Why More Millennials Are Getting Prenuptial Agreements

 Posted on May 25, 2017 in Prenuptial & Postnuptial Agreements

A recent American Academy of Matrimonial Lawyers survey claims that a growing number of millennials are creating prenuptial agreements before getting married. According to the survey, 51 percent of attorneys are seeing an increase in premarital agreements by millennials, who are generally defined as people born in the 1980s and 1990s. There are numerous ways that a prenuptial agreement can benefit couples during a potential divorce, including:

• Defining individual and marital property;
• Determining the division of assets;
• Calculating alimony payments; and
• Allocating future benefits, such as retirement plans and life insurance.

Prenuptial agreements have grown more popular for couples of all ages in recent years, but researchers are particularly interested by the increase among younger couples. There are several possible reasons why millennials are embracing prenuptial agreements.

Delayed Marriage

Compared to previous generations, millennials on average are waiting longer to get married. Many focus on advancing in their careers before deciding to settle down and possibly start a family. An older person has time to accumulate more individual assets that he or she may want to protect in case of divorce. A prenuptial agreement allows him or her to define some assets as individual property, which is not subject to equitable division in a divorce.

Expectations of Marriage

Millennials are believed to value marriage less than previous generations. Some do not see marriage as necessary in order to have a successful life. When they do marry, they may view divorce more pragmatically. Creating a prenuptial agreement requires someone to admit that divorce is a possibility in the marriage. People who place less importance on being married may be more comfortable discussing a possible divorce.

Debt Freedom

When a couple divorces, they can be held liable for each other’s debts. With the skyrocketing cost of a college education, many millennials owe massive student loan debts. A prenuptial agreement can protect someone during a divorce from being responsible for the debts a spouse amassed before they were married.

Intellectual Property

People may think of marital property as only physical and monetary. Millennials have a broader definition of property that includes intangible assets. Intellectual properties may not have any current value but can become profitable. A prenuptial agreement can protect the potential value of intellectual properties, such as:

• Business and technology ideas;
• Software;
• Films;
• Songs; and
• Screenplays.

New Age of Prenups

There may be a simple reason for the increase in millennial prenuptial agreements in recent years. As the generation grows older, more millennials are getting married. However, millennials seem to be embracing prenuptial agreements in a way that other generations do not. If you are considering a prenuptial agreement, contact a Kane County family law attorney at Goostree Law Group to discuss the process. Call 630-584-4800 to schedule a free consultation.

Source:

http://www.cnbc.com/2016/11/25/before-saying-i-do-more-millennials-say-prenup.html