that you understand your rights and obligations. Keep your beneficiary designation current, and copies in the benefits office.
Tax Withholding. Check your W-4 and NC-4 when your marital status changes. You may need to increase or decrease your withholding allowances.