Millennials have begun to marry at later ages than previous generations. As a result, the divorce rate has begun to decline in recent years. The belief is that millennials marry when older and wiser. They recognize the importance of marriage and do not rush into it. Additionally, millennials have increased the rate at which married couples acquire prenuptial agreements, according to The New York Times.
Although many people think crafting a prenup is unromantic right before the marriage, it is a vital document to have in case the marriage ends in divorce. However, if a couple fails to get a prenup, then they can always get a postnuptial agreement later. A lot of people assume there must be some differences, so it is good to clear up some myths about these documents.
They both cover the same basic elements
The purpose of both documents is to make the financial aspect of divorce simpler. Divorce is already a traumatic time for people, but knowing how things will shake out can help alleviate some of that discomfort. The reason many couples opt for a postnup is that they did not see a reason to get a prenup before marriage. Many couples marry without having significant assets, so it seems silly to divide anything at this time. Years later, the couple purchases a house, gets better jobs and inherits money from parents. At this point, the couple may realize the importance of a postnup.
How to divide marital assets
Prenups and postnups mostly differ in when they come into being. However, postnups may be trickier to write because the couple has more marital assets at this point. Prior to marriage, it may be easy to state one spouse will retain his or her car in the event of divorce because s/he purchased that car with his or her own money. Therefore, it is separate property, not marital property.