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Prenuptial agreements see surge in popularity among younger couples

Created at 28 Jul · 11:52 PM1 source↑ Market-relevant
IN SHORT

Prenuptial agreements are becoming increasingly common, particularly among younger generations in the US and UK. Couples are opting for these legal contracts to address financial matters and protect assets before marriage, aiming for transparency and fairness.

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Key Numbers

50%US married millennials with prenups
33%US Gen Z with prenups
20%US married couples with prenups
10%UK couples with prenups
33%UK married under-35s with prenups
£130,000Dave's annual income
£5,000Estimated traditional prenup cost
£1,600Wenup semi-automated service fee

Who's Involved

Celine Tsoi
PhD student who opted for a prenup with her fiancé
Charles Mock
Nurse and fiancé who discussed finances openly before marriage
Mark Gilmartin
London lawyer at JMW Solicitors observing increased prenup demand
Becca Gibson
West Sussex resident getting married with a prenup to protect inheritance
Dave Howells
Finance professional and fiancé who sees prenups as pragmatic
Julia Rodgers
Co-founder of US prenup platform HelloPrenup

↳ Why This Matters

The increasing adoption of prenuptial agreements reflects a societal shift towards greater financial transparency and pragmatism in relationships, with younger generations leading the way in proactively addressing potential future financial disputes before marriage.

Key facts

  • Prenuptial agreements are on the rise, especially among younger couples in the US and UK.
  • In the US, nearly half of married millennials and over a third of Gen Z report having a prenup.
  • In the UK, around one in ten couples now has a prenup, with one in three married under-35s having signed one.
  • Lawyers are seeing increased demand from entrepreneurs, influencers, and 'every-day' couples, often to protect inherited wealth.
  • Online platforms offer more affordable and faster routes to obtaining prenups compared to traditional legal services.

Prenuptial agreements are experiencing a surge in popularity, moving beyond the realm of the ultra-wealthy to become a common consideration for everyday couples, particularly those in younger generations. This trend is driven by a desire for financial transparency, protection of assets, and a pragmatic approach to marriage.

Celine Tsoi and Charles Mock, who met two years ago, decided to get a prenup shortly after their engagement. Despite modest wealth differences, they wanted to discuss important financial questions while their relationship was strong. Celine highlighted that the conversation itself can reveal a lot about a partner's approach to finances and commitment.

In the US, research indicates that nearly half of married millennials and over a third of Gen Z have prenups, with approximately one in five married couples overall possessing one. In the UK, about one in ten couples now have prenups, with a significant increase among those under 35.

Lawyers like Mark Gilmartin have seen a substantial rise in demand over the past 18 months, noting a shift from traditional wealthy clients to 'start-up professionals,' entrepreneurs, and influencers. He also observes a growing trend among 'every-day' couples seeking to protect inherited wealth.

Becca Gibson, from West Sussex, is getting married with a prenup to safeguard her expected inheritance from her parents. Despite her first marriage ending poorly, she views the prenup as a fair way to handle finances, especially given her children from a previous marriage and her fiancé Dave Howells' higher income. Dave, a finance professional, acknowledges the unromantic nature of prenups but emphasizes pragmatism, given divorce statistics.

Lawyers attribute the rise in prenups to a desire to avoid repeating painful past separations or witnessing difficult divorces among parents. The increasing accessibility and affordability of prenups, partly due to online platforms, have also contributed to their wider adoption. Julia Rodgers, co-founder of HelloPrenup, notes that couples marrying later often have more assets to protect, including student debt, businesses, or homes.

The 'Great Wealth Transfer' is also a factor, with parents often encouraging their children to ring-fence inheritances. Rodgers argues that prenups have evolved to benefit women by clarifying rights from the outset, fostering honest conversations about life goals and responsibilities, ultimately aiming for happier, more stable marriages.

Frequently asked questions

Prenuptial agreements are gaining popularity due to a desire for financial transparency, protection of assets, and a pragmatic approach to marriage, especially among younger generations.

While previously associated with the wealthy, prenups are now being sought by 'start-up professionals,' entrepreneurs, influencers, and 'every-day' couples, often to protect inherited wealth or business assets.

The rise of online platforms has made obtaining prenups faster and more affordable compared to traditional legal routes.

The 'Great Wealth Transfer' refers to younger generations inheriting significant assets. Parents often encourage their children to use prenups to protect these inheritances.

What Happens Next

01Couples continue to explore prenups as a tool for financial planning in marriage.
02Online platforms are expected to further increase accessibility and reduce costs for prenups.

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Cadence

How It Developed

Prenuptial agreements are gaining popularity among younger couples in the US and UK.
Younger generations, including millennials and Gen Z, are more likely to sign prenups, even without significant wealth disparities.
Lawyers report increased demand for prenups from 'start-up professionals' and individuals seeking to protect inherited wealth.
Online platforms are making prenups more accessible and affordable.
Couples are increasingly using prenups to facilitate open conversations about finances and life goals before marriage.

Sources

T1
'Don't wait until you want revenge' - why prenups are on the riseBBC News

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