Couples plan nearly every detail of their weddings, but, though you can’t blame them, most couples fail to budget for divorce. The cost of a divorce varies across the country, but one thing remains true, divorce is very very expensive. The exact cost can vary greatly depending on many factors including the martial estate and if there are any minor children, but it is estimated that a divorce can cost between $10,000 and $20,000. In today’s blog, your Western PA divorce lawyers provide you with some details about a unique way to finance a divorce.
Nobody enters a marriage expecting that it will fail. Even the most cautious, well-informed couples are optimistic about the prospect of their marriage lasting for the long haul. However, unlike for fires and floods, there’s no such thing as “divorce insurance” to cover the bill in the event of the unthinkable. … Or is there?
Well believe it or not there is. Currently, Yangguang Life insurance company (based in China) is the only company that offers “divorce insurance.” The policies are marketed and sold under the brand name of “WedLock Divorce Insurance.”
On the company’s website they stated that their mission is to, “provide a method for creating financial security for individuals who want to invest in themselves rather than risking their long term financial goals on investments that can go down faster than they go up.”
Additionally, they mention the current divorce rate, 50%, and the fact that of this 50% more than 40%, especially individuals with children, go below the poverty line as a result of the divorce. These staggering statistics are the reason they created this program and they state that they are “aiming to change that trend and how you might be able to help keep more kids out of poverty.”
This divorce insurance is technically a form of casualty insurance; specifically, contractual liability insurance. The policy holder is reimbursed after a marriage (the contract in this case) is dissolved by way of divorce or marriage dissolution. Just like any other casualty, the policy holder submits a claim to the insurance company upon finalization of the divorce.
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. Couples should be cautious though, the policy has strict the “maturation rules.” To prevent that couples who know they’re going to get divorced from signing up, the policies don’t mature until 48 months after their effective date. This means, you can only recover a lump sum of cash equivalent to the amount of coverage purchased through the company if you policy has matured.
If you are facing a Pennsylvania divorce and want to know the options you have to keep costs as low as possible, contact your Pittsburgh Divorce Lawyers at Lisa Marie Vari & Associates.