Insures that parties in an action for divorce are made aware of the potential loss of health insurance coverage where such coverage was obtained through their spouse; repealer

BILL NUMBER:A7561

Title of bill

An act to amend the domestic relations law, in relation to certain matrimonial actions; and repealing certain provisions of such law relat- ing thereto

This measure is being introduced at the request of the Judiciary upon the recommendation of the Deputy Chief Administrative Judge for Matrimo- nial Matters.

This measure would repeal section 177 of the Domestic Relations Law, enacted in 2007 (see L. 2007,c. 412), and replace it with a modified version, to be codified as new section 255, for the purpose of facili- tating its application and making it easier for both Bench and Bar to meet its requirements.

Section 177 was enacted to insure that parties in an action for divorce are made aware of the potential loss of health care coverage where that coverage has been obtained through their spouse. By its terms, judges are required formally to notify both parties to a matrimonial proceeding that, once judgement is entered, they may or may not be eligible for continued coverage under the ex-spouse's health insurance plan depending upon the terms of the plan. The statute also mandates specific language requirements for stipulated agreements, also intended to insure that the parties thereto are aware of their implications for their individual health insurance coverage.

Even in the first few months of implementation, these blanket require- ments have created difficulties. They have led to delays in the process- ing of matrimonial cases; and have potentially complicated the lives of perhaps thousands of individuals who, after having lived for many years subject to the terms of a stipulation/separation agreement relating to their marriage, may now want a divorce. For each of these individuals, it will be necessary that they find his or her former spouse and gain his or her agreement to a modification of the stipulation/settlement so that it complies with section 177 and therefore can be approved by a judge. Quite apart from the logistical difficulties attached to this obligation, which for spouses who have been separated for many years is of questionable or no value, there will be additional financial conse- quences associated with reestablishing their attorney-client relation- ships to re-execute stipulations or amend existing ones. Maybe more importantly, the present statute is generating delays in the processing of divorce actions - delays that could endanger the safety of litigants where underlying issues of domestic discontent or violence exist.

This measure is designed to relieve the unanticipated burdens imposed by section 177 without diminishing its salutary features. It does so by (i) giving judges greater discretion in insuring the time and method of notification of health insurance provisions, and (ii) eliminating section 177's statutorily-prescribed statement for inclusion in stipu-

lations in favor of a more flexible approach to maintaining health care provision awareness. In sum, this measure should guarantee the most efficient processing of divorce actions while achieving section 177's original objective, viz., to insure an awareness of the impact of divorce proceedings upon health insurance coverage, at less cost to and with fewer complications for the divorce litigants the statute sought to protect.

This measure, which would have no fiscal impact on the State, would take effect immediately and apply to all actions in which judgment has not been entered as of such effective date.

2008 LEGISLATIVE HISTORY:

Senate 6899 (Sen. DeFrancisco) (Rules) Assembly 10814 (M. of A. Bradley) (Passed)