Family Law Prof Blog

Editor: Margaret Ryznar
Indiana University
Robert H. McKinney School of Law

Sunday, August 13, 2017

Prenups More Likely for Millennials

From the Washington Post:

Amanda Farris works in accounting and likes to “play things safe” when it comes to her savings and investments. Her boyfriend, Andy Salmons, owns a coffee shop and is a serial entrepreneur not afraid to take risks.

The two have been together for nearly four years and are talking about marriage. But before they vow to stay together for better or worse, they’ve agreed to come up with a plan for how they would protect their finances on the — slim, they hope — chance that their relationship should head south.

“I wanted to find some middle ground,” said Farris, 31, adding that a prenuptial agreement would separate her retirement savings from Salmons’s business and the debt he took on to launch that and other ventures. “It’s important for us to keep things separate,” Salmons, 32, said. “I don’t ever want my decisions to put her in jeopardy.”

As more millennials put off marriage until later in life than previous generations, they are more likely to have careers, businesses and property. And that, financial advisers say, has made them more protective of what they have built. As a result, the prenuptial agreement is starting to lose its taboo.

For generations, the agreements have proven a sticking point for couples who deemed them unromantic. In some relationships, the contracts can signal a lack of trust or suggest that one person is foreseeing an end to the union.

But over time, the equation for when and why two people should marry has changed. In the 1970s, about 8 in 10 people had married by age 30, according to a U.S. census report. In 2016, that same percentage wasn’t reached until age 45.

Millennials are also less inclined to get married while they’re young and broke. More than half of people in their 20s and 30s say it is important for them to be financially secure before they get married, according to a 2015 survey by Allstate and the National Journal.

Read more here.

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