You may have noticed that prenuptial agreements are more popular with young people in 2017 than they were for those people’s parents’ generation. Why is this?
While there are numerous reasons — such as the divorce rate — one key reason is the age at which people tend to get married. People are waiting longer than they did before.
For example, in 1970, about 80 percent of people were married by the time they reached 30 years old. That percentage has plummeted for the modern era. Last year, a U.S. Census report found that 80 percent of people were not married until they were 45 years old.
What does getting married later have to do with prenups? It’s simple: Assets.
For example, imagine getting married in 1970. You may be 25 years old. You just finished your graduate program. You have no real assets and you haven’t started your career.
In 2017, though, you’re getting married at 35 years old. Those extra 10 years have been good to you. You started a company, bought a home, and stocked up on other essential assets such as cars, appliances and retirement plans.
Young people today are simply more likely to have assets when they get married. As a result, they want to protect those assets with prenuptial agreements. It doesn’t mean they have more or less faith in marriage than their parents. It’s just that their parents had fewer assets and less need for a prenup 40 years ago.
A prenup is a valuable tool in a divorce. However, be sure you know exactly how it impacts the legal process.
Source: The Washington Post, “Why you’re more likely to have a prenup than your parents were,” Jonnelle Marte, Aug. 04, 2017