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Ted Wedding > Post-Wedding Divorce Insurance: Why Some Couples Are Safeguarding Their Investments Before Saying “I Do”

Post-Wedding Divorce Insurance: Why Some Couples Are Safeguarding Their Investments Before Saying “I Do”

by Evelyn

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.

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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.

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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.

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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.”

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