PSYN Staff, LegalZoom Team
Oct 3, 2024
Over 40% of Gen Z and Millennial couples reported signing a prenup, compared to only 15% of the overall population.
With the weekends now full of weddings, this is a good time to bust the myth of who gets a prenup and why. As Couples look toward the Fall and Spring wedding seasons, recent data shows a significant increase in prenup adoption among younger generations, with over 40 percent of engaged or previously married Gen Z and Millennial couples opting for these agreements.
Prenuptial agreements are intended to be a financial planning tool that can serve both parties, during and after the marriage. They outline financial expectations, can protect one or both parties from individual debts, and help divide property fairly in the event of death. In the unfortunate case of a divorce, a prenup can include defined spousal support. These are just a few protections that can be included in a prenup developed leading up to a couple’s wedding, and there continues to be a steady increase in couples opting for prenups.
"We're seeing a shift in how younger generations approach marriage and finances," said Nicole Miller, Chief Legal Officer of LegalZoom and Executive Manager of LegalZoom’s law firm, LZ Legal Services. "Prenups are no longer just for the wealthy. They're becoming a smart financial planning tool for couples of all backgrounds."
Key findings from recent research looking at external trends:
● Over 40% of Gen Z and Millennial couples reported signing a prenup, compared to only 15% of the overall population.
● There has been a general increase in U.S. adults being open to having prenuptial agreements with a Harris Poll showing a 19% increase in just one year of adults who supported the use of prenups.
● Infidelity is one of the leading causes of divorce in American couples, with some surveys indicating that more than 55% of separations are at least partially related to cheating. It's no surprise that infidelity clauses continue to be a popular part of prenuptial agreements.
LegalZoom provides prenuptial agreement services through its law firm, LZ Legal Services, available to 50 percent of the American population, which resides in California, Arizona, Texas, Florida, Pennsylvania, New York, North Carolina, South Carolina, Virginia, and Tennessee. As customer demand has increased for this legal service, LZ Legal Services will soon be expanding prenuptial agreement services to Colorado and Ohio, as well as other states by the end of the year.
Based on LegalZoom Legal Services (LZLS) customer insights:
● Men initiate the majority of LZLS prenup orders (65% of total prenups), but the percentage of women initiating is growing. Public data shows that with the unfortunate pay gap of women making 18% less than their male coworkers, a prenup helps take into account that the husband may have a higher take-home pay than his ex-wife while other things remain equal.
● California leads the pack by a large margin, with 51% of LZ Legal Services prenup customers hailing from the Golden State. This is followed by Florida at 13%, Texas at 11%, and New York at 7%.
● The average time from the order of a prenup to the wedding date is about 69 days. The recommended timeline is two months to start the planning process, based on LZLS’s customer experiences; however, it is possible to initiate a prenup with sooner or flexible wedding dates.
● The top three items couples included in their marriage contracts are protection of separate property, alimony/spousal maintenance, and division of property. While prenuptial agreements cannot predetermine child support or parenting rights, they can include what happens to family pets in the event of a divorce.
The average cost of a divorce reaches approximately $11,300, compared to the typical cost of a prenup with offline attorneys at around $2,500.
"The benefit of a prenuptial agreement is the potential to save time and costs associated with divorce proceedings, which further reduces the amount of stress on the couple,” said Jonathan Fang, one of the experienced prenup attorneys who provides services as a co-counsel for LZ Legal Services. “By resolving what are typically the more contested issues in a divorce first in a prenuptial agreement, then in the unfortunate event of a divorce, couples can focus on healing themselves rather than spending all their energy and resources on fighting over legal issues."