First, is she being nice and cheery just because she wants to keep the lower insurance cost?
It doesn't matter why, just be thankful she is being that way and enjoy it while it's there
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Secondly, should I allow it to continue even though she is wishing to be completely separated from my in all other regards?
W and I have separated everything except the insurance for the same reason, it's cheaper to have it jointly. We'll have to split it after D, but we'll probably leave it this way until then. Right now W is paying it and then I cut her a monthly check for half of it.
