Some couples balk at signing a prenuptial agreement. They think having such a document means that they expect their marriage to fail. However, more and more millennials nowadays are signing prenups before they go to the altar. Young couples today have an important reason to sign prenuptial agreements.
Many couples do not sign prenuptial agreements expecting divorce, but to prepare for one should it come. Divorce involves the division of assets, including money that you may have accumulated before your marriage. This is where prenuptial agreements make an important difference.
Protecting your assets
As Business Insider explains, a prenuptial agreement covers what will happen to your assets if you should divorce. If you earn money for a number of years before you marry, you may designate that money as your separate property in a prenup. Also, a prenup protects you from becoming responsible for debt your spouse brings into the marriage. Even if you divorce, you will not have to pay a portion of the debt of your ex-spouse.
Increase in millennial prenups
According to the Business Insider article, millennials are more likely to sign prenuptial agreements because they are waiting longer to get married. This added time means millennials will acquire more money and property before they enter into marriage, assets that millennials want to protect from division in a divorce. The burden of student loan debt some millennials bear is also why some young couples want to sign a prenup so that the burden does not spread to another spouse.
Prenuptial agreements especially play a part in protecting the assets of millennial women. Nowadays, more single women are attaining college degrees, earning high wages and buying their own homes. If they want to marry, they will likely want to protect their earnings and property before entering into a union.