Divorce: You Can Insure It Without Ensuring It


Divorce insurance is a form of contractual liability insurance that pays the insured a cash benefit if his/her marriage ends in divorce.

The purpose of divorce insurance is to mitigate the risk of incurring significant financial loss as a result of a divorce proceeding. As divorce rates have increased, divorce has become a major contributing factor to bankruptcy and poverty which, in turn, has created the demand for this product.

The history of divorce insurance will be in a separate article.

Divorce insurance was developed in 2005 by John Logan. Mr. Logan is the chief executive officer and founder of Safeguard Guaranty Corporation. *

Divorce insurance is a form of casualty insurance. It is, specifically, contractual liability insurance. Divorce insurance reimburses the owner after a marriage is dissolved by way of divorce or marriage dissolution and a party who has divorce insurance submits a claim to the insurance company to obtain reimbursement.

Most policies have a waiting period of 48 months and, for an additional cost, some insurance companies will permit the insured to pay additional funds to reduce the waiting period to 36 months.

Currently a Chinese insurance company  located in China is the only company in the world that offers divorce insurance.   In the United States, John Logan established a company called Safeguard Guaranty Corporation and uses as its brand name Wedlock Divorce Insurance * which may be sold in the United States through a fully licensed surplus lines carrier.

If you become separated, served with divorce papers, or have any other notice that you are likely to become divorced, it is too late to acquire divorce insurance. The policy must be taken out at least 36 to 48 months before you are aware that your spouse is seeking separation or divorce. One of the means of determining whether you are aware of an impending divorce or separation is whether a reasonable person under the same or similar circumstances would  believe that there is a strong likelihood of a divorce.

Fred  Antenberg is a Family Law attorney who is located in Columbia, Maryland, and he represents individuals who are undergoing separation and/or divorce. He practices family law in Howard County, Maryland, and surrounding Maryland counties.   Call Fred at 410-730-4404

*NOTE:  We do not endorse divorce insurance and/or Safeguard Guaranty Corporation.  We are only providing this information so that individuals can be aware of the availability of this insurance coverage.