Divorce can come with an emotional toll and financial uncertainty. No other generation knows this better than Millennials. Many of them saw their Baby Boomer parents’ divorces end in bitter custody battles, heated arguments over who gets the family home and permanently burned bridges. As a result, many Millennials wish to avoid the same fate. That may be why prenups are becoming more popular.
According to Business Insider, there’s been a 62% increase in couples getting prenups – and Millennials are driving the surge.
Behind the Millennial prenup boom
Prenups used to come with a negative stigma. That’s because they typically only protected one spouse, which could foster a lot of resentment and anxiety in a marriage. However, American society and values have changed over the years, especially when it comes to marriage.
For many Millennials, marriage is more of a business transaction than a way for them to solidify their love. when they decide to tie the knot, these Millennials want a clean break if things go south. A prenup allows both partners to protect their individual assets, establish spousal support payments and determine debt divisions if they divorce.
The Pew Research Center says Millennials are often more protective of their assets. This mentality may come from the fact that many came of age during the Great Recession. Plus, many Millennials are getting married later in life and, because of this, come into the marriage with more individual assets. These can include stock portfolios, a business or a large family inheritance. Plus, these Millennials aren’t just signing prenups to protect their current assets; they’re doing it to protect their future assets.
When is signing a prenup a good idea?
A prenup might be a good idea for you and your partner if one or both of you:
- Own a business
- Hold a substantial amount of debt
- Have children from a previous relationship or marriage
- Plan to temporarily exit the workforce to raise children
- Will receive stock options during the marriage
Preparing today can alleviate the uncertainties of tomorrow
When you and your partner are planning your future, securing your assets and mapping out your future ambitions can seem unromantic. However, when you have the right protections in place, it gives you the opportunity to build the life you want together without creating additional risks.