When it comes to setting trends, perhaps no one has more influence than millennials. People in their 20s and 30s have been connected to everything from building the gig economy to killing the paper napkin industry. Unsurprisingly, they also drive change in family structures and values.
For example, sources say that millennials are the driving force behind a reported 62 percent increase in the creation of prenuptial agreements. There are numerous reasons why millennials are electing to create a prenup; four reasons are discussed below.
- Millennials are getting married later in life. A generation ago, roughly 90 percent of people had been married by the time they were 30 years old. Sources report that in 2018, just 54 percent of 30-year-olds had been married. Marrying at an older age suggests that people may be more independent and have individual interests to think about.
- Millennials are often more realistic about the future. Millennials may be more pragmatic when it comes to the idea of marriage and divorce, and parties may be more willing to accept the reality that a marriage may end in divorce. Taking precautions to protect themselves in the event of divorce with a prenuptial agreement, seems like solid planning rather than a sign of doubt, cynicism, or indifference.
- Millennials have assets to protect. Because people may be older when marrying, they may be more likely to have property, an inheritance, or a stake in a business to address in a prenup. There may also be significant debt to consider. Millions of Americans carry debts from health care and student loans.
- Millennials have people to protect. People in their 20s and 30s may have children from previous relationships. They may be part of a family business. They could have other family members depending on them for care. Having a prenup can give them the opportunity to protect these parties and their financial interests.
Prenuptial agreements may be a trend among millennials, but they are a wise planning strategy for anyone with assets, people, or endeavors to protect.