By: Pascal Michel
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Miami Family Attorney: 4 Reasons Prenups Are on the Rise
As a Miami family attorney, Pascal Michel routinely assists clients who are in the process of making major life changes. One of the happier events, of course, is the planning of a marriage. Yet, the way people are approaching marriage has changed quite a bit; certainly within the past decade and more recently too. People are no longer simply jumping into commitment, but recognizing that, although it’s intended to be a lifelong commitment, it does not always work out that way. Because of this, prenuptial agreements have seen a five-fold increase over the past two decades, with 62%of firms reporting a hike in the past three years. Why the shift? We’ll explore some of the reasons why prenups are increasing in
1) People are Getting Married Later in Life
The median age for first marriages has been on the rise, slowly climbing since the 1960s, according to US census data. Back then, women were getting married at age 20 and men at 22. By the 1990s, women were waiting until 23 and men until age 26. Now, women are waiting until they’re nearly 28 and men are approaching 30. This not only gives them more time to mature and make sounder decisions but also means more have finished college and are starting to accrue their own wealth. As
2) Those Getting Married Often Have Student Debt
The average new grad owes a whopping $37,172 in student loans, and many are in default right now. This adds a considerable strain, as current grads are spending about one-fifth of their total income on repaying student loans, and in order to do so, about half are cutting back on travel, clothing, entertainment, and dining. Roughly40% have lowered their budgets for rent and mortgage too. The stress of finances can cause issues in a marriage, to begin with, but it’s also worth noting that most loans are repaid over a 10-year period, with some extending 20or more. Given these issues, it’s perfectly understandable that newlyweds do not want to be locked into the debts of their partners should the debts out last the union.
3) Today’s Couples are Gearing Up for Large Inheritances
Babyboomers, the parents of those getting married today, presently hold about 70%of the country’s disposable income. Current estimates suggest the children of boomers will inherit $30 trillion; the largest of any generation thus far. While boomers may still spend a considerable amount of that on themselves in their golden years, there will be a massive transfer of wealth, and not simply from the one-percenters. Savvy couples want to ensure that the wealth their parents worked hard and sacrificed for will stay in the family, and are doing so by creating prenuptial agreements.
4) Today’s Engaged Couples Come from Single-Parent Homes
In 1960, nearly 90% of children lived in a home with both parents present. This steadily reduced until about the 1990s when it leveled out at about 70%, according to Census stats. Furthermore, divorce has been steadily on the rise for virtually as long as divorces have been tracked. Starting in1920, the divorce rate was at about 1.6 per 1,000 people. With the exception of a brief period after World War II in which it jumped up to about4.3 and then reduced again, charts show a fairly steady upward curve, with the divorce rate peaking at about 5.3 in 1981. Ergo, divorce rates were at their absolute highest when today’s couples were children. There is one
Retain an Experienced Miami Family Attorney for Your Prenup
The good news is, divorce is at an absolute all-time low. The steps today’s couples are taking, such as marrying older and marrying smarter, are giving them opportunities their parents didn’t have, and thusly, their children are being raised in more stable environments too. This is great news. However, all these things have led to more couples having prenuptial agreements too, and that’s perfectly ok. A prenup not only protects you but it can also protect the wealth your parents leave you and ensure your children are cared for if you and your beloved should ever part ways. Moreover, making these kinds of arrangements now, while both of you are on the same page, will reduce the anguish if you do part, purely because everything has already been decided and agreed upon. Because of this, it is one of the most loving things you can do for your future spouse.
Miami family attorney Pascal Michel not only handles prenuptial agreements but also postnuptial agreements for those who have already tied the knot but want to pave the way for a secure and loving future. He also routinely handles matters like estate planning, thus ensuring your prenup will cover the things that matter for generations to come. To get your free premarital legal consultation, call (305) 834-8432 or complete our online