People used to think that a prenuptial agreement was for couples who had no intention of staying together. They did not see the value it provides to the marriage and how it provides a good foundation for a good marriage.
But millennials changed this way of thinking since they removed people’s stigma on prenuptial agreements. They did not see it as a signal that they intended to end their marriage in the future. Instead, the agreement allowed them to clarify financial matters before they got married. It also addressed the realities that the generation is facing.
In case the marriage does not work out, a prenuptial agreement facilitates the work of divorce attorneys. These attorneys are necessary when it comes to a divorce involving a huge amount of assets. Despite this, couples should still work with their respective attorneys to ensure an orderly separation and remain on good terms with each other.
Here are the ways millennials redefined how people looked at prenuptial agreements.
Millennial Women and Prenuptial Agreements
In the past, men were the breadwinners of the family. But in recent years, things have become more fluid as more millennial women entered the workforce and started successful careers. Some millennial women are even earning higher than their partners. With this, they face the reality of paying alimony and marital debt in case their marriage ends. They will also see their savings divided between them even if they contributed to the majority of the funds.
Due to this, a good number of millennial women are requesting to have a prenuptial agreement before they get married. The agreement is one way to protect themselves and give them a sense of independence. It also allows them to feel secure when they marry someone still dealing with debt or student loans.
Millennials also want to protect their assets when they get married. Many millennials are marrying later in life, which allows them to establish their careers and acquire assets. With this, millennials already have a substantial amount of assets when they get married.
Due to this, they prefer having prenuptial agreements with provisions protecting their assets in case of a divorce. Some states divide the money and income of couples once they get married. But millennials prefer to create their own rules when it comes to their finances before marriage.
They prefer to keep their assets and finances separate. When it comes to joint financial obligations, they share the responsibility using a joint account. In this situation, each partner will have no financial issues in case the marriage ends.
Aside from finances, millennial couples in tech also ensure that any intellectual property (IP) owned by one partner is not included in the settlement, especially if they acquired the IP before marriage. This modern scenario is reflected in the prenup that they sign before tying the knot.
Dealing with Debt
Many millennials are still struggling with debt even before they get married. The debt comes from credit card balances and student loans, among others. To deal with debt when they get married, they include the way in allocating financial resources to deal with the debt on the prenup.
In this situation, they agree on a percentage of their married income that they should set aside to pay for the debt. This is in contrast to previous practice that couples make random payments of debts using their joint bank accounts.
It is also essential to note that some states automatically consider student debt incurred before the marriage as the couple’s debt once they tie the knot. But a prenuptial agreement allows the couple to define this debt as personal debt. Due to this, the partner who did not incur it will not absorb it in case of a divorce.
When it comes to marriage, millennials see it as a financial engagement. Due to this, they make sure to communicate what they have in mind before they get married. It also allows them to avoid conflicts due to financial issues since these are already defined before the couple gets married.
Millennials are also conscious when it comes to their privacy. With the presence of smartphones and open access to the internet, many people end up posting pictures that some people on it would instead not want to be posted.
To deal with these issues, millennial couples set the ground rules by pitting them into writing, especially regarding images and videos they can share online. This allows them to avoid damaging actions that come after they go on separate ways.
Millennials have focused on being objective when it comes to marriage. Prenuptial agreements allow them to put this into writing, which avoids conflicts in case they get divorced.