A reasonable, carefully drafted premarital agreement, for instance, could resolve many of the issues that commonly arise in a divorce or separation, and it can significantly reduce your expenses in the unfortunate event that your marriage fails.
Raleigh, NC (PRWEB) October 6, 2010
Raleigh family lawyer Charles R. Ullman says that a person looking to purchase “divorce insurance,” a product that has generated a great deal of media attention in recent weeks, may want to consider other alternatives, such as a premarital agreement.
“I can understand wanting some form of financial protection if your marriage dissolves, because in some cases, a divorce or separation can be an expensive process,” says Ullman, founder of Charles R. Ullman & Associates, a law firm that concentrates on family and domestic law matters, including divorce and separation.
“But you should also consider the many other ways to protect your interests in a marriage. A reasonable, carefully drafted premarital agreement, for instance, could resolve many of the issues that commonly arise in a divorce or separation, and it can significantly reduce your expenses in the unfortunate event that your marriage fails,” Ullman says.
Several media outlets, such as Time, have reported in recent weeks on the launch of WedLock, a casualty insurance product offered by North Carolina-based SafeGuard Guaranty Corporation.
Under the WedLock plan, which the company bills as the world’s first divorce insurance product, a policy holder would be provided with a lump sum of cash not to exceed $250,000 if their marriage ends in a divorce.
The company says the product costs about $16 per month for every $1,250 of coverage.
“I think one main concern this policy raises is that it would benefit only one half of the marriage partnership. The other spouse might not even know it exists, and if the spouse finds out, it could add friction,” Ullman says.
“Also, in a divorce, courts will consider each party’s entire financial situation, and how the court’s distribution of assets would affect each party,” he says. “So, the insurance payment could be considered as a factor in determining what an equitable distribution of assets would be.”
A premarital agreement, on the other hand, is a mutually reached solution that a couple can discuss and decide upon before a marriage, according to Ullman.
“It’s a process that encourages healthy dialogue,” he says.
According to Ullman, a premarital agreement, also commonly called a prenuptial agreement, can address issues such as spousal support as well as how a couple’s assets and debts will be divided in a separation or divorce.
“The only limit to a premarital agreement is that it can’t contain any terms regarding child custody, because the child’s best interest will always be the determining factor for that issue,” Ullman says.
“Otherwise, a premarital agreement can address most concerns you have before a marriage, and it can give both parties a sense of security as they move forward in their relationship.”
About Charles R. Ullman & Associates
The law firm of Charles R. Ullman & Associates, located on 109 S. Bloodworth St. in Raleigh, N.C., concentrates on family law, including divorce, child custody, child support, visitation, alimony, post-separation support and equitable distribution. Ullman is also a trained collaborative law attorney. For more information, contact the firm by calling (919) 829-1006 or use its online contact form.