Prenups are a sensitive subject. There is of course the traditional argument that “if you
really love me, you won’t ask for a prenup”. Then we all know what happens when things change.
A valuable benefit of a prenup is that it protects the parties’ assets, including businesses and business interests, and helps to establish how the economic side of the relationship will work moving forward. With the increase in start-up businesses by Millennials, a prenup can afford protection to the business owner and also provide for the non-owner if the couple so chooses.
Marrying Later in Life than Previous Generations:
Chasing career dreams and ambitions can take time, and many Millennials are putting marriage to the side until they’ve achieved certain goals. Couples that marry later in life have often amassed a larger amount of assets (and debts) than if they had married at a younger age. In the same way that prenups can protect the parties’ assets, these contracts can also provide protection from debt. It is smart to become informed about how marriage may impact assets, income and debt. This can be done with an experienced family law attorney. Then an informed decision can be made about whether or not to proceed with a prenup.
Increased Student Loan Debt:
Another reason couples sign a prenup is to provide certainty with respect to debt acquired before the marriage. The prenup can also address debt acquired after the marriage date. (For example, the parties may want to require mutual agreement on debt in excess of a certain amount or how payments towards a pre-existing separate property mortgage will be addressed.) The PEW Research Center found that Millennials are actually the “most educated” generation to date. Millennials, as a whole, have viewed an undergraduate college and graduate school education as necessary, and have taken on much more debt than previous generations in order to get it. When coupled with any other outstanding debt (credit cards, car/home loans, etc.), it makes sense that Millennials would want to enter into a prenup to ensure that the financial responsibilities will be divided fairly in the household. The financial disclosure included in prenup negotiations sets the state for clear expectations about how finances will work during the marriage.
Certain myths about prenups are not considered valid by Millenials (and others!) There is no longer a stigma attached to wanting a prenup and the document is positively viewed as bringing certainty and security to the economic side of the relationship. Open and honest conversations about how things will work during the marriage are viewed as a platform for establishing good communication and trust.
Steven W. Hair, focuses his practice as a divorce attorney, family law attorney in Clearwater, Palm Harbor, and Safety Harbor.
For more information, visit our website at www.FamilyLawClearwater.com
or call (727) 726-0797.