In past decades, prenuptial agreements (or “prenups”) were stigmatized and treated like a bad omen. But in modern times, prenups have become more popular than ever. An increasing amount of millennials are signing prenups before they get married. With a prenup, people can protect their assets and avoid paying off their spouse’s debts in the event of a divorce.
Why are prenups popular among millennials?
A large percentage of millennials have thousands of dollars in student loan debt. If they marry and then get divorced, they might end up being responsible for half their former spouse’s debt. As a result, many millennials are signing prenuptial agreements to mitigate this risk. The document states that the debt holder alone is responsible for the debt, not their spouse.
Additionally, studies have shown that millennials are marrying later in life than couples in previous generations. As a result, they typically enter a marriage with more financial assets that they want to protect. They might have savings accounts, retirement funds, properties and other assets. Without a prenup, these assets might get seized during a divorce.
Many millennials also own their own independent business. They want to protect this business by ensuring that their spouse can’t seize part of their business assets in the event of a divorce. This is another reason why prenups are so popular with millennials.
Who can help you with a prenuptial agreement?
Drafting a prenuptial agreement isn’t as simple as writing down an agreement and signing it. A couple should consult a lawyer to help them draft a prenup or postnuptial agreement. A lawyer could help them draft a legally binding document and point out considerations that they might not have thought about. A lawyer might also help them evaluate their assets and figure out what they want to protect.