Divorce Insurance: Definition, How it Works, Coverage Types and Costs

By  //  April 13, 2023

In these times of turbulence, everyone wants to be sure they are safe and sound in any situation. Whether it is about your employment, health, or personal life, it is great to have some guarantees that success awaits you.

In case this doesn’t come true, you will get significant replenishment in return. This is why you may need divorce insurance. This is the right way to ensure you will be well even if your marriage falls apart. And here is how it works.

What Is Divorce Insurance

When you get married you certainly don’t think about divorce right from the start. But if you want to keep yourself safe from any negative consequences of possible marriage termination in the future, you’d better think of it before or right after the marriage. 

Divorce insurance is a policy that can save you from financial turbulence if a divorce takes place. As long as you cover the policy payments, you will get a great sum to be paid out to you in case you decide to complete a divorce online or terminate your marriage in court. Depending on the conditions of the insurance, you may have divorce-related expenses covered, such as attorney fees, legal payments, and so on. 

Yet, mind that in many cases the policy will act out only if you meet the pre-defined requirements. They may include the length of your marriage, the grounds for divorce, and so many more. And don’t forget about exclusions and limitations that may be applied to your case so that you receive no payments even if the divorce takes place. 

Topic Explanation
Definition Divorce insurance is a type of insurance policy that provides financial protection in the event of a divorce. It is designed to help cover the costs associated with divorce, such as legal fees and property division.
How it works Divorce insurance policies typically work by paying out a lump sum if the policyholder gets divorced. The amount of the payout may depend on the terms of the policy and the length of the marriage. Policyholders may be required to pay monthly premiums for a certain period of time before the policy matures and the benefits become available.
Coverage types There are several types of coverage available with divorce insurance policies:
1. Legal fees: This type of coverage pays for the cost of legal fees associated with the divorce process.
2. Property division: This type of coverage helps cover the costs of dividing marital property, such as real estate, investments, and personal property.
3. Alimony and child support: This type of coverage helps cover the costs of spousal support and child support payments.
Costs The cost of divorce insurance policies can vary depending on several factors, including the policyholder’s age, the length of the marriage, and the amount of coverage needed. Monthly premiums can range from a few dollars to several hundred dollars per month. Policyholders may also be required to pay a one-time enrollment fee when they first sign up for the policy.
Pros and Cons Pros: Divorce insurance can provide financial protection and peace of mind during a difficult and unpredictable time. Cons: Divorce insurance may not be a good investment for everyone, and some may prefer to put their money towards more traditional investments such as retirement savings. Additionally, divorce insurance policies may not cover all costs associated with divorce, and policyholders may still be required to pay out of pocket for certain expenses.

How Divorce Insurance Works

Divorce insurance work principles are pretty simple and don’t need much time to get them. Yet, the conditions and requirements you agree to are different and case-specific. You need to read carefully what you sign so that you don’t spend more than you are to earn from the policy in the end. 

Here is how it works:

  • A person buys a policy and agrees to cover regular payments under the insurance conditions. The payment amount will vary depending on the amount of coverage, waiting period duration, and other policy requirements and conditions. 
  • The person meets the specified requirements, such as waiting period, minimum length of the marriage, etc., so that they qualify for the payments.
  • In case the divorce takes place, the person files a claim to their insurance company.
  • The company reviews the claim and the person’s compliance with the requirements and decides whether they are eligible or not for the payment. 
  • The person receives the payment, and any other benefits from the company if any.

Mind that although divorce insurance is aimed to back you up financially in case of marriage termination, it doesn’t guarantee your economic stability anyway. First of all, you may fail to meet the payout requirements. Plus, you may get not all the divorce expenses covered by an insurance policy. Besides, you have to remember that neither emotional harm nor personal expenses during divorce are covered by divorce insurance. And don’t forget about some restrictions that may lower or even cancel the payout in the aftermath. 

What Are Divorce Insurance Coverage Types

When you consider prenuptial agreements after marriage and wish for divorce insurance to be included, carefully read its requirements and conditions, especially what coverage types they offer. Even if you consider divorce insurance independently from any other agreements, remember that coverage type plays a huge role in what you are going to get in the end. Here you may face two scenarios:

  1. Event-based coverage – this means you will only get your payout if a specific event occurs. Before signing a policy you agree to certain requirements and conditions. This may include that you will only get your divorce covered if the infidelity takes place or after your marriage lasts a certain number of years. 
  2. Whole-marriage coverage – this is a more beneficial coverage that may cost more for you, too. In this case, you will get a payout no matter the grounds and other conditions related to divorce. It only should happen and you get your money guaranteed. 

Although there are only two types of coverage, the conditions and specifications may vary. You may meet the main requirements of the coverage but certain limitations or exclusions will be applied and you won’t see any money from your insurance company. So you need to review every single line carefully before you sign the divorce insurance. 

How Much Does Divorce Insurance Cost

The cost of divorce insurance can be very different regarding different factors and conditions. Generally, you can pay anywhere between several hundred and several thousand dollars depending on the policy pack you agree on.

Here are some examples of how the cost may vary:

  • you will pay less for event-based coverage compared to whole-marriage coverage;
  • you will pay less if your waiting period is longer;
  • you will pay less if you have no serious health issues and are relatively young.

Although the divorce insurance is often the purpose of prenuptial agreements, you can enter it at any time and the cost will be different, too. The latter option may be more expensive and have more complex conditions and requirements added to the policy.

When exploring the potential cost of your divorce insurance, consider carefully whether the outcomes are worth the expense you are to undertake. 


In many cases, divorce insurance is a soothing pill for a couple that may even save them from divorce, or at least reduce the related expenses. But before you agree to any policy terms, you should learn more about it. Check out the requirements and conditions offered for your situation. Choose the coverage and adjust the factors to your budget and expectations of the policy. Dwell on whether you need the divorce insurance at all and whether it is not a waste of time and money.

If you still have any hesitations on the issue you should consult a relevant specialist first to make the decision which is top beneficial for you and your family.