It has become more common for couples who marry to draft a prenuptial agreement. This increase is driven by millennials who start careers before they marry, and they are on more often on an equal footing than past generations when it comes to their income.
Prenups are traditionally utilized when one spouse has a much higher income, a large number of assets, or was previously married. However, there are a variety of other smart reasons for drafting one.
Why millennials are doing it
Couples are now considering these reasons for drafting a prenup as well:
- Long-term investments or inheritances: This can include a new start-up, a stake in a family business, vesting opportunities, stock options, retirement accounts, or other long-term financial arrangements, including income from inheritances and trusts.
- Planning for kids: It can make sense to outline financial responsibilities, particularly if they agree that one will step back from a career as the family grows. Accommodations are in place if a divorce occurs while one spouse’s career is on hold. Children from prior marriages often require distinct carve-outs from income accumulated prior to the upcoming new marriage.
- Pets: Those who wait to marry will often have a dog or pet that they are deeply attached to. It can lead to a lot of anger if there is no arrangement in place.
- Debt: Spouses may have different levels of comfort regarding a large amount of pre-existing debt on credit cards or student loans.
Fools rush in
Drafting a prenuptial agreement on the eve of the wedding is ill-advised and could weaken its value if perceived as a condition for the marriage. Conversations regarding prenuptial agreements should happen well ahead of time so that the agreement covers all significant issues.
Those with questions should speak with an experienced Board-certified Family Law expert attorney in Collin County, Dallas County, Denton County, Midland County, Ector County, and surrounding areas of Texas. Their experience in these matters can help you strengthen the validity of a prenuptial agreement or other legal arrangements.