Once thought to be necessary only for the very rich, marital property agreements, also known as prenuptial agreements or “pre-nups” have become significantly more common across a wide range of socio-economic levels in this country.
A variety of factors may be responsible for this trend.
One factor is undoubtedly the media, including the internet, which has increased awareness of what these agreements are about, and why a person should consider having one.
Another factor is the rising economic power of women. These days, women are more likely than ever before to bring substantial assets to a marriage. Years ago, the vast majority of premarital agreements were initiated by men, but today it is increasingly common for women to ask for one.
One of the biggest factors, though, overall, may be the fallout from the significant divorce rates of the past few decades. As a result, a growing number of people are entering into second marriages, and even third or fourth marriages. Subsequent marriages give rise to an interest in marital property agreements for at least two reasons. First, this segment of the population is likely to have had children by those previous spouses. Having children from a prior marriage is a commonly cited reason for wanting a marital property agreement: the parties want to protect their children’s inheritance from any potential fall-out of the next marriage. The other reason that high divorce rates may contribute to the increase in marital property agreements is that many divorced people have bitter memories of their last divorce battle, and hope that the planning of a premarital agreement will make a subsequent divorce easier, at least financially. Even for couples who have not been married and divorced before, many people have parents, siblings or friends who have had difficult divorces, and they look to a marital property agreement as a means to avoid that kind of trouble themselves.
In the past, marital property agreements have often been viewed as “unromantic,” but this stigma is fading as more and more people view them as a straightforward means of financial planning upon entering into marriage. At the same time, the law concerning the enforceability of marital property agreements has become clearer, so people can enter into them with more certainty.
Marital property agreements are more recognized than ever before to be a valuable means to protect assets, avoid expensive “war of the roses” type divorces, and to protect children from prior marriages. And this works for everyone, not just for the rich and famous.
