We spend a lot of time on this blog talking about how to protect yourself during the divorce process, whether through negotiations or litigation. While it’s important to develop strong legal strategies as one winds their way through a marriage dissolution, there are also steps you can take on the front end of your marriage to protect yourself in the event that divorce occurs.
Chief among these steps is entering a prenuptial agreement. And younger generations are embracing this tool at significant rates.
What is a prenuptial agreement?
A prenuptial agreement is a contractual arrangement that a couple enters into prior to marriage, specifying their financial obligations and how assets will be divided in the event of divorce. It can specify how inheritances will be owned and addressed in a potential marriage dissolution, and it can indicate how premarital debts will be dealt with. These agreements can provide peace of mind with each spouse knowing that they won’t have to worry about their finances should they wind up getting a divorce.
More Americans are in favor of prenuptial agreements
Over time, more and more Americans have recognized the value of a prenuptial agreement. In fact, a recent survey found that half of all American adults said they would sign a prenuptial agreement. That’s up 8% from the year before. And younger individuals are especially likely to use this marital tool. According to the survey, 47% of millennials who have been engaged or gotten married signed a prenuptial agreement. Even 42% of those surveyed in Generation Z have signed a prenuptial agreement.
Why are younger people in favor of prenuptial agreements?
It’s not entirely clear. However, one possibility is that when they were children they witnessed their own parents’ divorce where fights over money were highly contentious and maybe even traumatizing for their children. These individuals, who have now entered adulthood, may not want to face a similar circumstance.
Another factor could be that many women now feel more empowered to advocate for what they think is fair in their marriage compared to generations past. Many of them have their own careers, wealth and dreams, and getting divorced without a prenuptial agreement could endanger all of that.
Perceptions about prenuptial agreements have also changed. While they used to be viewed as something that only wealthy individuals used, their widespread use has led to a recognition that they can be valuable for everyday couples looking to protect their interests and give themselves peace of mind.
Are there risks with a prenuptial agreement?
There can be if they’re inadequately negotiated and poorly drafted. While you certainly don’t want to get into a fight with your soon-to-be spouse, you also don’t want to give away so much in your prenuptial agreement that you end up on rocky financial footing if your marriage were to come to an end. So, if you’re interested in entering a prenuptial agreement, make sure you have a full understanding of what it can do for you, and be sure to understand how it’ll position you in the future before you sign off on it.
Are you ready to learn more about prenuptial agreements?
If so, then we encourage you to continue to read up on them and maybe even look over some sample agreements that give you an idea of what they look like. You shouldn’t, however, try to create a binding prenuptial agreement on your own, though, as this could lead to a later finding of invalidity, thereby putting you at risk of a bad outcome. So, if you have questions about prenuptial agreements or you’re ready to enter one with your spouse, then reach out for any support and guidance you may need.