While not as widespread as avocado toast, prenuptial agreements are becoming increasingly popular among millennials. Aiello & DiFalco has noticed this trend and understands the unique needs of millennial couples when it comes to protecting their assets and interests before entering into marriage.
Millennials and Prenuptial Agreements: A Rising Trend
A recent survey by the American Academy of Matrimonial Lawyers (AAML) revealed that just over half of the attorneys observed an increase in the number of millennials requesting prenuptial agreements. Overall, 62 percent of lawyers surveyed have seen a rise in clients seeking prenups over the past three years.
Over the past 20 years, there has been a significant fivefold (5x) increase in the number of prenuptial agreements. This trend is particularly noticeable among millennials, who tend to marry a bit later in life. As a result, they may have accumulated more assets that require protection in the event of a divorce. Many are in a much different financial position than other generations getting married shortly after college and starting families before they own property, retirement accounts, businesses or other valuable assets.
Financial Obligations and Lifestyle Choices
A TD Ameritrade survey of 1,000 adults aged 18 and older found that nearly one-third of millennials are delaying marriage due to financial obligations, while 38 percent are postponing having children. Additionally, a separate survey by Wakefield Research for Graebel, a corporate relocation service, revealed that 71 percent of millennials would be willing to delay marriage and 72 percent would postpone having children to relocate for a job in a desired location.
Millennials often enter marriage with wealth accumulated in the form of retirement plans such as 401(k)s, stock options and other benefit programs, or real estate investments, and want to ensure that these assets remain theirs in case of future problems. The top three areas most commonly covered by prenuptial agreements for millennials include protection of the increase of value in separate property, inheritance rights, and community property division.
Addressing Student Loan Debt
Aside from assets, many millennials are also burdened with significant student loan debt, which currently stands at a record $1.5 trillion. Prenuptial agreements can safeguard individual assets like retirement accounts, real estate, and investments, while also addressing one partner’s student loan or credit card debt.
The Influence of Personal Experience and Social Dynamics
Millennials’ own experiences, such as being children of divorce, might play a role in their predisposition to protect their interests. Prenuptial agreements offer an opportunity to discuss how a divorce might handle issues like compensating a partner for leaving the workforce to care for children.
The changing social dynamic also plays a part in millennials’ approach to marriage. Many millennials we discuss prenuptial agreements with are very committed to their partners, but recognize that they may actually face a divorce and want to plan for such a possibility. Rather than assume that the marriage will last until death, this generation is realistic that many marriages end in divorce, so planning for that possibility is a wise financial decision.
Aiello & DiFalco: Supporting Millennial Couples
As prenuptial agreements become more common among millennial couples, Aiello & DiFalco is here to support their unique needs and help them navigate the legal process. Our experienced attorneys understand the challenges millennials face and are dedicated to providing guidance and legal services tailored to their specific circumstances. Contact us today to discuss your prenuptial agreement needs and learn how we can assist you in safeguarding your assets and interests.