Beyonce and Jay Z, Kanye West and Kim Kardashian, Angelina Jolie and Brad Pitt all entered into pre-nuptial agreements before getting married. However, pre-nuptial agreements are n longer just for the rich and famous.
What is a pre-nup?
Pre-nuptial agreements (known as pre-nups) are the best possible way to try to protect assets when individuals get married, although they are not watertight. Pre-nups are not technically legally binding and therefore there is no guarantee that if you have a pre-nup, that will be what will occur if you separate. Pre-nups are however formal arrangements that set out in detail how you would want your assets as well as your future husband or wife’s assets dealt with.
The starting point for the distribution of marital assets on divorce is a 50/50 split and therefore, if a pre-nup goes against that, one party is losing some of their automatic rights. That is therefore why it is essential that you receive sound legal advice upon entering a pre-nuptial agreement.
Why are millennials turning to pre-nups?
The number of millennials requesting prenuptial agreements has increased with millennials wanting more control over their assets and an agreement in place before getting married. The main reasons for this may be:
- An increasing number of individuals are given a significant amount of money from their parents or grandparents for a house deposit or similar and there is external pressure from external parties for an individual to get a prenup.
- It has been said that millennials worry about a potential divorce affecting their future financial situation with statistics showing that over 40% of marriages end in divorce. Around half of these divorce are expected to occur in the first 10 years of marriage and therefore, millennials are much more cautious and want to protect themselves in case a divorce does happen.
- These days, one party may already have equity in a property before getting married or one party may have a larger deposit to put down than their partner. Because of this, millennials are more likely to request a pre-nup to protect these assets.
- Millennials are getting married later in life and are therefore acquiring more and more assets before getting married. The average age at which heterosexual couples marry has reached 35.7 years for women and 38 years for men, according to the latest official figures. Therefore, these parties have more assets in their individual names and want an agreement in place before marriage to protect those.
- Millennials seem to be focused on building their career and ensuring that they are protected in the future.
Entering into pre-nuptial agreements are increasingly becoming routine for the millions of millennials that are getting married. Millennials are increasingly seeing pre-nuptial agreements as security for the future rather than a taboo of the past.
If you are considering a pre-nuptial agreement or a post-nuptial agreement if you are already married, contact us to speak with one of our family law specialists.
Author: Fay Jones