The majority of marriages in the United States are destined to fail. Whether or not that’s a sign of a failed institution is up to you — but it makes sense to plan for something so common. We procure additional policies when a home might flood or burn or be damaged in an earthquake, and those outcomes are far less likely than a divorce. So is it possible to obtain divorce insurance? Technically, no. But there are steps to take to mitigate the fallout from a divorce.
There are a few obscure policies here and there. A company called SafeGuard Corp. offered divorce insurance aptly named WedLock. Of course, the requisite parameters of the insurance looked different from normal insurance because divorce is so common. Couples were required to have been married for at least four years before taking out a policy due to divorce, but after those four years had passed, WedLock would kick in and add $250 of additional coverage to the original $1250 policy each year. The monthly premiums started at only $16.
For most people, that kind of coverage isn’t really feasible. This is especially true since there are other types of insurance that, while they don’t protect against divorce, do protect against some consequences of divorce.
Matteucci Family Law hinted that newly married couples might consider a prenuptial agreement. Although it can put stress on new couples, it can also reduce the financial impact of a divorce while creating an equitable arrangement if things don’t work out.
Another option is to write up a divorce settlement to decide what will happen in the event of a divorce before the marriage even takes place. This would mostly cover division of assets or child custody in addition to alimony or child support (if children are in the picture).
Finding your own health insurance pre-split is important. There might be employee benefits where you work that could save you some money.
You can also likely find policies to cover certain types of financial loss or protect certain assets in the event of divorce. These policies could conceivably cover legal fees, counseling, cost of living changes, etc.
Not sure what applies to you? If you’re thinking about divorcing a spouse but don’t have any protections already in place — and you’re willing to be patient and wait — then there are a few steps to take before you drop the hammer. First, talk to a financial consultant about assets and how to protect your money. Second, talk to a divorce attorney about how to protect assets before you decide to divorce.
The average cost of a divorce is over $12,900. The divorce is about more than just signing a piece of paper. It involves strenuous legal work that might last longer than you think. You might not get everything you think you deserve, because both sides will want an equitable solution — which means all your assets won’t necessarily be split down the middle.