HSA / ex-wife

[Cross Hair]

What is the name of your state (only U.S. law)? Ohio

When our dissolution is final I know I must let my wife remain on my health insurance for up to 6 months. But what to do about the deductible? My company has an HSA plan and the deductible is $3000.00 person/$6000.00 family. Will she still be able to draw off the HSA account to pay her deductible, the bank that manages the account doesn't seem to have the answer. She is into horses and gets hurt a lot and I don't want her drawing off that account if I can stop it.

Cooper

 

[mistoffolees]

What is the name of your state (only U.S. law)? Ohio

When our dissolution is final I know I must let my wife remain on my health insurance for up to 6 months. But what to do about the deductible? My company has an HSA plan and the deductible is $3000.00 person/$6000.00 family. Will she still be able to draw off the HSA account to pay her deductible, the bank that manages the account doesn't seem to have the answer. She is into horses and gets hurt a lot and I don't want her drawing off that account if I can stop it.

Cooper

It will depend on the exact wording of the divorce decree. If it simply says that you have to keep her insured, but other wording might mean you'd have to pay the deductible.

Please post the exact wording.

 

[LdiJ]

What is the name of your state (only U.S. law)? Ohio

When our dissolution is final I know I must let my wife remain on my health insurance for up to 6 months. But what to do about the deductible? My company has an HSA plan and the deductible is $3000.00 person/$6000.00 family. Will she still be able to draw off the HSA account to pay her deductible, the bank that manages the account doesn't seem to have the answer. She is into horses and gets hurt a lot and I don't want her drawing off that account if I can stop it.

Cooper

Are you sure that you are correct about that? Most employer plans do not allow for that. Most employer plan only allow for Cobra, and Cobra goes for 18 months or more.

However, any accumulated money in the HSA account, at the time of the divorce filing (or perhaps the divorce being final) would be a marital asset, subject to division.

 

[Cross Hair]

When I spoke with our insurance carrier I was told me my wife would be entitled to 6 months of what he called state continuation, where she was able to remain on the current plan. After that she would have to go on a Cobra plan or find other coverage.

I will look over the agreement tonight and see the exact wording. The HSA account isn't a huge amount (around $3,500) and we elected not to divide that money.

What makes this confusing is the health plan and the HSA are separate plans run by different companies. Health care plan is with Medical Mutual and the HSA is with a local bank . Neither group has an answer for me.

 

[mistoffolees]

When I spoke with our insurance carrier I was told me my wife would be entitled to 6 months of what he called state continuation, where she was able to remain on the current plan. After that she would have to go on a Cobra plan or find other coverage.

I will look over the agreement tonight and see the exact wording. The HSA account isn't a huge amount (around $3,500) and we elected not to divide that money.

What makes this confusing is the health plan and the HSA are separate plans run by different companies. Health care plan is with Medical Mutual and the HSA is with a local bank . Neither group has an answer for me.

If the decree doesn't say anything about the HSA, then I think Ldij is correct. It's a marital asset and would be split (unless you reach an agreement otherwise). That means that she would be entitled to $1750 of it and you the rest. She could NOT use up the full $3500.

I'm confused about timing. Most HSA plans are based on calendar year. If so, you only have a few weeks left on the old plan and then you'll start a new plan year. If you've already filed for divorce, you could start the new year solely in your name and then you wouldn't have to split it.

 

[LdiJ]

If the decree doesn't say anything about the HSA, then I think Ldij is correct. It's a marital asset and would be split (unless you reach an agreement otherwise). That means that she would be entitled to $1750 of it and you the rest. She could NOT use up the full $3500.

I'm confused about timing. Most HSA plans are based on calendar year. If so, you only have a few weeks left on the old plan and then you'll start a new plan year. If you've already filed for divorce, you could start the new year solely in your name and then you wouldn't have to split it.

HSA money rolls over...therefore he would really have to start a new HSA unless the old one was emptied. However, emptying it (unless for actual medical expenses) is a taxable event.

 

[Ohiogal]

What is the name of your state (only U.S. law)? Ohio

When our dissolution is final I know I must let my wife remain on my health insurance for up to 6 months. But what to do about the deductible? My company has an HSA plan and the deductible is $3000.00 person/$6000.00 family. Will she still be able to draw off the HSA account to pay her deductible, the bank that manages the account doesn't seem to have the answer. She is into horses and gets hurt a lot and I don't want her drawing off that account if I can stop it.

