In a controversial new trend, an increasing number of couples are purchasing divorce insurance before walking down the aisle—a financial safety net designed to mitigate the astronomical costs of potential splits. A report by MarketWatch revealed that the niche insurance sector has grown by 40% year-over-year, with providers like WedLock and DivorceMate offering policies that cover legal fees, asset division, and even wedding cost recoupment. While critics argue this undermines marital commitment, proponents view it as a pragmatic response to modern realities, where nearly 50% of marriages still end in divorce.
The mechanics of divorce insurance vary. Some policies function like traditional insurance, with monthly premiums paying out a lump sum if a divorce occurs within a specified timeframe (e.g., $50,000 after 10 years). Others operate as refundable wedding deposits, where a portion of the wedding’s cost is set aside in a protected account, repayable if the marriage dissolves. High-net-worth individuals are increasingly drawn to these products, particularly in community property states where asset division can be brutal.
Psychologists are divided on the trend’s implications. Some warn that entering marriage with a “plan B” mindset could erode trust, while others argue it reflects healthy realism, especially for couples with significant premarital assets or children from prior relationships. Prenuptial agreements have long served a similar purpose, but divorce insurance requires no adversarial negotiations upfront—a feature appealing to couples who find prenups unromantic but still want protection.
The rise of divorce insurance also highlights shifting attitudes toward marriage’s financial risks. With the average wedding now costing tens of thousands and divorce proceedings often exceeding $20,000, millennials and Gen Z—who prioritize financial stability—are wary of blind optimism. Some insurers even offer counseling subsidies to policyholders, incentivizing couples to work through issues before filing for divorce.
As the market expands, ethical questions abound. Should employers offer divorce insurance in benefits packages? Can policies inadvertently encourage divorce by making it financially easier? Regardless, one thing is clear: in an era where love and logic increasingly intersect, divorce insurance is redefining how couples approach “forever.”
