Divorce Insurance Helps Keep You Liquid After Divorce – What is It?

Divorce is Expensive – But It Need Not Bankrupt You

Both parties so often lose out emotionally and financially.  It need not be that way.  Divorce insurance is a way to get cash in your hands once through the divorce process.  Whether you hire a lawyer or not, the cost of getting divorced can be incredibly high.  After all, the assets you and your spouse accumulate are divided to some degree which leaves you both worse off financially than when together.

What if you could emerge from divorce with cash?  Now you can if you purchase divorce insurance.

If you’re thinking about buying divorce insurance today and filing for divorce tomorrow – you won’t get paid.  It doesn’t work like that.  One popular divorce insurance product requires that you not get divorced for 4 years from the date you purchase your policy.  This means most people who qualify aren’t seriously thinking about getting divorce because they won’t wait 4 years simply to cash in on a policy.  However, if you take a rational approach to marriage and marriage statistics, there are unfortunately relatively large odds you could get divorced.  Especially if you’re on your second or third marriage (divorce increase for second and then third marriages).

What’s the chance you’ll get divorced?

Use this divorce probability calculator (it’s free) to learn the approximate odds you could get divorced.  Chances are you’ll be surprised.  It doesn’t mean you will get divorced, it simply tells you the odds of getting divorced based on accumulated statistics.  You anonymously input your circumstances, and the divorce probability calculator spits out the probability of someone in your situation getting divorced.

Can parents buy divorce insurance for their kids?

Yes.  Many couples won’t take the rational step of buying divorce insurance if the statistics dictate divorce is probable.  That’s why parents of children can take out divorce insurance policies on their kids in the event divorce ensues.

How much cash can you expect to receive from a divorce insurance policy?

That entirely depends on how much divorce insurance you buy.  You can buy a small policy costing $15.99 per month, but then the payout isn’t going to set you for life financially.  The $15.99 policy is 1 unit of divorce insurance.  The more units you buy, the larger the payout (aka the divorce insurance benefits).

Here’s how the payouts work in detail

Each unit (costing $15.99 per month) will pay you upon divorce (after the 4 year waiting period) $1,250.  $1,250 is the minimum payout.  Each year after the waiting period that you remain married, your payout benefit increases $250 per unit.  The premiums you pay each month do not change.

Obviously 1 unit paying out $1,250 isn’t a ton of money.  But that’s only one unit.  You can buy as many units as you like.  If you buy 20 units, the minimum payout (after the 4 year waiting period) is $1,250 X 20 = $25,000.  Now that’s a decent sum of cash to help relieve the cost of divorce.

20 units will cost you $319.80 per month.  Over 4 years you’ll pay $15,350.40 for 20 units, but stand to receive $25,000 if you get divorced (at the 4 year mark after buying your divorce insurance policy).  The longer you remain married, the bigger your payout grows.

The fact of the matter going through divorce can be costly.  With divorce insurance you’re simply paying a relatively small amount to cushion the financial blow of divorce if it ever comes to it.

If you think about it, divorce insurance is a win/win.  If you don’t get divorced, then you’re more fortunate than many.  Divorce is an awful process and event.  If you do get divorced, and you insured for it, then you’ll be left in a better financial position compared to not having it.

Can you get a shorter waiting period?

Yes.  You can buy what is called an Accelerated Maturity Rider from WedLock Divorce Insurance which reduces the 4 year waiting period to 3 years.

What happens if you get divorced before the 4 year waiting period?

You can purchase a Return of Premium Rider which returns all your premiums (less State premium taxes paid) if you get divorced before the WedLock Divorce Insurance policy.

Click Here to Apply for Divorce Insurance

Divorce Probability Calculator – What Are Your Chances of Getting Divorced

Nobody likes to think they’ll get divorced.  Even people who enter into prenuptial agreements often don’t actually think they’ll get divorced.  However, the statistics can be startling regarding divorce rates.  That said, some people and their circumstances are more likely to get divorced.

Do you want to see the probability of someone in your circumstances getting divorced?  If so, click here to use a comprehensive divorce probability calculator (it’s free).  Keep in mind this divorce probability calculator is not 100% accurate – it uses existing statistics which can never 100% accurately predict the chances of you getting divorced.  However, it’s an interesting tool to get an idea and may help you decide whether, based on the statistics, getting divorce insurance is a good decision for you.

This divorce probability calculator let’s you anonymously enter in facts about your situation, from which the calculator using existing statistics, will calculate the probability of you getting divorced.

