Insurance industry recruiter: No-fault divorce is ‘a real risk’
Insurers are offering a way to help couples who want to end a divorce.
| The Associated Press articleInsurers are setting up websites for couples seeking a divorce to sign up for a no-faults divorce package.
| HealthNewsNow.comInsurers say it’s a ‘real risk’ that a divorce will happen without any of their financial resources being used for support.
They say it may not be possible to recover from a divorce in bankruptcy court, unless there are special circumstances.
Insurers also say the package, which includes no-interest debts, will help protect families financially from a future loss of assets, and avoid having to make payments on a pre-existing credit card or car payment.
But some analysts worry that it’s too little, too late for some couples.
In the past few months, several states have made it easier for couples to file for a divorce without a guardian.
Those states include California, Oregon, Texas, Washington and Utah.
Some experts say it is possible that some states are doing too little to protect couples who file without their families.
A recent survey by the Insurance Information Institute, an independent, nonprofit research group, found that 27% of surveyed households had a family member who was a party to a divorce and was seeking a no faults divorce.
That number was higher for couples with more than one child.
The Institute’s survey of 2,000 people who are married or living in a cohabitating household found that nearly three-quarters of those surveyed said they had filed for a non-fiduciary divorce without their family.
That percentage rose to over two-thirds for couples who had a third child.
A few states have expanded their no-facts divorce laws in recent years.
In Colorado, for example, it is now legal to file in court if your spouse has been convicted of a felony, committed domestic violence, or committed a violent crime.
In New Mexico, a nonfiducer spouse can now file if you were the spouse at the time of the divorce.