California millennials might be requesting prenuptial agreements in greater numbers than their parents did. According to a survey by the American Association of Matrimonial Lawyers, more than 60% of attorneys say requests for prenups are on the rise, and of those attorneys, 51% report that more millennials have asked for them.
Ideas about prenups have changed. Once viewed as a document that could potentially damage a marriage before it even started, a prenup is now seen as a practical solution that can protect the assets people have when they enter a marriage. With millennials marrying at an older age than previous generations, they are more likely to have valuable assets compared to younger couples. Millennials have a strong interest in investing but are cautious about keeping their finances safe. A prenup can also be used to protect future finances. For example, people who expect to get an inheritance or a gift from their parents may want to include that in the agreement.
Increasing numbers of women in the workplace are also driving the rise in prenups. More women have more at stake financially, including the possibility of having to pay alimony. Couples can include an agreement in the prenup that neither person will be required to pay alimony to the other.
A prenup can make the process of property division simple and straightforward if a divorce does happen. In addition to saving the time and energy that negotiating an agreement or going to court would require, the prenup can also help the couple avoid some complicated issues. For example, in the prenup, they might agree that the person with the retirement account can keep it in a divorce. Dividing a 401(k) or pension plan can be a complex process requiring the preparation of a document known as a qualified domestic relations order.