Rise in prenups fuelled by millennial and later life marriages
Interest in prenups has grown significantly in recent years. Increased media coverage of celebrity prenups is one factor. Perhaps more significant is that couples are now marrying at a later age. Couples getting married today are on average in their mid-30s, a 10-year increase since the 1970s. At this age, they may have already accumulated assets and wish to protect these.
Additionally, millennials are more likely to be children of divorce. As such, they have experienced first-hand the difficulties of dividing assets at a time of stress. This may explain why the millennial generation is more realistic about the need to plan for the future.
Address wealth disparity
There may be a significant wealth disparity between the two parties. The prenup can help address wealth incompatibilities directly before they become an issue.
Millennials are predominantly children of the baby boomer generation who may be in a better position to pass wealth on to their children. One of the parties may be in line to receive a significant inheritance in the future that they wish to protect.
Couples who marry at a later age are more likely to have built up a career and had the opportunity to accumulate both assets and savings. By contrast, they have also had more time to have accumulated debt. For example, millennials have experienced greater levels of debt through student loans. If a spouse has significant debt, their partner may wish to insulate themselves from this debt should the marriage end in divorce.
Protect children’s inheritance
Second marriages are more common these days. Perhaps one party wishes to ring fence certain assets to ensure that they are passed on to their children from a previous marriage. They may be supporting children through school or looking to continue that support into adulthood; to help them get on the property ladder for example.
An eye on the future
People are living longer, meaning there is a greater opportunity for a second or third marriage in a lifetime. For those marrying later in life, they may be starting to think about retirement, or future care needs and wish to ensure they have sufficient assets to meet these needs in the event of a divorce.
Prenups – a positive step
Whilst nobody wants to have divorce in their mind when they enter a marriage, the reality is that many marriages end in divorce. A prenuptial agreement can be a positive step, setting out expectations and addressing financial issues calmly and carefully prior to the marriage. This allows you to deal with sensitive matters in a positive way rather than addressing these during the heat of a divorce, when emotions may be running high.
Picton’s experienced family law team provide expert advice and support in preparing an appropriate prenuptial agreement that meets your specific needs.
Contact our specialist team if you would like to discuss a prenuptial agreement.