Benefits of the Prenup

 Posted on September 11, 2018 in Premarital Agreement

Prenuptial agreements are no longer reserved solely for the rich and famous, though it may appear that way through media coverage. A prenuptial agreement, commonly referred to as a prenup, is a legal document that determines how assets, debts, finances, and property will be managed during a marriage or after a marriage if it comes to an end. In the past, prenups have been seen as taboo or damaging to a relationship; however, millennials often request prenuptial agreements, causing an increase in this form of legal documentation.

What Exactly Is a Prenup?

Prenuptial agreements are most commonly known for financial division; however, they cover more than just “who gets the money.” Although prenups are important in regards to officiating financial matters, they can also assist couples in managing prior commitments or obligations like children and ex-spouses. The document can help those with substantial assets or debts avoid conflict later in the marriage. Prenups are important because they take precedence over state laws regarding divorce and marital property, putting control into the hands of the couple requesting the legal documentation.

The Statistics

The American Academy of Matrimonial Lawyers (AAML) has been keeping a close eye on prenuptial agreements for years. According to their 2016 survey, 51 percent of attorneys have seen an increase in the number of millennials requesting prenups. The millennial generation is not the only ones seeking out financial security. Sixty-two percent of participants noticed an increase in the total number of clients asking for prenups over the last three years.

Some experts attribute the rise in prenuptial agreements to the age at which most couples are tying the knot. According to the U.S. Census Bureau, the median age of first marriage in 2017 is at an all-time high. Men are recorded to be getting married at 29.5 years of age and women at 27.4. Each year the median age continues to increase. Age affects prenuptial agreements because men and women are now getting married with more assets and greater financial stability, thus they utilize prenups as a safety net.

The Benefits

Though prenuptial agreements have been looked down upon historically, there are many benefits attributed to the legal document:

• Openly discussing finances and eliminating any hidden assets from coming up later in the relationship;
• Learning to communicate and compromise with your spouse on difficult topics;
• Keeps all previous assets from a marriage safe; and
• Avoiding future financial burdens if your marriage comes to an end down the road.

Contact an Experienced Marriage Law Attorney

If you are on the road to marriage, signing a prenuptial agreement is a practical measure that can be taken to ease minds about the future and lifelong commitment that is about to be made. Our DuPage County marriage law attorneys will design your prenuptial agreement to meet the needs of both spouses. Allow our experienced attorneys to help make your financial decisions simpler. Contact us at 630-472-9700 for a free consultation.

Sources:

https://www.streetinsider.com/Press+Releases/Prenuptial+Agreements+On+The+Rise+Finds+Survey/12179970.html

https://www.census.gov/data/tables/time-series/demo/families/marital.html

https://www.marriage.com/advice/prenuptial-agreements/why-has-there-been-a-rise-in-the-number-of-prenuptial-agreement/

http://time.com/money/4216559/prenup-marriage-wedding-planning/