According to a recent study conducted by the American Academy of Matrimonial Lawyers, 62% of divorce attorneys surveyed reported an increase in the total number of clients requesting prenuptial agreements. Among those attorneys who reported an increase, 51% said there was an increase in the number of Millennials signing prenups.
A prenuptial agreement (prenup) is a written contract that a couple enters into before getting married. Should the marriage end in divorce, it outlines how your finances and assets should be divided.
Why Millennials are Embracing Prenups
To Protect Their Assets
Because Millennials are getting married later in life than previous generations, they’re more likely to come to the table with assets of their own, like a home, savings, and investments.
The Pew Research Center discovered that one of the main reasons why Millennials feel the need to protect their assets is because they entered the workforce during the Great Recession and have worked very hard for all that they have.
They’ve Seen Past Marriages Fail
It’s estimated that between 40 and 50% of all marriages in the United States end in divorce. And because divorce became less taboo in the 1980s, it wasn’t uncommon for Millennials to have divorced parents themselves or friends whose parents were divorced. Growing up and realizing that divorce is not uncommon could be part of what’s encouraging newlyweds to think more rationally about their future.
Prenups Set Roles and Expectations
Before getting married, it’s important that couples talk to each other about their personal finances and how they plan to spend (and save) money once they’re married. This is a very good chance to talk about what you expect from one another — will you exclusively have a joint account for all expenses or will you have a joint account as well as personal ones?
By having difficult conversations now and understanding where each person stands on certain matters, couples can actually lower their chances of getting divorced in the future.
Are you recently engaged and considering getting a prenup? Contact Orshan, Spann & Fernandez-Mesa online or call (305) 853-9161 to learn how we can help.