Why Are Prenups Becoming More Popular?

Why Are Prenups Becoming More Popular?

Talking about or suggesting a prenuptial agreement is traditionally taboo and considered rude, but these attitudes may be changing with the times. More and more people are considering prenups a natural part of marriage. While over half of marriages end in divorce, many couples consider them a necessary formality prior to tying the knot.

How Common Are Prenups?

Younger generations have made many revolutionary changes to our culture, including normalizing the prenuptial agreement. With more people getting married later in life, signing a prenup is making more sense for well-established individuals thinking about marriage.

Some couples see these agreements a way to protect what they’ve built themselves, before starting married life. They work well for certain couples, but may not be a good fit for everyone. As with other legal agreements, prenups have a variety of pros and cons.

Pros and Cons of a Prenup

Signing a prenuptial agreement can be a smart financial decision for some, or a cause for trouble for others. The common pros and cons of these agreements are:

  • Pro: outlines a plan for divorce, so the process is less complicated, should the occasion arise
  • Pro: encourages transparency between you and your future spouse regarding assets, debt and finances
  • Pro: guards against accumulated debt, such as student debt in the event of a divorce
  • Pro: protects family heirlooms and assets
  • Con: can be a cause for discomfort or insult
  • Con: may favor one spouse over another, depending on how it’s created
  • Con: forces conversations about a future that may not happen

You’ll want to carefully consider the pros and cons of a prenup before making any final decisions. While many couples find these agreements helpful in creating a “worst case scenario” plan while protecting their individual achievements and assets, some may not see it this way.

Consulting a professional such as a financial advisor or family lawyer can help you come to the best decision for your situation.