One of the latest millennial trends is signing prenuptial agreements prior to marriage. In a survey by the American Academy of Matrimonial Lawyers, more than 50 percent of attorneys reported an increase in prenuptial agreements between people ages 18 to 34 years old.
According to CNBC, over 60 percent of lawyers reported an increase in the number of clients requesting prenuptial agreements overall. In fact, the number of prenuptial agreements has increased over five times in the past two decades.
What is the reason for the increase?
Likely, there are two main reasons for the increase in prenuptial agreements among millennials. First, millennials are getting married later in life. This allows them to save their own assets that they might want to protect in a divorce.
Second, millennials have more debt than any other generation in the past. According to Forbes, millennials in the United States owe over $1.5 trillion in student loan debt. A prenuptial agreement can help keep debts separate in the event of a divorce.
What should you consider in a prenuptial agreement?
If you are considering a prenuptial agreement, it is important to take the following factors into account:
- Which assets and debts will remain separate?
- How will a non-working spouse be compensated in the event of a divorce?
- Will you file taxes together or separately?
- Are there any businesses or inheritances you need to account for?
- What will happen to any children brought into the marriage if you divorce?
- Is the agreement fair to you and your partner?
No matter your age, prenuptial agreements can be valuable to have when entering a marriage. Consider speaking to an attorney to create a prenuptial agreement that is the right fit for you.