Do You Need Divorce Insurance?

(CANVAS STAFF REPORTS) - When you're supposed to be thinking about living happily ever after on your wedding day, an insurance company is hoping you'll also plan for the worst-case scenario – getting a divorce.

North Carolina-based company called SafeGuard Guaranty Corp. is touting what it claims is the world's first divorce insurance offering, according to the NYTimes.com Bucks Blog .

The WedLock insurance is sold in units of protection, to cover the costs of divorce proceedings, including legal fees and setting up a new apartment or a house.

At about $15.99 per month per unit, you'd be covered for $1,250 that would go to you as a lump-sum payment in the case of a divorce, and you can buy as many units as you think you'd need.

If your marriage ends, like the 32 percent of couples whose first marriages end in divorce in the United States according to SafeGuard's site, the company is hoping to give you peace of mind knowing you'd get a lump sum of cash based on the amount of coverage you opted for.

But MSN.com reports it is better to avoid costly and lengthy legal proceedings altogether. A couple of tips to ensure a cost-effective divorce, include using mediators to talk with your ex instead of hiring a lawyer right off the bat.

If you go the long, drawn-out legal route, family law attorney, John Crouch tells MSN: "It'll just hurt everyone in the long run."

But, if you are worried about covering yourself just in case, instead of buying costly insurance there are other money savings ideas that could help in the case of a marriage breakdown.

The NYTimes.com reports that experts say putting a little bit of money aside, in an interest-bearing account might be the way to go.

But, SafeGuard is warning consumers that they should plan for the unexpected, and warns that bank accounts are not safeguarded in the event of a nasty divorce.

"There is nothing to stop your spouse from raiding those investments and taking it all. And then with all the money gone, you're left with all the legal bills," John A. Logan, chief executive officer of SafeGuard Guaranty, told the NYTimes.com.

The company's website provides customers with a divorce cost calculator to help decide whether it is worth it.