The facts you’ll need to input into the divorce probability calculator are as follows:

  • Number of past marriages;
  • Your race
  • Whether your are employed and if so, part time or full time;
  • Your family income;
  • Age;
  • Religion;
  • How important practicing your religion is to you;
  • Your level of education attained;
  • Whether your parents are still together or divorced;
  • Whether you were ever forced or coerced to have sex before getting married;
  • Where you live in the USA;
  • Your preference regarding conflict and how you deal with conflict;
  • Drug and/or alcohol use;
  • Whether you have a mental illness history such as depression;
  • The number of children you had at the time your married, if any;
  • The difference in age between you and your spouse;
  • Whether you and your spouse are the same race or different race;
  • Whether you and your spouse (or with another person) lived together before getting married; and
  • When you and your spouse had your first child – i.e. before or after getting married.

Click Here to Use the free Divorce Probability Calculator

Who Can Buy Divorce Insurance?

If you’re married and you would like to insure yourself, you can.  You can buy divorce insurance for your spouse and your spouse can buy it for you.  You can also buy divorce insurance for another person.  For example, a father can buy divorce insurance for his daughter.  The father remains the policy holder while his daughter is the beneficiary.  Beneficiary means the daughter receives the insurance money payout upon her getting divorced (assuming the divorce occurs after the waiting period – 3 or 4 years – depending on the policy you buy).

Can you pay divorce insurance premiums with a credit card?

If you go with WedLock Divorce Insurance you can pay with a credit card.  They don’t accept cheques or money orders.  The easiest way is to simply dedicate your credit card or debit card to pay your monthly premiums.

Moreover, divorce insurance with WedLock is set up for your annual policy renews automatically.  As long as you pay your premiums, your policy remains in place in the event you get divorced.

Will the premiums increase?

Not with WedLock Divorce Insurance.  Your premiums remain “as is” for life or until you make a claim.  Each year after your waiting period, your premium value increases $250 per unit.  This means the longer you’re married, your divorce insurance increases in value.

Fast Access to a Prenuptial Lawyer for a Prenuptial Agreement – Find Out How

You know the saying:  “married badly, divorced well.”

If your marriage ends, do you want your spouse quipping that cute phrase to everyone … or even thinking it?

Worse yet, the income and assets YOU built up disappear over night all because your marriage didn’t work out.

Or, do you have an ex who this applies to and you want to prevent it ever happening again?

When you consider the divorce statistics these days (especially for second and third marriages), it’s little wonder anyone making significantly more money than their significant other doesn’t get a prenuptial agreement with an experienced prenuptial lawyer.

Yes, I understand going to a prenuptial lawyer for a prenuptial agreement can’t be the easiest subject to bring up with your significant other.  But, unless you want to preserve your wealth and stem the flow of your income going to spousal support if your marriage ends, then a prenuptial agreement is critical.

These days, however, more and more people are more understanding about prenuptial agreements and the fact they are often necessary.  Most people in our society are more sophisticated about such matters given the explosion in information distribution.  In fact, as TV, movies, and other media openly talk about prenuptial agreements – what was once a difficult subject to raise in a couple relationship, is now much more easily discussed.

If you make decent money and/or have significant assets you don’t want to lose if your marriage ends, then it’s time to resolve to discuss seeing a prenuptial lawyer fast.

Here’s the deal – you don’t have to be “rich” in order to get a prenuptial agreement.  The point of a prenuptial agreement is to preserve what you earned and built up.  Many couples marry where one spouse earns and owns much more than the other spouse at time of marriage.  After all, people marry later in life than 30 years ago.  If you’re marrying in your thirties or forties (or are entering a second or third marriage), you could be making six figures and own some significant assets.  Your spouse may have nothing.  Think about protecting your income and assets with a prenuptial agreement AND divorce insurance.

Where to Find a Prenuptial Lawyer?

This is the very cool part – you can hire a lawyer who prepares prenuptial agreements through an online service.  I’m not talking about just any online prenuptial lawyer service – I’m talking about the giant of online legal services.  I’m talking about LegalZoom.

Ever hear of Robert Shapiro the lawyer? He’s a co-founder of LegalZoom.

You don’t have to go make the rounds to your local family lawyer and wait weeks or months for a prenuptial agreement anymore (and pay your local prenuptial lawyer more than a $1,000).

Instead, go to LegalZoom, (you’ll see “prenuptials” toward the bottom on the left), open an account, talk to an actual prenuptial lawyer who does this for a living, fill out a prenuptial agreement questionnaire, then sit back and wait a few days to receive your prepared prenuptial agreement.

Don’t think that because you’re using an online service that no actual prenuptial lawyer will be involved.  That’s the beauty of LegalZoom.  An actual experienced prenuptial attorney will be totally involved in the preparation of your prenuptial agreement.  This a lawyer who does a lot of prenuptial agreements – probably more than a local family law lawyer.  But you pay much less and the speed is incredible.

