While some people feel hesitant about bringing up or agreeing to a prenuptial agreement, more are discovering the benefits of these financial planning tools. One generation and one demographic are the reasons for an increase in prenups: Millennials and women in Texas and other states are wanting prenups.
According to an American Academy of Matrimonial Lawyers survey, 62% of attorneys questioned said that more people are requesting prenups, and about 51% attributed the increase to millennials. The millennial generation includes individuals born during the years of 1981 to 1996, so today people between the ages of 22-37 are the ones requesting more prenups than their predecessors.
Compared to past generations, millennials get married later. This gives this group more time to gain assets, and creates a greater incentive to safeguard those financial assets. This generation is also more tech savvy and worldly-wise, and the subject of a prenup is not as “taboo” as it once was; it is often seen as a smart decision that protects both parties, which is true.
For go-getter entrepreneurial millennials who start up businesses, issues regarding property and business ventures may be especially relevant. Even if a business started before the couple wed, it may not be considered separate property if the business reorganized after the marriage or if the couple invested community property assets in the company. A prenup may help prevent future feuds about business assets.
Additionally, more women are achieving financial success on their own prior to marriage, and are wanting prenups to protect the assets they’ve accumulated. As more women focus on building careers, sometimes even out-earning the men they are with, these women could also later become potentially responsible for alimony payments. Approximately 45% of attorneys surveyed in another AAML study found an increase in the number of women providing alimony for their partners. This is another reason that an increased number of women want prenups.
Prenups have power:
A prenup can also:
- clarify and protect separate property that belongs to each party, including family heirlooms and inheritance,
- protect a spouse’s right to inherit the other’s property if they die, and
- provide or limit access to government benefits, life insurance policy benefits, or retirement benefits.
Discussing these financial issues prior to marriage can actually reduce the stress of the unknown future, and build a foundation of mutual understanding as to the handling of each party’s assets. If you’d like to explore the benefits of a premarital agreement, give Hargrave Family Law a call; we’re here to help.