Marriage and Money: Why Millennials and Gen Z Are Fine with Prenups

Why Younger Generations Are Embracing Prenups

It seems prenuptial agreements (prenups) are finally shaking off their old ‘passion killer’ reputation of recent years.

If you’re thinking about marriage, you’ve probably heard the view that asking your husband or wife-to-be for a prenup means you simply don’t trust your partner. Not so for a new generation of soon-to-be-marrieds, however. For younger adults, money talk before marriage does not mean you’re forward planning for a divorce.

Millennials (born 1981 – 1996) have led the shift, according to latest findings, and Gen Z (born 1997 – 2012) is now showing an even greater appetite for financial prudence before tying the knot. A YouGov survey found that 37% of their sample aged 25 to 49 years-old thought pre-nuptial agreements were a good idea. Support for prenups was even higher amongst Gen Z (age18-24), with 47% in favour.

With those showing support for prenups getting younger and younger, the evidence suggests we’re seeing a generational shift in attitudes towards marriage and financial planning. What's driving the change? Let's take a closer look at prenups and their increasing popularity.

First, what is a prenuptial agreement?

A prenuptial agreement (prenup) is a legal contract you and your partner sign before marriage that lays out what happens to your finances if you ever separate. Think of it as a financial roadmap for the ‘what if?’ scenario. While it might not be the most romantic of arrangements, it’s still a practical way to establish clear expectations and protect each partner’s financial interests.

A prenup can cover things such as:

• Property ownership
• Financial assets and savings
• Debts and liabilities (ensures one spouse isn’t held responsible for the others
  pre-marriage debt)
• Business interests
• Inheritance and family wealth

By clarifying financial matters before marriage, prenups can help avoid conflict down the line, ensuring that both parties enter the relationship with mutual respect and understanding.

Why are Gen Z and millennials embracing prenups?

For years, prenups carried a stigma, seen as something only the ultra-wealthy or deeply sceptical would consider. Younger people, however, are showing a stronger interest in financial planning before marriage, treating it as a normal and responsible step. So, let’s look at some of the possible reasons for the trend:

• Financial independence: Millennials and Gen Z are focused on protecting their savings, side businesses and assets, especially with student loans in the mix. They are getting married later in life, often establishing careers, buying property or building financial stability. As a result, there is a focus on protecting their assets as their legal situation changes as one half of a married couple.
  

• Changing views attitudes marriage: The liberalisation of divorce law, combined with changing attitudes and women’s greater economic independence, are among factors behind a rise in the number of divorces in the last 50 years. In just 10 years, divorces in the UK rose from 50,000 in 1971 to 150,000 in 1981, for example. More recently the number of divorces has fallen steadily, but this may have more to do with the fact that fewer people are tying the knot in the first place. Today, there are just two marriages for every divorce each year.
  

• Economic caution: Despite a declining divorce rate in recent years, prenups are still seen as a smart financial decision in these straitened times. With economic uncertainty and rising living costs, younger people are viewing prenups as a way to protect their assets and avoid financial disputes in case of separation.
  

• Legal awareness: Thanks to easy access to legal and financial information online, Gen Z and Millennials are perhaps more informed than previous generations about the benefits of prenups and how they can provide clarity and protection.

Things to consider for your prenup?

A prenup by definition is a contract entered into before marriage. You do not need to be
married to get a prenup, but you must be planning to marry. Here are key points to
consider:

• Timing is crucial: a prenup must be signed at least 28 days before the wedding to
  avoid any appearance of duress or pressure.
  
• Not for unmarried couples: prenups are specifically for couples intending to
  marry. Unmarried couples may consider other legal arrangements to protect their
  assets, such as a cohabitation agreement, or a joint ownership arrangement to
  protect their assets.
• Already married? If you’re already married and want similar protections, a
  postnuptial agreement may be an option. This contract works similarly to a
  prenup but is signed after marriage.
  

Remember, the primary purpose of a prenup is to outline how assets will be divided in
the event of a divorce, making it a document specifically designed for soon-to-be-
married couples.

Are prenups legally binding in the UK?

In short, not automatically but courts are taking them more seriously.

A prenup can hold up in court if:

• both partners fully disclosed their finances before signing
• each person got independent legal advice
• the agreement is fair and doesn’t leave one person financially struggling
• neither partner was pressured into signing

At Belderbos, we ensure prenups are drafted correctly so that they will be regarded by
the court as a qualifying nuptial agreement which will increase their likelihood of being
upheld in court.

Will Prenups Become Legally Binding in the Future?

There have been discussions about making prenups legally enforceable under certain
conditions. In 2014, the Law Commission proposed creating “qualifying nuptial
agreements” - a type of prenup that would be legally binding if both people had legal
advice and disclosed their finances fully.