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

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 requirements have created difficulties. They have led to delays in the processing 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{1}. 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 consequences associated with reestablishing their attorney-client relationships 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 stipulations 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)

{1} Many stipulations and separation agreements, which previously have been signed by the parties to them, have not yet been incorporated into, or made the basis of, a divorce action. Typically, it is when one of those parties seeks to remarry that a divorce may be sought.