Many people think that prenups (prenuptial agreements) kill the romance. However, the CT Post asks, in its article, “Millennial Millionaires and Their Prenups-What They Need to Be Thinking About,” would you still think the same if you had a lot to lose, if your marriage ended in divorce?
The use of prenups has increased five times in the past two decades for millennials, according to the American Academy of Matrimonial Lawyers (which defines millennials as those ages 18 to 34). Celebrities like Kylie Jenner and Justin Bieber have signed premarital agreements with their partners, and many young marrieds active in the startup world think that premarital agreements are a wise move.
A prenup lets entrepreneurs protect what they have worked so hard for. Up-and-coming millennials and entrepreneurs are waiting longer to get married. As a result, they typically have more assets, accumulated wealth from a 401(k) and stock options and possibly real-estate ventures. They could potentially lose a lot, if a prenup isn’t put into place. They also need to protect their intellectual property, and the very idea of a business has to be protected. For example, with Kylie Jenner and her makeup line, she decided to shield what assets she has now and those she’ll accumulate throughout her marriage. Her business won’t be communal property.
A marriage is a two-person team, so a couple should carve out some partnership in their marriage. This is commonly the family home or the greater salary, but investment properties are best left undivided. If you think a prenup is good for you and your fiancé, remember these guidelines:
Work with a business attorney. Your legal counsel must be business savvy and understand how to best plan for future contingencies. Each party should also have their own separate attorney for a prenup to be valid.
Plan ahead with a prenup. Don’t begin arranging for a prenup a month before your wedding. If you have significant assets, it will take some time to draft.
Look at the details. Determine if your partner has offshore accounts. It also matters where you will reside. Some techies, originally from China or India, have international attorneys that increases the time required to draft an agreement.
Every prenups is unique. There’s no one size fits all. There are many variables and they’re unique to each relationship.
Experiencing a divorce is a difficult time, and a prenup may give you some well-deserved protection.
Reference: CT Post (November 5, 2018) “Millennial Millionaires and Their Prenups -- What They Need to Be Thinking About”