According to The American Psychological Association, about 40% to 50% of American couples divorce. These divorces can get very ugly if there are no set agreements beforehand on the division of assets. That is why prenuptial agreements are becoming more common. Short for a prenuptial agreement, a prenup is a legally binding contract two people sign before marrying that covers financial issues and the future of assets in the event of a divorce. Prenups are shedding their stigma and becoming increasingly popular among Americans, especially with millennials. Here are some reasons why these agreements are more important today than ever.
Married Later in Life
According to the American Academy of Matrimonial Lawyers, more than half of lawyers surveyed saw an increase in prenups among millennials, and 62% saw a rise in prenups overall from 2013 to 2016. One of the reasons behind this is that many millennials are getting married later, which results in accumulating more assets and debt before marriage. The longer millennials wait to marry, the more time they have to accumulate assets that need protection. Millennials are creating wealth through their own business startups, intellectual property (apps, software, etc.), and they want to make sure those are not lost due to a divorce.
Millenials Want a Smoother Divorce
Many people who are at the age of getting married now were children of divorce. They witnessed how unfair and the mess that divorce proceedings can create. That is why many millennials are opting for prenups to avoid the long divorce process and protect their own assets. They do not want to experience the same thing their parents did.
Prenups are Not the Same Anymore
Prenups have evolved beyond a legal document utilized by the rich and famous or those marrying multiple times. A prenup may have been a dirty word before, but now the concept has gained more respect. The largest advantage of a prenup is that the couple, not the court, decides what happens in the event of a divorce. A prenup does not mean you expect a divorce, rather you are both equally prepared in case of one.
Prenuptial agreements are much more common today and are still increasing among couples. If you are interested in setting up a prenup, contact me today with any questions or to start the process. It is a simple way to protect your hard-earned assets.