It’s true, half of all marriages end in divorce. Divorce is a $28 billion industry, and now a new company is capitalizing on that in a very unique way.
The “D” word is far from Kimberly Bernard’s mind, as the Omahan plans a June wedding. Channel 6 News caught up with her shopping for bridesmaids’ dresses.
"Definitely in love and looking forward to our futures, children and all of that,” she said with a smile.
But what if Bernard could buy security? Wedlock Divorce Insurance is now offering that promise through insurance policies sold on-line, which pay if couples divorce after four years of marriage.
Sabrina McCclurge-Bradley of Omaha said, "I think it's a great idea. I do, we have pre-nups, so why not have a little bit of insurance if we get divorced."
She is contemplating divorce now. But she once thought marriage meant forever. "As things change, as kids grow up, we have to figure out - do we really like this person, do we want to be together?"
She knows divorce can be costly. Divorce attorney Scott Trout, Managing Partner with Cordell & Cordell said even an uncontested divorce can run up at least $2,500 in court costs.
A Wedlock Divorce Insurance representative began selling policies in August, starting at $15.99 per unit, or $1,250 of coverage. Crunching the numbers, that would come to $127.92 a month for $10,000 of coverage.
By the time a policy holder is eligible for payment, after four years, they would have paid $6,140.16 for that $10,000 policy. However, after five years, benefits would increase by $250 per unit of coverage.
From a legal standpoint, Trout said, benefits could be considered “community property.” A judge may force couples to split the benefits no matter who paid for the policy.
The company declines to say how many policies they’ve sold, but a spokesman says they are selling well.
But, is the concept behind divorce insurance dooming a marriage before it begins? Thinking about how to protect yourself is a realistic thought and it might be a healthy one,” said Nebraska Medical Center psychiatrist, Dr. Jim Sorrell. “Although I think betting on divorce may not be the best investment."
Sorrell thinks the company's pitch plays on insecurities. "People would be much better off just having serious discussions and planning about how to take care of themselves."
Trout agrees. "I think that's a really, really bad way to start your marriage."
He added, "I think it's too easy, and I think people find it their own therapy just to get divorced. They don't want to work on it. It's sad."
Bernard’s sole policy: "Marriage is sacred.”
She added, “I would hope someone who got into the marriage with reservations would probably think twice about getting married in the first place."
Her insurance comes in knowing that marriage involves work well beyond the big day.