In fact, talking about speed, you can get a prenuptial agreement completed in 2 business days with LegalZoom’s expedited prenuptial service.  So, if you’re under the gun to get this agreement ready and you want an experienced prenuptial lawyer involved, check out LegalZoom prenuptial services.

Divorce Insurance vs. Prenuptial Agreements – What’s the Difference?

Here’s the gist: you can enter into a prenuptial agreement AND buy divorce insurance.  Both serve different functions.

A prenuptial agreement intends to set out how assets will be divided upon divorce.  A prenuptial agreement is not always 100 percent binding, but courts often do enforce them.

Divorce insurance, on the other hand, is an insurance vehicle where you receive a stipulated amount of money upon getting divorced.  The amount of money you receive depends on the policy you purchase.

Another way of looking at is prenuptial agreements deal with splitting up property while divorce insurance is unrelated to the asset division.  Instead, divorce insurance simply pays out a stipulated amount to an insured.

Whether a couple has millions of dollars or no money, if one or both spouses have a divorce insurance policy, the policy pays (after the stipulated waiting period) regardless of the outcome of the asset division.

Moreover, even if a court sets aside a prenuptial agreement, the divorce insurance is unaffected.

The key point is that prenuptial agreements and divorce insurance are totally unrelated to each other except both attempt to deal with the financial issues surrounding divorce.

How Much Divorce Insurance Can You Buy?

If you’ve checked out my article Divorce Insurance Helps Keep You Liquid After Divorce – What is It? you’ll have learned about divorce insurance generally.  Now it’s time to get down to one key detail remaining on your mind: how much divorce insurance can one person buy?

Divorce insurance is a very new insurance offering.  WedLock is the divorce insurance I recommend given they are innovators in the divorce insurance offerings.

If you decide to go with WedLock, you can buy up to 200 units per policy.  This is a $250,000 initial claim value which will grow over time to $1,250,000.  But you can buy more than one policy with WedLock.  In fact you can buy up to a maximum of 4 concurrent policies per person for a total maximum initial coverage of $1,000,000 which could grow to the maximum of $5,000,000 after 25 years.

Of course you don’t need to buy this amount of divorce insurance.  You can get coverage for as little as $15.99 per month which if you collect (due to getting divorced and that divorce occurs 4 years post policy start date), you receive $1,250.  This is the smallest policy available from WedLock.  Note, the $1,250 benefit grows each year once your waiting period is over.

There you have it.  You can buy a policy as small as $1,250 in benefits or up to 4 policies that could potentially grow to a maximum of $5,000,000 after 25 years (that’s all 4 policies together).

Time Magazine Features Divorce Insurance Coverage – What’s This About?

The September 13, 2010 issue of Time Magazine featured divorce insurance by WedLock Divorce Insurance in an article titled “Making Divorce Pay.”  The Time article authored by Belinda Luscombe briefly sets out what exactly WedLock Divorce Insurance offers, how much it costs, and who qualifies for a policy.

In a nutshell, you don’t collect on the policy until the waiting period is over – which is at least 4 years.

The good news, however, is a divorce insurance policy costs as little as $15.99 per month.  You can buy a policy only for you, or each spouse buy a policy.  Parents can buy a divorce insurance policy for their kids as well.

WedLock Divorce Insurance was founded by John Logan who went through his own divorce.

Divorce is so difficult on an emotional and financial level.  For emotional help, there’s counselling; for financial ease-of-pain, there’s divorce insurance by WedLock Divorce Insurance.

Time Magazine, being a huge global publication, also featured a quote from a relationship coach who suggests that perhaps insuring for divorce is not as prudent as working on your marriage.

The following is my own commentary – and is not anything covered in the Time Magazine article titled “Making Divorce Pay.”

Perhaps insuring for divorce won’t necessarily help your marriage, but it doesn’t necessarily follow you will get divorced.  The fact is getting divorce is exceptionally expensive.  Given the odds of divorce these days (find out your chances of getting divorced with this divorce probability calculator), it seems to me that insuring for an event that could realistically happen to any couple is a prudent financial step to take.

Consider your financial position if you have to pay $30,000 or more for legal fees.  After asset division and legal fees on top of that, most couples will be considerably worse off financially.

There’s no need to disclose the fact you buy divorce insurance, unlike entering into prenuptial agreements.  It seems to me that more and more couples realize that marriage is an economic partnership as much as it is an emotional and romantic partnership.  If the partnership doesn’t work on an emotional level, it doesn’t hurt to take steps to soften the financial blow divorce may deliver by getting divorce insurance.