Ready to protect your assets before marriage?
You are not alone. Nearly half (47% of millennials) who have gotten engaged or were married had a prenuptial agreement according to a recent poll by Axios.
And guess what…
The trend is skyrocketing.
The honeymoon phase is real and marriage is magical. The problem is we live in a country where the divorce rate for first-time marriages hovers around 40-50%. In other words, for most couples at some point, they will be forced to divide assets, debts, and everything they’ve built with their spouse.
Without an iron-clad prenuptial agreement, your financial future is left to the state laws which define exactly how your assets will be divided. Trust me, if your marriage does not last those laws probably do not work in your favor.
In This Article:
- What Prenuptial Agreements Actually Protect
- Why Smart Couples Are Choosing Prenups
- The Real Cost of Getting (or Not Getting) a Prenup
- How to Approach the Prenup Conversation
What Prenuptial Agreements Actually Protect
A prenuptial agreement is a legal contract you sign before marriage that spells out exactly how your assets, debts, and other financial issues are managed should the marriage end. A prenuptial agreement is just like a business agreement. It’s a legal roadmap for your relationship.
A prenup can include:
- Pre-marital assets: The house you bought before you met your spouse. Investment portfolio, business interests.
- Inheritance/family money: Family heirlooms, trust funds, or expected inheritances.
- Business interests: If you are an entrepreneur or co-owner of a business, a prenup keeps your business out of the divorce.
- Debt protection: Credit card debt, student loans.
- Alimony arrangements: Define upfront instead of leaving it up to a judge.
The biggest myth with prenups is that they are only for the super-wealthy.
Whether you are a teacher with a small savings account or a tech executive with millions in stock options 50% of U.S. adults support prenuptial agreements now.
In fact, the family law firm services industry has changed dramatically over the past few decades. When couples look for help with family law disputes, having a prenup in place can lower the conflict and legal expenses when it’s time to divide.
Why Smart Couples Are Choosing Prenups
Here’s the best part about Prenups
They’re not about planning to fail, they’re about planning to succeed. That’s why so many couples are getting them now:
Financial Transparency From Day One
Creating a prenup forces couples to have these important discussions about money, debt, and financial goals. These conversations have been shown to strengthen relationships because couples understand exactly what is at stake before the big day.
Protection For Both Spouses
Contrary to old-fashioned beliefs, prenups can protect the financial interests of the spouse that may earn less money as well. The spouse with less income can negotiate for spousal support and the higher-earning spouse can protect their pre-marital assets.
Reduced Divorce Costs
Divorce is expensive even with the most amicable settlements. The average cost of divorce is $7,000 to $15,000 per person but can climb to over $100,000 per person on complex cases according to the American Bar Association. When you have a prenup in place, most proceedings are over faster.
The best part? The stigma about prenups is fading. Younger generations are embracing them as responsible financial planning, not some indicator of impending doom.
The Real Cost of Getting (or Not Getting) a Prenup
Let’s talk about the money.
Prenuptial agreements cost an average of $8,000 per couple when working with a family law attorney. On the flipside, there are now online services where you can file a basic prenup for as little as $599.
Compare that to the cost of NOT having one:
- Average Divorce Costs: $7,000- $15,000
- Complex Divorce Cases: $100,000 +
- Lost Assets Due to State Division Laws: Hundreds of Thousands
- Emotional Stress: Priceless
The Math Is Pretty Clear
And remember all of those legal fees and expenses associated with contested divorce cases? Let’s not forget about time. Divorce proceedings when couples don’t have a prenup can last months or even years.
With a prenup in place, many of the time-intensive, contentious issues are already out of the way.
Look, I know you’re thinking about the romance factor.
Talking about divorce before you’re even married is not exactly poetic. But what’s really unromantic?
Fighting over money in court for two years.
The couples who have the “prenup talk” end up feeling MORE secure in their marriage, not less.
How to Approach the Prenup Conversation
The one place where most couples fail.
How do you talk to your spouse about a prenup without them thinking you are already planning your exit strategy?
Start With The “Why”
Avoid saying “We need a prenup” and instead go with:
“I’ve been thinking about our financial future together and wanted to make sure that we are both protected and completely understand each others’ financial situation.”
Focus on Protection, Not Suspicion
Have this conversation from a place of looking out for each other instead of one person trying to protect themselves at the other person’s expense.
Emphasize that it’s about clarity and fairness between both partners.
Suggest Learning Together
Researching prenups or meeting with a local family law attorney to discuss options can be a joint learning opportunity for both parties. The more education couples have, the more logical and mutually beneficial their prenup will be.
Give It Time
Couples don’t just hash out all these details over one conversation. Drop the seed in the first conversation and let your partner think about it.
Remember: the best time to have a prenup conversation is when you are just starting your engagement and not three weeks before the wedding.
Common Prenup Myths (Busted)
Myth 1: “Prenups mean you don’t trust your partner”
Reality: No, it means you’re both mature enough to plan for all eventualities.
Myth 2: “Prenups always favor the wealthy spouse”
Reality: A well-drafted prenup can protect both parties and ensure fairness.
Myth 3: “Prenups aren’t romantic”
Reality: Protecting each other’s financial future is pretty loving.
The Bottom Line on Asset Protection
Prenuptial agreements have gone from being for the 1% to the next standard contract for any couple that takes their financial future seriously.
They are not a declaration that you think the marriage is going to fail.
It’s removing the financial uncertainty so you can focus on building a life together. The process of crafting a prenup, having deep conversations about money, goals, and values. The experience often makes marriages stronger.
Smart couples are starting to realize that a little planning now can save some major headaches (and dollars) later.
Wrapping Up Your Financial Future
Prenuptial agreements are no longer the unromantic legal documents they once were. They are becoming the norm for couples who want to start their marriages with complete financial transparency.
Whether you are bringing significant assets to the marriage or just want a clear understanding of finances with your spouse, a prenup puts you in control of your own future, instead of leaving it up to state laws, court decisions, and a litany of other third parties.
The key is to enter the conversation honest, open, and with the well-being of both partners in mind.
If you are getting married, ask yourself this:
Would you rather make these important financial decisions together when you love each other and respect each other or have them be made for you by lawyers and judges if it all falls apart?
The choice is up to you. But with prenup usage rates exploding and the cost of divorce climbing, smart couples are overwhelmingly choosing the security and clarity that comes with planning ahead.
Because at the end of the day, that financial security is the rock-solid foundation you need to build something beautiful together.