The prenuptial agreement, or “prenup,” which has traditionally been used to protect a family’s wealth, is changing these days due to millennials choosing this option for new and creative protections, according to an article in the Wall Street Journal. From social media restrictions to student loan debt, the new prenups address situations that may not even have existed years ago.
Many millennials are children of divorce, which could be a motivation for creating a prenuptial agreement, according to the article, saying that their firsthand understanding of the financial implications of divorce may be what motivates them to seek protection. The new topics addressed in prenups, however, are not the typical protections of wealth, especially because many millennials have not accumulated much yet. Instead, noted the article, these prenups are directed to aspects like future earnings and family obligations.
The report also cited couples who may desire financial separation, wishing “to live like financial roommates” rather than married partners. In this case, a prenuptial agreement helps to counteract the treatment of assets as joint marital property in the event of a divorce.
Debt is another area addressed by today’s prenuptial agreements, as many millennials enter marriages with credit card and student loan debt. In some cases, prenups specify that marital assets used to pay off debt would be reimbursed if the couple divorces.
Couples who wait to bear children may have frozen embryos to address. To protect against one spouse using the embryos without the other’s permission, this too may be written into a prenup. In addition, prenups may address custody, visitation and costs for pets, who are often viewed as family members.
Finally, prenups can put some protections against posting disparaging information on social media.
Prenups can be confusing and complicated. If you would like to talk to an attorney experienced in prenuptial agreements, please reach out to us. Our firm is recognized as a leader in family law/divorce matters throughout Pennsylvania.