Portrait of John K Grubb

Texas Divorce and Prenuptial Agreement

4550 Post Oak Place, Suite 201 • Houston, Texas 77027-3139

Phone: 713-877-8800 • Fax: 713-877-1229

Weird? Now there’s divorce insurance

When people in Houston get married, they usually think that they will be with each other forever. Divorce doesn’t enter the happy couple’s mind when they stand before family, friends, and the Supreme Being and promise to love, honor, and respect each other.

They are sure they will be the anomaly in the statistics. Or they don’t think about statistics at all.

According to the CDC, a little more than half of US marriages end in divorce. The statistics are not lost on some insurance companies, as they have been offering divorce casualty insurance since 2005.

It sounds strange, but the insurance companies are now making the news. The companies are pitching the casualty insurance as protection against financial loss if a marriage ends in divorce. There are no restrictions on who can purchase the policies, so having been divorced previously doesn’t disqualify a person from coverage.

Getting a divorce can range up to $35,000 or more, depending on location and complexity of the divorce. The casualty insurance pays out if a marriage ends, allowing the insured funds to cover legal expenses and even getting back on one’s feet, depending on coverage purchased.

The insurance is sold in units. Each unit provides a certain amount of coverage, usually around $1,250. Additional units are purchased until the desired coverage is reached. For example, if a person wanted $125,000 in coverage, he or she would purchase 100 units of divorce insurance.

The cost of the units are relatively inexpensive, approximately $16 per month. The $125,000 coverage will run about $1,600 each month, but don’t think about doing a Brittany Spears or Kim Kardashian marriage. These policies have a maturation period, usually 4 years or more. If a marriage ends before maturation, you’re out of luck.

There’s a downside to marriage insurance. In some instances, you might be better off putting the premiums in a savings account because the return on the policy decreases the longer you remain married. Also, the majority of divorce insurance companies aren’t guaranteed by the state or federal government. This means that if the company goes out of business, most often you are out of your money.

The good news is that for the past several years, the number of divorce cases heard by Houston’s Family Court has been declining.

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