Millennials are getting married less frequently, but those who do are getting premarital agreements. According to a survey of the American Academy of Matrimonial Lawyers (AAML), 51% of the attorneys that participated cited an increase in the number of millennials requesting prenuptial agreements. The attorneys surveyed most commonly included “protection of separate property” (78%), “alimony/spousal maintenance” (74%), and “division of property” (68%) in the agreements that they prepared for Millennial clients. The data says Millennials are getting prenups for the same reasons that an older individual might pursue one. That is to protect their premarital assets, business stakes, and lay out their own agreements about alimony and spousal support in the event of a divorce. We can identify several generational shifts that might explain why this is happening.
- Millennials are getting married later in life. That means they are more advanced in their careers. They are bringing more wealth and assets into a marriage. They’re also bringing a record amount of student loan debts.
- Many millennials who seek a prenup own a small business. They are concerned with brand building, and want to protect an asset they hold close to their identity.
- Millennials experienced divorce during childhood. They have already witnessed the financial impacts and pain of a divorce through their parents.
- Consider also women in the workforce: In 1980, only 13% of married or cohabitating women contributed at least half of total household earnings. Today it is 31%. Both men and women are earning money and putting away money in their own retirement plans and pensions.