Understanding Divorce Insurance

According to Wilkinson and Finkbeiner Family Law Attorneys, almost 50% of all marriages in America will end in either separation or divorce. This means that, statistically speaking, you have a relatively high chance of getting divorced yourself. That is where divorce insurance comes into play. While there is no “divorce insurance” coverage product that you can buy, there are some other insurance products that can assist during the divorce process.

Difference Between Insurance Products and a Prenuptial Agreement

This is also known as a “prenup” and it is a legal agreement that states if the marriage does not work out then specified conditions will be met. A prenup is between the two spouses which agree what would happen in the event of a divorce. However, divorce insurance products are an agreement between an insurance company and a person within the marriage that pays a specified benefit in the case of a divorce.

Even though a prenup is a legal contract, a judge can rule that it is invalid if there are circumstances like a person is impaired or coerced into signing it without free coherent will to do so.

Understanding a Marriage Settlement

While there are prenups and insurance policies in place that are intended to cover legal costs, there is also something called a marriage settlement. This is a written agreement that specifies the conditions of the divorce and all of the divvying up between property, custody, support, etc. It happens as the marriage comes to an end rather than before or during. However, a marriage settlement can be outlined within a prenup!

Understanding the Cost of Divorce

The reason that it is important that your prenup or divorce insurance product covers the legal fees associated with your divorce is because they are more pricey than you may think. According to Business Insider, the average cost of divorce is $15,000. Even though this is a good place to understand the average cost, it is important to remember that each divorce case is different. Some being more affordable, and some being way more expensive.

What Should a Divorce Insurance Product Cover?

You want to have a product that covers common divorce costs like child support or alimony payments, legal fees associated with divorcing, potential counseling needs for yourself or children, as well as any financial loss that comes with the divorce. A product that covers these expenses is one that you want to have.


Getting a divorce is a very stressful life event that you may need to deal with. Not only are you emotionally and physically exhausted, but you will need to deal with the financial obstacles that come your way when getting divorced. Luckily, there are tools and products in place that can ease some of burden that you may face when dealing with divorce. You can contact your insurance company to see if they have any products that may assist you or see if you can find resources through the family attorney that you will use.