Women’s financial independence in the United States has been a long and hard-fought battle, achieved only recently in our history. Astonishingly, women’s financial independence is a relatively new phenomenon. That’s right, the millennial generation’s mothers and grandmothers couldn’t even open bank accounts without their father’s or husband’s signature. But thanks to various social rights movements over the years, women have finally gained financial independence.
Yet, despite these advancements, traditional financial structures within marriage still often leave women at a disadvantage in a divorce. This is why prenuptial agreements are a critical feminist issue—they empower women to protect their assets, ensure financial transparency, and maintain autonomy. Prenups are not just legal contracts; they are essential tools for promoting gender equality within marriage.
Women couldn’t open a bank account without a man until the 1970s… Need we say more?
Let’s not forget that it wasn’t until the 1970s that women in the United States gained the right to open bank accounts and obtain credit independently of their husbands or male relatives (you heard that right…the 1970s). Before this, women’s financial autonomy was severely limited.
The turning point came with the passage of the Equal Credit Opportunity Act (ECOA) in 1974, which was a significant victory for women’s rights. The ECOA made it illegal for creditors to discriminate against applicants based on sex, marital status, race, religion, national origin, age, or receipt of public assistance. This landmark legislation was a direct response to the feminist movements of the 1960s and 1970s, which demanded equal rights and opportunities for women, including financial independence. Prior to the ECOA, women needed a male co-signer to open a bank account or apply for credit, effectively rendering them financially dependent on men.
Women still don’t have full financial independence today
Despite the amazing advancement’s in women’s rights (thanks to all the women who came before us and fought for it), many modern day women still do not have full financial independence. Between the gender pay/wealth gap and women staying home with the kids more often than the man, they tend to become slightly if not fully financially dependent on their spouse.
How prenups empower women
Don’t be fooled by the false narrative that prenups are only to protect against female gold diggers. It’s not true.
For women, a prenup is a tool for financial independence and autonomy, whether they have an illustrious career or choose to stay home and raise a family. Prenups promote fairness by ensuring that both partners are aware of and agree to the financial terms of their marriage, aligning with feminist ideals of equality and mutual respect.
In many cases, women may take breaks from their careers to raise children, leading to economic disparities in the marriage. A prenup can address these gaps by outlining spousal support or other compensation to the woman, ensuring she does not leave the marriage with major financial hardship.
Prenups can create equality in marriages
Prenuptial agreements are often misunderstood as unromantic or distrustful. However, from a feminist perspective, they are practical tools that empower women to maintain their autonomy and financial independence. By embracing prenuptial agreements, we acknowledge the realities of modern relationships and the importance of financial planning. We recognize that true equality in marriage involves transparent discussions about finances and mutual agreements that protect both partners.
What is alimony, and why it matters for women
Alimony was originally created to provide financial support to women after a separation from their husbands because only men at this time had the right to work outside of the home. Women, quite literally, could not survive without a man, as they could not work. So, if a couple were to divorce, a woman would need financial support from him. And that was how alimony was born.
As women gained more rights and entered the workforce, the evolution of alimony saw significant changes in the 20th century, mainly driven by the changing economic roles of women. For example, the Tax Reform Act of 1984 required that alimony payments be included as taxable income to the recipient and deductible by the payer, thereby incentivizing a more fair post-divorce outcome for both parties (this was reversed under Trump’s tax reform in 2019).
In recent years, several states have enacted significant alimony reforms to reflect contemporary societal norms (i.e., women working). For instance, Massachusetts‘ Alimony Reform Act of 2011 established clear guidelines for the duration and amount of alimony based on the length of the marriage, aiming to eliminate lifetime alimony awards.
The long and the short of it is that alimony has “evened out” and is generally not a windfall for the woman, despite common belief. Maybe back in the old English days when alimony was first created, but not anymore. Many states do not allow forever-alimony and have passed many laws to ensure fair outcomes for both genders.
Why alimony alone isn’t enough
As you can see, alimony is not a windfall for women. They aren’t “hitting the jackpot” with alimony. For women who leave the workforce to raise families and then face divorce, alimony is not a sufficient monetary substitute for their lost income and lost earning potential. While alimony can provide temporary financial support, it cannot fully compensate for the long-term economic impact of stepping away from a career.
This is where a prenuptial agreement with financial equality provisions can be so powerful. As women continue to achieve financial independence through education, employment, and equal rights, it is crucial to recognize that alimony, although essential, does not fully address the financial challenges that many women face after divorce.
The bottom line
Prenups. Are. A. Feminist. Issue. (Louder for the people in the back!) Prenuptial agreements can ensure fairness by having both partners agree on the financial terms of their marriage. They address economic disparities when women take career breaks to raise children, protecting women from significant financial hardship in the event of a divorce. By including provisions for alimony or other compensation, prenups help women maintain their financial independence, even if the marriage ends.
Julia Rodgers is HelloPrenup’s CEO and Co-Founder. She is a Massachusetts family law attorney and true believer in the value of prenuptial agreements. HelloPrenup was created with the goal of automating the prenup process, making it more collaborative, time efficient and cost effective. Julia believes that a healthy marriage is one in which couples can openly communicate about finances and life goals. You can read more about us here Questions? Reach out to Julia directly at Hello@Helloprenup.com.
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