Prenuptial agreements, also called premarital agreements or “prenups,” have an undeserved reputation as only being necessary for celebrities or the ultra-rich. However, more and more people are realizing how beneficial a prenuptial agreement can actually be. Prenuptial agreements allow couples to decide in advance how their property should be divided if the marriage ends in divorce, clarify their financial responsibilities and rights during marriage, make sure property is passed down to selected heirs when a spouse passes away, and more.
Survey Shows That More Millennials Are Using Prenups
A study conducted by the American Academy of Matrimonial Lawyers shows that more than half of attorneys surveyed have seen an increase in the number of young couples signing premarital agreements. Many attribute the increase in prenuptial agreements to the fact that, on average, Americans are getting married later in life than they have previously. The average U.S. male gets married at age 29.9 and the average female gets married at age 28.1. Tying the knot at almost 30 years old gives couples more time to accumulate property and debts that require protection through a prenuptial agreement. Many millennials also have a 401(k), stock options, a start-up business, intellectual property or other complex assets which can be protected by a prenuptial agreement.
The Negative Stigma Surrounding Prenups is Decreasing
Another major reason millennials are signing prenuptial agreements at a higher rate than previous generations is because they have realistic ideas about divorce. While it can be a bleak reality to consider, the fact is that between 30 to 40 percent of U.S. marriages do not last. Because many of them are children of divorce themselves, more and more millennials are taking a pragmatic approach to the way they think about marriage and divorce. Just as they purchase car insurance in the event of a car crash, they sign a prenuptial agreement in the event their marriage does not last. People are starting to realize that signing a prenuptial agreement does not mean that you think your marriage will fail. It simply means that you take financial decisions seriously and want to be as responsible as possible when it comes to property and debt.