It is important to distinguish between a former spouse’s right to remain on your health plan and your ability to reimburse that individual’s HSA-eligible expenses tax-free.

Under a divorce decree (or court order of separate maintenance prior to a divorce), the court may require you to provide health insurance for your spouse. If state law, your employer, and your insurer allow it, you can cover this individual on your policy. Otherwise, you may have to purchase and pay for a policy for this individual.

Regardless of how the court handles the issue of coverage, federal tax law dictates how your HSA works.

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