As the nation slowly recovers from one of the worst recessions in its history, many people are concerned about how divorce may affect their finances. However, there are options available to help people keep down the costs of divorce and to emerge from divorce with a clear understanding of their assets and debt obligations.

While people may hear stories of million-dollar divorce settlements and enormous child support obligations, these cases are not typical. Most often, people emerge from divorce without financial ruin.

The Wall Street Journal reports that financial advisors urge people to prepare for divorce the same way they prepare for any other unexpected major financial expense. Terry Headley, president of the National Association of Insurance and Financial Advisors, recommends setting aside income for several months to save cash to cover both spouses’ costs in the divorce.

Other approaches to financial preparation for divorce include buying either divorce or marriage insurance, which provide coverage in case of an eventual divorce or in case a wedding is called off. Divorce insurance is sold by Safe Guard Guaranty Corp., and it only provides coverage if the spouses have been married at least four years to prevent people from buying the insurance when they already know divorce is imminent. Wedding insurance covers expenses when a wedding is canceled, or if it is rescheduled due to weather or other problems, according to the Wall Street Journal.

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