Insurance for divorce in Ontario
There is always wisdom in taking the extra step to protect yourself. Like a prenuptial agreement, divorce insurance is something couples in Ontario should consider – in case the relationship ends in divorce.
Divorce insurance recently became available in the United States through a company called SafeGuard Corp., where couples can purchase units of coverage to cover divorce costs such as finding a new home and fees. The insurance begins four years after it is taken out to prevent fraud, but there is protection in place for couples who don’t make it that long: they can get their premiums back if they sign a waiver and divorce before four years is up.
The US-based company compares divorce insurance to home insurance, where with home insurance there is a one in 300 chance someone will file a claim, yet it is deemed irresponsible not to have it. With divorce in Ontario at a rate of 38 per cent, there would be more than a one-in-three chance of someone filing a claim if it were available.
Prenuptial agreement vs. insurance during divorce in Ontario
While prenuptial agreements protect both spouses, one key difference with divorce insurance in Canada is that in rare cases a judge can ignore the prenuptial agreement but the divorce insurance is always there. Just recently, Canadian law school professor James Morton told the Vancouver Sun that he predicts divorce insurance will be soon “widely offered” in Canada and it may soon be a viable option for couples who divorce in Ontario.