Divorce insurance takes the bliss out of marriage

The idea of taking out divorce insurance that pays out if you have picked the wrong partner to marry and leave sounds great if not a little far-fetched.

But the first US-style divorce policies are now available in the Britain.

Divorce Cover is a US firm that has offered get-out-of-marriage-quick insurance in the States for five years.

The policies are designed to cover the costs of breaking up that can cripple partners who decide to split and seek new lives for themselves.

At £10 for £780 of cover, the policy is only worthwhile for couples who will not qualify for legal aid – which cuts in if they have funds of less than £8,000.

Divorce insurance has a bedding-in period that bars claims for four years – the idea is couples can’t marry and split just for the money paid out by the policy.

They do get a full refund of any premiums paid if they do divorce in the first four years of the policy.

To help couples decide whether to buy, the web has neat divorce probability calculators that work out the chances of the relationship ending by asking questions about family background, race, religion and children.

Now may not be the best time to launch divorce insurance.

Statistics show the divorce rate has slumped to 1974 levels and accountants Grant Thornton reckon  couples are stating together because they just cannot afford to break-up due to the country’s economic woes.

Couples with pre-nup agreements can also consider taking out specialist insurance that pays for any legal costs associated with divorce.

Since a landmark court case last year backing pre-nups in English law for the first time, Grant Thornton reports 58% of lawyers have seen an increase in pre-nuptial work as happy but distrusting couples cover their backs and their fortunes.

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2 Responses to Divorce insurance takes the bliss out of marriage

  1. It’s unromantic, but with high divorce rates and the expense of divorce, it certainly makes sense.

  2. Napoleon Sulloway says:

    Divorce causes major issues with health insurance benefits. Many families have employer provided and/or paid for health insurance benefits that cover the entire family. It is not uncommon to see situations where the other spouse is a stay at home parent, with absolutely no access to health insurance benefits, or employed at a job with either no health insurance benefits available or those benefits available at a substantial cost. After a divorce, the spouse with the family health insurance coverage can no longer cover the other parent. They are no longer “family” members who can take advantage of one health insurance policy. How to then ensure that everyone stays insured does become an issue for negotiation and/or divorce litigation.:;

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