Many Millennial Couples look at Prenuptial Agreements as Part of their Communication and Planning
According to The Pew Research Center, marriage rates in the U.S. are declining, with just 26 percent of millennials married. And while divorce rates in America are the lowest they’ve been since the 1980s, they still exist.
In any marriage or divorce, millennial or not, preparation is key. Sometimes this comes in the form of a prenuptial agreement. This is something the millennial couple approaches differently than previous generations. They consider a prenuptial agreement more of an estate planning tool and a step toward a better marriage, rather than a line drawn in the sand before the ceremony ever takes place.
If a couple are not planning on getting married, they should consider a cohabitation agreement. In a cohabitation agreement, you can agree not to have a common law marriage and put things in place regarding the residence and any other assets you share so that in the event of a break-up at any point, there are no questions about who owns what or who gets what.
For millennials, beginning the journey of engagement and marriage or cohabitation, consider the following tips before taking the plunge:
If you’re going to cohabitate, know the laws in your state about what is, and is not, considered common law marriage. Don’t assume that because you’ve lived together for five or more years, the same laws that apply to a married couple also apply to you.
Before you marry, become familiar with family law in your state. Laws and guidelines vary. Being knowledgeable about family law prior to marriage doesn’t mean you are already preparing for divorce. It just means you are informed.
Prenuptial agreements aren’t a bad thing nor a bad sign for things to come. Don’t be afraid to talk about your finances and plan for the future, as there are no guarantees about what will happen. Prenuptial agreements exist to help manage expectations.