As the divorce rates rise, a North Carolina company, SafeGuard Guaranty Corp. is now offering couples divorce insurance. Here's how it works:
The casualty insurance is designed to provide financial assistance in the form of cash to cover the costs of a divorce, such as legal proceedings or setting up a new apartment or house. It is sold in "units of protection." Each unit costs $15.99 per month and provides $1,250 in coverage. So, if you bought 10 units, your initial coverage would be $12,500 and you'd be paying $15.99 per month for each of those units. In addition, every year, the company adds $250 in coverage for each unit.
Then, if you get divorced and your policy has matured, you would send them proof of your divorce. In return, you will receive a lump sum of cash equivalent to the amount of coverage you had purchased.
I'm not so sure this is a good idea. Often times, people on their way to divorce itself don't have money to pay for the basic necessities of life (really!) and to support their kids, let alone the insurance premium for divorce insurance. Also, wouldn't it be better to spend the money allocated for the premium on a more important living expense such as for a co-payment to see a doctor or for gas money?
In California, there are other options to recoup the money spent on an actual divorce proceeding. For one, if you are the spouse who does not earn any income and your partner earns significant income, the non-employed spouse can request attorney fees and costs in accordance with one party's need and the other party's ability to pay (Family Code Section 2030). If you own property, a family law attorney's real property lien can be filed against your community property interest to secure your attorney fees and costs incurred.
At any rate, if divorce insurance is implemented, it will be interesting see what people have to say about it.
For information on filing a divorce proceeding in Orange County, Los Angeles County, San Bernardino County or Riverside County, contact an Orange County divorce lawyer for assistance.
