A prenuptial agreement, also known as a prenup, is a legal contract both parties sign before marriage to protect their personal assets in the event of a divorce.
Prenups used to be viewed as superficial or pessimistic. But today more millennials are getting prenups than previous generations. According to a recent survey, over half of lawyers found increasing numbers of prenups for millennials. Here are a few reasons for this trend:
Millennials are marrying later in life
One of the biggest reasons for the rise of the millennial prenup is that millennials are waiting later to marry than earlier generations. A current report found that the average couple is now together 4.9 years before they get married.
Because they are waiting longer, they are entering into marriage with more assets. They may have a 401(k), wealth or real estate, and they want to preserve these assets.
Women have more assets to protect
The number of women entering the workforce is much higher than in previous generations. More women are getting advanced degrees and receiving higher wages. Single women are also buying houses more often than single men. With this increase in assets, female millennials are looking to keep their finances in the event of a divorce.
Student loan debt
In addition to financial assets, many millennials are also bringing sizeable student debt into their marriage. This could also be a deciding factor in getting a prenup; to avoid having to take on someone else’s debt.
Familiarity with divorce
Divorce is more common than it’s ever been. In fact, one-third of millennials’ parents went through divorce. In this way, millennials are more familiar with divorce than previous generations and may be more inclined to protect their assets before tying the knot.
While proposing a prenup might not be the most romantic idea, there are many clear benefits to getting a prenup if your marriage were to head south. This tool can help to ensure that your assets are secure—no matter what happens.