Should I Get A Prenup?

Millennials are embracing prenups like never before – but is it right for you? Older generations have forever complained their offspring do things differently and marriage is not exempt from that. Millennials are getting married later in life and a prenup is becoming more common. Once only the choice of the wealthy, Millennials are getting prenups for non-financial reasons, too, reflective of the fact many Millennials put a higher value on experiences than material possessions. Therefore, Millennial prenups often cover “intellectual property” rather than physical or financial assets.

If you are a millennial and considering a prenup, read on to find out if it may be right for you.

What’s A Prenup?

Officially called a “Prenuptial Agreement” it comprises a legal document couples obtain before tying the knot. Its purpose is to make a determination of property division should the marriage end in divorce. It also protects one spouse from the debt of the other partner. Laws regarding what can and cannot be included in the agreement as well as what happens to assets that are accumulated during the course of the marriage differ from state to state. Normally a prenup does not address items earned |during the lifetime of a marriage – this has posed issues for lawyers as millennials often want to include concepts, ideas and assets that they may obtain in the future.

Why Are Millennials Getting Prenups?

When polled by their own member organizations, attorneys claim there has been a marked increase in the total amount of millennials seeking prenuptial agreements. Indeed, prenups are up around 62 percent for all sections of the population but the greatest spike has been for millennials. One reason is millennials are more aware of the high divorce rate that hovers around 40 percent. Therefore, millennials feel it is important to enter marriage with a plan as opposed to spending large sums of money should they later divorce. Millennials are also wanting to include more than just physical property in prenups. The thought being if a partner creates something (e.g. a company), their intellectual property should be protected in a prenuptial agreement. There is even a concept that a prenup can prevent couples from sullying the reputation of the other partner should the marriage end in divorce. This is considered important for professional occupations, particularly roles with a strong exposure to social media populations.

Do I Really Need A Prenup?

Prenups can be good but they are not always needed. if a couple has large financial assets it may be wise but there are also other reasons to consider a prenup. Your credit can take a major hit in a divorce and you may have to pay alimony as well as the debts of your spouse and of course you will be required to pay child support as well as your own living expenses. Prenups are also good at avoiding potential debt traps like the other person’s student loan debt. It is a fact millennials have more student loan debt than any previous generation and a couple who has to shoulder additional debt when they marry should certainly be considering a prenup to keep those debts solely on the shoulders of the person who incurred them.

How Do I Get A Prenup

Prenups are not free but they cost a lot less than what you would pay lawyers in a subsequent divorce. Each party should have their own legal representation. Thankfully, most lawyers will assemble a prenup for a flat fee. You will have to spend time deciding on the proposed division of debts and assets you both have, and your lawyers can guide you through the rest of the process.

Conclusion

More than ever, couples are choosing prenups when they marry. A lot of stress can be saved if alimony, assets and debts are divided up prior to the marriage taking place, should the marriage end in a divorce.

Source:

“Should You Get A Prenup?” Money Under 30, https://www.moneyunder30.com/should-you-get-a-prenup.