The Rise of the Millennial Prenup: Expert Reveals Average Age of Those Requesting Prenuptial Agreements Hits All-Time Low

• Average age of prenups has plummeted by 10 years
• Average age of prenup enquiry has gone from 40’s to those in their 30’s
• Huge increase in 20-30 year olds protecting their assets and finances
• ‘Post Nups’ – a financial agreement that is signed after a marriage – are also on the rise amid fears a marriage will go wrong due to previous upset

Insights from a family law expert reveal that the average age of those requesting a prenuptial agreement to protect their assets and personal finances against their spouses has decreased by 10 years in the last five years.

Teresa Davidson, Head of FamilyLaw at Winston Solicitors, reports that the average age of her enquiries to take out a prenuptial agreement when getting married in the UK has gone from those in their forties to now aged around 30.

The data, from Winston Solicitors, also shows an almost 100% increase in enquiries from those in their 20s enquiring about prenuptial agreements over the last five years.

Teresa states that this is due to a heightened awareness of the financial risks of marriage and transparency regarding divorce rates as well as more openness with younger couples to discussing financial issues as they enter a relationship.

The most popular assets that young people are protecting as part of a prenuptial agreement are:

• Investments 30%
• Cash savings 20%
• Business assets 10%
• Pensions10%
• Inherited property 10%
• Inherited land 10%
• Cars 5%
• Jewellery 2%
• Antiques 2%
• Pets 1%

Why are younger people requesting pre-nuptial agreements?
Teresa Davidson says: “There has been a shift in social stigma. Traditional preconceptions regarding pre-nuptial agreements are changing. They are no longer a “taboo” subject and there has been a societal shift in attitudes towards them.

“Previously pre-nuptial agreements were perceived as negative and unromantic, created an imbalance of power and were only for high-profile or wealthy individuals.

“Nowadays, they are seen as much more positive and important documents which allow couples to be more autonomous and less subject to the vagaries of the court system. The likes of high-profile celebrity divorces and the media coverage surrounding them, such as Ben Affleck and Jennifer Lopez, also highlight the huge financial risks that come with marriage.”

‘Post-Nups’ on the rise
Teresa has also experienced a recent increase in post-nuptial agreements and says that while there are still a small number of couples looking to take out an agreement to protect their assets after getting married this is also on the rise with enquiries increasing by around 50%.

This is particularly common amongst individuals who are getting married for a second or third time and are keen to take a more practical and ‘business-like’ approach to marriage by recognising the importance of planning to protect their assets in case the marriage breaks down.

They may also have had a bad experience or a dispute over assets or income in earlier marriages and don’t want to repeat this. They may also have children from their earlier marriages and want to ring-fence assets to pass onto them, and not risk losing them to their new spouse or civil partner.

Often, post-nuptial agreements are entered into when there has been insufficient time for a pre-nuptial agreement to be prepared in contemplation of marriage. They have the same advantages as a pre-nuptial agreement.

Post-nuptial agreements can be used during the marriage when there is going to be a significant change. For example, one party is about to inherit or be gifted assets they want to protect.

They can also be used where, for instance, the couple are considering a separation but have hopes the relationship will last. A post-nuptial agreement can set out what would happen if things don’t work out. Perhaps one party has been unfaithful, so there is a loss of trust, but they are trying to work through things.

Teresa’s top tips for requesting a pre-nup or post-nup

Timing
Allow good time for the document to be drafted and for legal advice to be obtained as to the effect of the terms. The agreement will need to be properly considered before it is signed.  Start the discussions regarding the agreement as soon as possible to allow sufficient time for this and to ensure that there can be no suggestion that either party was “pressured” or placed under any duress.

(The Law Commission, in its report on the Matrimonial Property, Needs and Agreements published in February 2014, recommended that agreements are made (i.e. finalised and signed) at least 28 days before the date of the wedding) – the preparation and negotiation can take several months. They can be done quicker but this is not ideal.

Independent Legal Advice
It’s important that both parties entering into the prenuptial agreement obtain independent legal advice so that they are fully aware/understand the terms and implications of entering into the agreement.  This will impact its later enforceability.

Transparency
Provide full and frank financial disclosure of the parties’ respective financial circumstances so that each party knows, from the outset, the value of the assets.

Realism
The agreement needs to be “fair” to be upheld so therefor needs to ensure neither party will be left in dire financial straits – this needs to be thought about by both parties. What does “fair” mean to them?