Divorce can come with a hefty price tag, especially if a large amount of assets or child custody are involved. Alberta couples looking to get married may wonder how to protect themselves from the costs and subsequent stress of an expensive divorce should the marriage dissolve. One entrepreneur is offering divorce insurance as an option for these couples.
The insurance industry has discussed the possibility of a divorce insurance since 1970, but the product has not yet been brought to market. Part of the reason is that “divorce insurance” is not a very palatable concept for couples in love. The entrepreneur has thus dubbed his product “marriage insurance,” which may be an easier sell for Alberta couples.
Those who stay married get benefit from the plan in year 25, when they receive a return of their total premiums paid over 25 years plus an investment return of 5.7 percent. In the event of a divorce, the “marriage insurance” product pays a benefit to support legal fees and other break up related costs. The total coverage available depends on the plan a couple invests in and how long the marriage lasts.
The entrepreneur says that one of the common misconceptions about divorce is that it happens to half of all couples. However, according to Statistics Canada data from 2011, just over four in 10 couples divorce. In the United States, only one third of marriages meet this fate. For those who do go through a divorce, advocating for one’s best interests through Alberta family law is necessary. A family lawyer can help with this process.
Source: yahoo.com, “Could marriage insurance take the sting out of divorce?“, Aaron Broverman, Nov. 6, 2017
