In the past, prenuptial agreements have often been stigmatized and seen as “unromantic” by couples who felt such an agreement was signaling that they intended to end their marriage. The millennial generation have been turning these views on their head, and more 25+- and 30-somethings have prenuptial agreements than their parents did. But why are more young adults turning to prenups?
Later Marriages
Millennials are marrying far later than previous generations, which means they often are marrying at a time when they have their own careers, assets, and savings. Commonly, millennials are delaying marriage until their 30s or later. Many express the desire to be financially stable before they contemplate marriage, but it is taking millennials far longer to achieve a stable status.
In the current economy, many young adults are struggling with a lack of jobs, increased education costs and student debt, and a soaring cost of living. Because of the financial obstacles facing them, it takes millennials more time to reach a comfortable financial position to move forward and begin a marriage. Increasingly, marriage is being viewed as a financial decision.
More Assets
In the current economy, it isn’t uncommon to see an app or small business explode and suddenly become very lucrative. Prenuptial agreements are helping millennials protect themselves in the event they experience a sudden boom. Many young adults are exploring entrepreneurship over a traditional careers, so separating their personal assets and debts from those of their partner becomes even more important.
More Debt
The cost of education has skyrocketed, while a degree has become a minimum qualification for many entry level positions. As a result, many millennials are taking our enormous amounts of student debt to finance their education. When it comes time to marry, it isn’t surprising that millennials are trying to protect themselves from their partner’s debt and vice versa. A prenuptial can be used to determine how debt will be divided, should a divorce occur.
Estate Planning
Prenuptials are a powerful tool for estate planning as well. For family businesses and entrepreneurs, a prenuptial agreement can help them guarantee that their business will pass to their descendants, and can help keep assets in the family. This also can be useful to protect family heirlooms and properties. As many millennials are preparing to take over family businesses, a prenuptial may need to be a part of these preparations to allow peace of mind to their parents and family members.
Learn How a Prenuptial Can Benefit Your Estate Plans - (972) 200-3078
At the Law Offices of Dan Chern, P.C., we have helped families prepare their estate plans for nearly two decades. If you are a business owner, have considerable assets, have a blended family, or other special considerations, our experienced Allen estate planning attorney can assist you in forming an estate plan that is tailored to your needs. Discover how we can help by scheduling a confidential initial case evaluation.
Contact our firm today by calling (972) 200-3078.