Millennial prenups are on the rise. In this article, we will explain what a prenup is and why a millennial signing a prenup could be a good idea.
A prenuptial agreement, commonly referred to as a prenup, is an agreement signed by a couple which outlines how they will divide their assets if they are divorced. Usually, these agreements are signed when a couple is engaged and planning to be married. However, prenups can be signed by anyone. A version can even be signed if the couple is already married. In the prenup process, the couple will sign a written agreement which will be enforced if they couple were to divorce in the future. It is not an agreement or plan to divorce, it is simply a safe means to prepare for the possibility.
Often, prenups are looked at socially as cynical or “cursed,” however many people argue that any couple considering marriage should sign a prenup. There are certainly benefits to signing a prenup - even couples who are confident in their marriage’s stability. A divorce can be time-consuming, stressful and expensive. A prenup will simplify the process of the divorce - should it arise - which will make the process easier for the couple and their families. A prenup could also give a sense of security to the couple ahead of their marriage, removing some of the fear and anxiety around the threat of divorce.
Millennials as a group are looking into and getting prenups at a rate higher than any generations prior to the. Why is that? And what are the benefits that Millennials are seeing in prenups? A major reason for The Rise of the Millennial Prenup is that millennials are getting married much later in life than previous generations. Often, millennials are getting married after each member of the couple has already established themselves as financially independent. This means that couples are entering marriage with larger and more complex estates than previous generations. A prenup is the strongest way for an individual to protect their personal assets and assure that they will not lose large portions of the assets they had prior to marriage. The increased complexity of millennial estates could also lead to very complex divorces, which is another reason for millennials to investigate the prenup process. Personally, millennials also have more life experience with divorce or separation, either in their own families or in the families of friends. Seeing married couples separate or divorce makes many millennials more aware of the realities of the potential of divorce and the toll the divorce process can take.
A prenup should not be looked at as a cynical plan for a negative future. Rather, prenups should be considered as pragmatic solutions for a problem that will hopefully never arise. For more on prenups, you can read our article or watch our video “Illinois Prenuptial Agreements Explained.”