According to a recent survey conducted by Spectrem’s Millionaire Corner, the phrase “older and wiser” may apply to which investors are more likely to make use of prenuptial agreements. According to the survey, close to 60 percent of investors ages 61 and up would recommend the use of a prenup, whereas under half of the investors age 40 and below would recommend them.
Older investors who said they would recommend prenups identified three primary reasons why they would do so. Two-thirds of them said that prenups protect assets accumulated prior to a marriage, and over one half said that a prenup can protect children from a previous marriage and encourage a couple to speak frankly about finances before the marriage.
By contrast, the majority of younger investors were unaware of the advantages prenups provide, though most knew that prenups can protect existing assets. Younger investors, unlike their older counterparts, are more likely to cite potential drawbacks to prenuptial agreements, such as that they introduce negative feelings about marriage, put the emphasis on money rather than love, make it easier to get divorced or prevent a marriage from ever occurring. More than one-third of older investors didn’t feel, in the survey, that there were any significant disadvantages to prenuptial agreements.
The survey also found that women are more likely to incline favorably toward the idea of prenups than men.
Prenuptial agreements can benefit many couples, not just those with considerable wealth. Couples that are curious about the possibility of forming such an agreement should work closely with their respective attorneys to ensure their interests are protected.
Source: Millionaire Corner, “Older Investors Are Bigger Advocates of Prenuptial Contracts,” Adriana Reyneri, May 15, 2013.