Nearly 50% of Millennials and Gen Z’s approve of getting a prenup. And with nearly 142 million Millennials and Gen Z’s in the U.S., that means about 71 million of us think prenups are green flags. And think of it this way: You wouldn’t consider getting travel insurance a red flag for your upcoming trip. Or health insurance being a red flag for your health. It’s simply a modern tool that helps you work out your finances in any scenario life throws your way. Plus, a prenup does more than talk about divorce. You can also discuss certain aspects of death, incapacitation, and other triggering events. Below, we discuss five ways in which prenups are actually green flags! Let’s dive in.
Green flag #1: Data shows that couples feel closer after getting a prenup
Prenups are not red flags but rather “green flags” because they help couples feel connected, aligned, and on the same page after the process is completed. In fact, 83% of couples from a HelloPrenup survey agreed that they felt closer to their partner after the prenup process. Red flag, who?! So, why do people feel closer to each other after the prenup process? Here are the ways the prenup process can bring you together:
- Discussing future goals as a couple: This is really important to do when getting a prenup so that your prenup reflects your current and future lifestyle.
- Discussing individual life goals: Understanding your partner’s individual goals is a great way to get closer to them.
- Protecting each other: The prenup process is about making sure each partner is truly protected in any scenario.
- Requires open communication: To get the prenup done, you’ll need to communicate effectively as a team.
- Requires trust: There’s a level of trust required in a prenup, and putting this trust into one another is a huge green flag!
Green flag #2: Prenups are a marital planning tool
If you think prenups are red flags, listen up. Prenups can (and should) be considered a marital planning tool because they deal with so many aspects of what will happen during the marriage. For example, how will you manage finances during the marriage? Will you have joint accounts? Will you have separate accounts? How will you manage your living expenses? What about budgeting and spending? You can also discuss how certain property or assets will be managed during the marriage and who has ownership of such, For example, if you own a rental property, who will be responsible for the management of such property and all the associated costs.
Bottom line? Prenups do more than just talk about a divorce. They talk about your marriage, too. You can think of it as a marital planning tool, which, to us, is a huge green flag!
Green flag #3: Prenups protect both people
There’s a common misconception that prenups are all about protecting the wealthier person’s money. And that’s just not true! In fact, prenups being overly one-sided can actually get them thrown out in court. Many states have laws in place to protect leaving one person destitute due to the terms of a prenup. However, that doesn’t mean prenups need to be 50-50. It’s just simply best practice for both parties to receive at least something.
For example, let’s say there’s a couple (John and Sarah). John has a net worth of $100 million, and Sarah has a net worth of $10,000. In their prenup, John keeps most assets separate but provides Sarah with a lump sum payment of $1,000,000 million in the event of a divorce. Depending on the other details of this scenario and the state laws, a court could find that this agreement is fair since it provided Sarah with something, although it isn’t necessarily 50-50.
Green flag #4: Prenups require financial disclosure
Think of a prenup as a financial compatibility test. It requires both partners to lay all their cards on the table—income, assets, debts, the whole nine yards. This can be incredibly revealing. If there are any financial red flags, the prenup process will likely bring them to light. It’s not the prenup that’s the red flag; it’s the potential financial issues it might uncover.
For example, does your partner have an exorbitant amount of debt in which they never told you about? Red flag. Does your partner have a much higher income than they lead on? Red flag.
Green flag #5: Prenups override state default law
Did you know you already have a prenup? Yeah, it’s called your state default law. For example, in California, there are laws known as “community property laws,” which say pretty much everything accumulated during marriage is split 50-50. With a prenup in California, you can override that law and make your own rules. That’s a huge green flag, in our humble opinion! In most states, courts use a framework known as equitable distribution, which gives a divorce judge massive discretion to decide how to split your assets. A valid and enforceable prenup overrides that judge’s discretion and allows you to call the rules. Win-win!
The bottom line is prenups are not red flags
The bottom line is that a prenup is not a red flag, it’s actually a green flag, and we’ve provided five examples above. Not to mention, nearly 50% of millennials and Gen Z’s approve of getting a prenup. So at least ~71 million people believe prenups are awesome. From protecting each other in any scenario to overriding state laws, getting a prenup is not a red flag but rather a bright green flag.
Nicole Sheehey is the Head of Legal Content at HelloPrenup, and an Illinois licensed attorney. She has a wealth of knowledge and experience when it comes to prenuptial agreements. Nicole has Juris Doctor from John Marshall Law School. She has a deep understanding of the legal and financial implications of prenuptial agreements, and enjoys writing and collaborating with other attorneys on the nuances of the law. Nicole is passionate about helping couples locate the information they need when it comes to prenuptial agreements. You can reach Nicole here: Nicole@Helloprenup.com
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