British Columbia residents may be interested in a novel idea that one company says might protect individuals from financial difficulty if a divorce occurs. A U.S.-based company is the first to offer “divorce insurance,” allowing couples to pay monthly premiums in order to fund the legal fees that come with a divorce if the couple were to end their marriage.
The owner of the company, who is a divorcee himself, says that he wishes the service had been around when he had been married. As it stands now, a divorce insurance policy would get the couple $1,250 in divorce legal coverage for every $16 paid every month. The couple must also stay married for at least three years in order to be eligible for the benefits payout.
The company may have a product that is worth looking into. Statistics from a 2008 study show that the Canadian divorce rate is around 38 percent before a couple’s 30th anniversary. However, there may be some difficulty in bringing up the subject, particularly at a time of great optimism like the beginning of a marriage. Much like the issue of prenuptial agreements, which may seem similarly unromantic, it may take some convincing and careful dialogue to establish an agreement for such a policy. However, with the potential cost of a divorce may be very high, and this type of insurance may protect both parties’ financial future.
Couples who are looking to get a divorce or separation may find working with a lawyer helpful. A lawyer may be useful in drafting separation agreements or might represent a client throughout the process, including during any negotiations of spousal support and division of family assets.