Cooper

SAYS WHO? After the dissolution is final you can drop your ex from insurance. You will no longer be responsible for her health insurance after the dissolution is final unless your separation agreement states that you are. SHE can purchase her own COBRA insurance.

 

[Ohiogal]

If the decree doesn't say anything about the HSA, then I think Ldij is correct. It's a marital asset and would be split (unless you reach an agreement otherwise). That means that she would be entitled to $1750 of it and you the rest. She could NOT use up the full $3500.

I'm confused about timing. Most HSA plans are based on calendar year. If so, you only have a few weeks left on the old plan and then you'll start a new plan year. If you've already filed for divorce, you could start the new year solely in your name and then you wouldn't have to split it.

Not in Ohio he can't. Because that would be a change in the health insurance and he could be found in contempt for making that change while a dissolution is pending.

 

[mistoffolees]

Not in Ohio he can't. Because that would be a change in the health insurance and he could be found in contempt for making that change while a dissolution is pending.

Are you positive about that?

HSA is separate from health insurance and is not treated like health insurance for tax or other purposes. Seems to me that he could open a new HSA just like he could open a new IRA or any other savings account.

I agree that he couldn't change his health insurance, but that's not what I was suggesting.

 

[Ohiogal]

Are you positive about that?

HSA is separate from health insurance and is not treated like health insurance for tax or other purposes. Seems to me that he could open a new HSA just like he could open a new IRA or any other savings account.

I agree that he couldn't change his health insurance, but that's not what I was suggesting.

He would be changing a benefit that is available to the wife at this juncture by making it unavailable to her. He can't do it.

 

[mistoffolees]

He would be changing a benefit that is available to the wife at this juncture by making it unavailable to her. He can't do it.

Wouldn't that depend on whether HSA is a benefit or a savings account? It is sold and treated as a savings account, albeit a tax-free one.

Maybe it depends on whether it's an employer-sponsored account or a separate one?

 

[Ohiogal]

Wouldn't that depend on whether HSA is a benefit or a savings account? It is sold and treated as a savings account, albeit a tax-free one.

Maybe it depends on whether it's an employer-sponsored account or a separate one?

Then it could be seen as attempting to dissipate marital assets. It is a MARITAL benefit/asset either way.

 

[LdiJ]

Wouldn't that depend on whether HSA is a benefit or a savings account? It is sold and treated as a savings account, albeit a tax-free one.

Maybe it depends on whether it's an employer-sponsored account or a separate one?

Ok....lets look at this from another point of view. You cannot open an HSA unless you have a high deductible medical insurance policy. If you have a low deductible medical insurance policy, then you may not open an HSA.

The two go hand in hand. You cannot have one without the other. Therefore I think that OG is right on that issue. It would be changing the medical insurance before the dissolution was final.

 

[mistoffolees]

Then it could be seen as attempting to dissipate marital assets. It is a MARITAL benefit/asset either way.

I still don't get it - we don't seem to be talking about the same thing.

My comment was based on the assumption that the new year starts Jan 1. I suggested leaving the old one untouched and opening a new one beginning in the new year.

Since he'd be opening the new one with non-marital assets (he already filed for divorce) it seems that there would be nothing to stop him from opening the new account in his own name.

The old account is a marital asset, but he wouldn't be dissipating it. He'd be leaving it as it is.

So just what is wrong with him opening a new HSA in the new year?

 

[Ohiogal]

I still don't get it - we don't seem to be talking about the same thing.

My comment was based on the assumption that the new year starts Jan 1. I suggested leaving the old one untouched and opening a new one beginning in the new year.

Since he'd be opening the new one with non-marital assets (he already filed for divorce) it seems that there would be nothing to stop him from opening the new account in his own name.

The old account is a marital asset, but he wouldn't be dissipating it. He'd be leaving it as it is.

So just what is wrong with him opening a new HSA in the new year?

Sorry but it is marital assets. HE IS STILL MARRIED. Filing for divorce doesn't change that. Marital assets count until a decree of legal separation OR a decree of divorce. Debt is different as a restraining order is put into place restricting either party from acquiring debt in the name of the other from the date of filing. Assets are assets. Assets acquired during the marriage (before the divorce) are a marital asset. In Ohio. The OPs state. If he won the megamillions lotto -- damn I gotta buy my ticket -- tonight, she would be entitled to half if he bought the ticket with marital assets (his income).