When you think of prenuptial agreements, you may think of millionaires or celebrities coercing their future spouses into signing a document. You might think that the couple doesn’t really love each other and the marriage is just based on money.
Prenuptial agreements are no longer just for the rich. In a recent survey conducted by the American Academy of Matrimonial Lawyers (AAML), more than 60% of lawyers have noticed an increase in prenuptial agreements in recent years. Millennials are making prenups popular, but why? Why is signing an agreement so important to them when many do not even own a home?
There are several reasons why millennials are focused on protecting themselves in the event of the divorce. Millennials saw what happened when the recession hit in 2008. The economy tanked. People lost their homes. Many lost their investments in the stock market.
Investing is huge for millennials, with close to 70% of them investing in the stock market or companies. The tech industry is on the move. Many are starting their own companies. They have fewer concrete assets than before. They may not have a ton of cash or even a home, but they have a lot on the line, and they don’t want to lose everything they worked for and be forced to give it all to a spouse in a divorce.
Another thing to consider is that millennials are getting married later in life. Unlike their parents and grandparents, who likely married in their early 20s, millennials are often waiting until their 30s or later to tie the knot. This is because they are focusing on establishing their careers rather than rushing to the wedding chapel. Because of this, they have more assets when they do decide to get married.
Millennials are also thinking about the future. They want to protect assets they may obtain in the future, such as inheritances or property. If there is a family business, they want to protect that as well and ensure it stays in the family.
The same applies to income. If a person is in a lucrative career, they may be entitled to significant raises and bonuses in the future. This may make them the breadwinner, so if the couple does decide to divorce, they can use a prenuptial agreement to opt out of alimony and ensure that their income isn’t going toward supporting their ex-spouse.
Interestingly, women are more interested in prenuptial agreements than men. In the past decade, women have been earning more money. In some marriages, they are even the breadwinners, earning more than their husbands. As such, many women have been the ones paying alimony in recent years. With a prenuptial agreement in place, they can avoid this fate.
If you plan to get married soon, it’s a good idea to protect yourself. Even if you’re not a millionaire, you can still use a prenuptial agreement to divide assets now so there’s less drama should you ever divorce.
The Columbia premarital & domestic partnership agreement lawyers at the Law Offices of Todd K. Mohink, P.A. can help you create a prenuptial agreement that meets your needs. We have two offices to serve you. Schedule a consultation today by calling (410) 774-5987 or filling out the online form.
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