What Is the Number One Reason Millennials Are Increasingly Seeking Out Prenuptial Agreements?
We previously discussed three circumstances that make having a prenuptial agreement (“prenups”) non-negotiable: Second or subsequent marriages with children, a spouse bringing a family business into the marriage, and/or one spouse having more assets than the other. However, for a number of young people who are seeking prenups these days, protecting wealth is actually not their main priority. You might be surprised to find out that, for a number of millennials, it is debt that is actually the primary concern as they contemplate getting married. Interestingly, not only are millennials seeking out prenups at a greater rate than previous generations, but they are also divorcing at lower rates than previous generations as well. Could there be a connection?
It is entirely possible that entering into prenups more frequently is a contributing factor, along with the fact that millennials are getting married later (or not at all), and, according to researchers, are more selective about who they marry. Some also say that more prenups are being sought out because the millennial generation witnessed many of their parents get divorced. As a result, it perhaps comes as no surprise that this generation is doing prenups differently, and has a reason to focus them more on liabilities versus assets.
A Simple Solution to A Sometimes Unforeseen Disaster
Prenups can not only help ensure that both parties are made aware of the debt that each one is bringing into the relationship, but also help with putting together a plan to manage that debt and help ensure that there are protections in place; should one individual take on more debt during the marriage itself. Whether it’s finding out that one’s partner has taken out a loan in their name, or in their own name; regardless, given the laws on equitable distribution, chances are, upon divorce, you may very well be responsible for a good portion of that debt that the other person took out without your knowledge.
An easy way to address this issue directly and ensure that it doesn’t become a problem – or even something that you have to worry about – is to simply state, in a prenup, that any debt taken out solely by one person is that individual’s responsibility, while any loans taken out together, co-signed for, etc., are owned together. Prenups can address this and essentially anything that is legal; for example, if a couple wants to address who will pay for a particular pet’s expenses and/or who owns that pet, regardless of what happens in the marriage, that can end up saving a lot of money in court costs later on. Prenups can also address circumstances that are entirely specific to the couple itself — what happens if one person goes back to school, allocation of certain types of debt accumulated during the marriage, such as student loans, circumstances surrounding starting a business during the marriage, making a particular risky investment, inheritance of a particular piece of personal property, etc.
Speak with One of Our Florida Family Law Attorneys to Find Out More
As some have said, many prenups today are more about how to stay married as opposed to what happens if you get divorced. In this way, for many couples, they are a chance to sit down and communicate about expectations and moving forward.
If you have any questions about prenups, contact our Orlando family attorneys at Greater Orlando Family Law today to find out how we can help.