Sounds weird doesn’t it? Insuring against divorce! But then truth is usually much stranger than fiction. The latest bizarre event in the world of family law is the announcement by the German-based insurance company, ARAG, that with effect from September, its insurance offerings will include a type of divorce insurance – one that pays out if a prenuptial agreement taken out in England is challenged in the courts.
Currently these sorts of policies are already quite common on mainland Europe – in Spain and Germany for example. They have, however, been more slowly introduced in England and Wales due to the current legal status of prenuptial agreements here. This sort of prenuptial contract has limited legal force in England and Wales – they are not yet formally enforceable, although October last year saw a significant change in the approach of the courts when they prenup made by Karen Rademacher, a German address, was broadly upheld as part of her divorce settlement.
The new insurance policy is, apparently, subject to numerous conditions – no surprise there. For example, only prenuptial agreement lawyers approved by the insurance are permitted to draft the prenuptial agreements that will be covered by the insurance policy. Interestingly, however, although the cover ranges from £50 K to £500K, premiums will be set on a flat-rate basis – and start at just £500.
If you want to know more about how prenuptial contracts work, visit our specialist UK Pre-Nuptial agreement website – or call our experienced prenup agreement and divorce solicitors on [01722] 422300.
One Comment
Considering the vast settlement that Boris Berezovsky paid out following his recent divorce, and all of the subsequent reports, I’m sure there is certain to be an increased interest in prenuptial agreements in the UK. There is no denying that, in many respects, they make a great deal of sense.
Divorce insurance seems a little crass to me, though. I’m sure it will prove very useful to some people, but it is, undeniably, a product for the pessimistic and cynical.