Surge in Prenuptial Agreements is Being Driven by MillennialsBy Moskowitz Law Group, LLC |
As the Millennial generation continues to influence various aspects of society, it is currently impacting the rates of prenuptial agreements. While the United States has seen a drastic surge in couples signing prenuptial agreements over the last few years, it has been noted that it is millennials that are the driving force behind this trend.
Statistics on Prenuptial Agreements
Prenuptial agreements are the arrangements made between a couple before marriage concerning the ownership of assets should the couple get divorced. According to research conducted by the American Academy of Matrimonial Lawyers (AAML), 62% of lawyers surveyed reported an increase in the total number of clients requesting prenuptial and a 51% increase in the number of millennials signing prenuptial agreements. This shows five times more premarital agreements over the last 20 years.
Increasing Desire to Protect Assets
One of the main reasons behind this significant increase in prenups is that millennials have become more protective of their individual assets. More couples are considering the impact that a divorce may have on their future economic situation. Many particularly wish to protect their assets after witnessing and experiencing the recession starting in 2008.
Additionally, it has been stated by some that millennials are characteristically less interested in “hard assets” such as houses, and more invested in “soft assets” such as stocks and enterprises. With 7 out of 10 millennials financially investing in some sort of market, the value of these soft assets may be more uncertain, leading many individuals feel the need to protect them in case they yield strong gains in the future.
Holding More Assets
Another change that millennials are causing on the marriage front is the age at which they are tying the knot, as they are choosing to wait until their late 20s and early 30s. As Millennial couples have generally been getting married at older ages compared prior generations, they often have more assets to their names and more to protect in the event of a divorce.
Additionally, it is expected that millennials will inherit nearly $30 trillion from old generations over the next few decades. While prenups protect current assets, they are also beneficial in protecting assets that may be gained in the future, potentially safeguarding an individual’s inheritance.
Racking Up Debt
Besides bringing greater assets into a marriage, debt is increasingly common among millennials. The millennial generation is saddling more debt than prior generations. A prenup could also help to indicate who is responsible for the debt payments and insulate a spouse from the other’s debt.
A Shrinking Stigma
Prenuptial agreements are simply becoming less taboo, as the stigma surrounding them is being broken down. As prenups become normalized, millennial couples have become much more accepting and likely to sign an agreement.
Previously, premarital agreements were seen as being intended solely for wealthy individuals and as a sign that the couple sees the marriage ending in a divorce. However, as their reputation is being changed, millennials have become more knowledgeable in exactly what prenuptial agreements can do for them.
Are You Considering a Prenuptial Agreement?
When discussing marriage with your partner, the topic of a prenup may arise. Prenuptial agreements could help protect your assets and from liabilities in the future and be beneficial to your marriage. If you are seeking a prenuptial agreement before you and your spouse tie the knot, reach out to our dedicated legal team at Moskowitz Law Group.