When it comes to protecting assets from being ravaged during a divorce, it appears that Millennials in Florida and across the nation are taking a far more practical approach than previous generations. A recent survey by the American Academy of Matrimonial Lawyers suggests that younger people are pursuing prenuptial agreements at a rate far ahead of their parents or grandparents. The survey included the input of more than 1,600 family law attorneys.
In the past, prenups were primarily used to protect generational wealth. Today, however, prenuptial agreements have become far more flexible financial planning tools. For Millennials, that often means safeguarding property that is less tangible than investments or real estate.
Intellectual property is a primary area of focus for many Millennials who include prenups as part of their wedding preparations. In fact, many modern prenups center on issues of intellectual property. Examples include songs, software, apps, films and even ideas for as yet undeveloped technologies. That shift is an interesting change, as it addresses work that has yet to be created and, therefore, cannot be assigned a value. The more traditional approach was to specifically address wealth that was being brought into a marriage or matters of inheritance.
It appears that younger people are eager to preserve their right to the fruits of their creative labors. If that trend continues, many couples will gain a great many protections through the increased use of prenuptial agreements. Such proactive decisions can make worlds of difference for those Florida couples that will eventually experience divorce.
Source: Bloomberg, "Prenups for Ideas Are All the Rage With Millennials", Polly Mosendz, Nov. 1, 2016