Post COVID-19 even more couples started to consider prenuptial agreements. It seemed that the global pandemic gave us all time to reflect on our life choices and futures. This is not the first time in history that prenups gained popularity though. A shift happened between the Baby Boomer era and the Generation Z era. Divorce rates started going down and more individuals started to consider prenups.
If we look back at the divorce rates for various generations it is easy to see why this shift happened. Born into the prosperous post-war era between 1946 and 1965 Baby Boomers got divorced at a much higher rate than any other era of individuals. They were the first era to see no-fault divorces.
Generation X, or those born in between 1965 and 1980, stayed married at much higher rates than their parents. Next came Millennials who got married and divorced at a much lower rate than their parents. The newest generation today are our Generation Z members, or those born after 1996. It is still too early to determine if they will follow in the footsteps of the two generations before them, putting off marriage until later in life and divorcing less, but time will tell.
One thing is for certain though, which is the fact that each generation has learned from the previous one. Millennials and Gen Z individuals are already thinking of ways to protect themselves before getting married. One of the steps they have taken to best protect their financial future is to invest in a prenuptial agreement. Today, we go over the benefits of prenups and the reasons why you might want to consider one.
How a Prenuptial Agreement Offers Protection
A prenuptial agreement protects the rights and obligations of both parties with respect to property, assets, and debts in the event of a divorce. There are several areas to cover in a prenup, which include but are not limited to the following:
- Distinctions between marital and separate property
- Protections against the debts of your spouse
- Disposition of property in the event of separation, death, or incapacitation
- Provisions for children from other marriages to ensure they receive a portion of their inheritance
- Protections from estate plans
- Descriptions of the rights and obligations of each spouse in their marriage.
A prenup can also decide which jurisdiction's law would be used to interpret the agreement and where any legal proceedings would be held.
What A Prenuptial Agreement Cannot Protect
A prenup cannot contain any provisions that violate public policy or a criminal law. Additionally, while both parties may waive the right to spousal support in a prenup, the court can still uphold a spouse’s right to such payments in the event of the divorce. This depends on need and whether the other spouse can afford to make such payments.
Child support cannot be established in a prenup. Instead, the court will follow New York State guidelines.
When it comes to the enforceability of a prenup, both parties must have entered the agreement voluntarily and not under duress. Additionally, the prenup must have been fair and both individuals must have been honest and transparent about their finances, debt, and property.
Do you need help establishing a prenuptial agreement in New York? Contact our firm online or call us at (646) 603-0522 to schedule an initial consultation today.