The State of Divorce & Why We Invested to Disrupt It
October 25, 2022
By The Artemis Fund
The Artemis Fund believes technology can create prosperity for all. With offices in New York, Texas, Massachusetts, and Nevada, Artemis leads seed rounds for companies creating resilient families, individuals, and businesses across the US.
Chances are you or somebody you know has been divorced. Despite the difficult circumstances surrounding divorce, it can be an important tool for families to stay healthy and safe, but the process is arduous and expensive. In the US, 750,000 couples divorce each year (a divorce every 42 seconds). If divorce is so prevalent, why is the process so antiquated?
Erin Levine, seasoned family law attorney and founder of Hello Divorce, wondered the same thing. The average cost of divorce is $15,000 per person, and most people depend on attorneys, even though most divorces can be handled outside of court. Hello Divorce allows customers to largely avoid the confusing court system and complete the divorce process at a fraction of the cost and time.
We are excited to announce that The Artemis Fund recently led the Seed round for Hello Divorce. Other investors in this round include Lightbank, Northwestern Mutual Future Ventures, Gaingels, CMFG Ventures, Pitbull Ventures, Chaos Ventures, Sand Hill Angels, and CEAS Investments. Read the press release here.
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The Impact of Divorce
The Impact of Divorce
Divorce is a transformational event that requires each partner to make financial changes (banking, insurance, financial planning), life changes (therapy and community), and adjust household management (housing, childcare, transportation). Each year families spend an additional $70B+ following a divorce in establishing new housing, insurance, banking, credit, and wealth management services. Post-divorce therapy alone is a $1.8B annual market.
Additionaly, women are often more vulnerable before, during, and after a divorce. On average, divorce negatively impacts women’s finances twice as much as men’s finances because women are more likely to leave the workforce to care for children during marriage, lowering their earning potential. Women often remain the primary caregivers after divorce, further impacting professional growth and the ability to build financial independence. In fact, 60% of people under poverty guidelines are divorced women and their children. Child support (around $30B annually in the US) can help alleviate this burden. However, only 35% of divorced mothers receive child support.
Divorce and family law are ripe for innovation. Over 4 million family law cases, including divorces, are filed each year in the US, representing $70B in legal fees alone (i.e. retaining a lawyer). The latent legal market is massive, with 77% of people navigating family law matters independently.
Hello Divorce’s Unique Solution
Hello Divorce’s Unique Solution
Other companies have tried to modernize divorce by automating the filing process, but HD posits that divorce should be looked at as a wholistic event that touches almost every aspect of life — and we agree.
Hello Divorce is a comprehensive solution empowering individuals and families to take control of the divorce process with the support of attorneys, mediators, financial advisors, and emotional experts.
In addition to legal tools, HD recently launched financial tools, including loan pre-qualification, a child-support calculator, and the option to book a certified divorce financial advisor. HD enables people to make more informed decisions for their family and their finances, setting them up for the next chapter of their life.
Tying these components together puts the needs of families — not lawyers — at the center of the solution.
We believe once in a generation companies will be built by unexpected founders. If that sounds like you, pitch us here!
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