Top 5 Millennial Prenup Agreement Tips are critical for protecting wealthy millennials who wisely view marriage as both a romantic and financial partnership. In today’s blog, the father-son team of Lorne MacLean, QC and Fraser MacLean will guide you on why you should seriously consider a prenup, also called prenuptial agreements, and how to properly negotiate one.
Fraser MacLean notes he is receiving more inquiries for preparation of prenuptial agreements by millennials now than ever before. Lorne MacLean, QC knows raising the issue of a prenuptial agreement with a loved one may seem daunting. Successful marriages are based on trust and honest communication. Honestly, and openly discussing mutual goals for how your marriage should work and what happens if it doesn’t is really the basis for an effective prenuptial agreement.
A Globe and Mail article confirms Fraser’s experience of an uptick in demands for prenups is the “new normal” for millennials. Fraser MacLean can be reached directly at fmaclean@macleanlaw.ca or call him direct at our downtown office at Tel 604 697 2820.
So what exactly is a prenup agreement? Prenuptial agreements, commonly known as prenups or marriage agreements are legal contracts that outline how engaged couples will handle personal and financial responsibilities during the relationship and how to divide their family property and deal with spousal support issues if they divorce. In BC, the courts encourage out of court settlements and judges respect fairly negotiated prenups.
Ok, so why do millennials want to enter into prenups? According to an AAML survey (American Academy of Matrimonial Lawyers), 51% of divorce lawyers are seeing prenuptial agreements on the rise for the millennial generation, with the most cited issues:
- 78% protection of excluded (separate) property
- 74% spousal support protection
- 68% division of property
- 64% protection of the increase in the value of excluded (separate) property
- 42% inheritance rights
Hire A Top Family Lawyer
Our new BC Family Law Act says only agreements that are significantly unfair will be interfered with by the Court. In BC you must negotiate a prenup fairly, not take advantage of your future spouse and make full financial disclosure. The longer the relationship, the more that events unfold differently than anticipated and the less the parties abide by the agreement the less enforceable it can become. Hiring a top high net worth family lawyer who properly anticipates the future, with you, is critical to making sure the prenup is procedurally and substantively fair and enforceable. Homemade agreements are not worth the paper they are written on.
Our Vancouver and Calgary high net worth family lawyers recommend prenups for people of all ages as a sound part of any new relationship that they want to stand the test of time. Our Top 5 Millennial Prenup Agreement Tips Lawyers can be reached toll-free Call 1 877 602 9900
Top 5 Millennial Prenup Agreement Tips # 1
Be A Realist On The Failure Rate For Marriages and Marriage-Like Relationships And Use A Prenup To Save Money And Stress
Our top-rated Vancouver prenup lawyers and Calgary marriage agreement lawyers craft bespoke written agreements to protect both spouses. It just makes good sense to decide the mutually agreed core principles of what happens during your marriage or marriage-like relationship and at its end if things do not work out.
Roughly half of the committed relationships fail. Deciding what happens on a breakup, when people are calm at the start of the relationship is less costly emotionally and financially than figuring it out at the often volatile time of the breakup.
Creating a separate property regime that may include an annual payment cap for each year of marriage is common as is a waiver of claims for spousal support but there are limitless options that our creative prenup lawyers can discuss with you.
Top 5 Millennial Prenup Agreement Tips # 2
Start Negotiating Early!
Lorne MacLean, QC recommends you start negotiating a fair and comprehensive prenuptial, cohabitation or marriage agreement several months before the wedding day. By starting early, you’ll allow time for thorough and comprehensive discussions. Last minute stress during the days leading up to the wedding is to be avoided at all costs. It is important you prevent making your fiancé feel rushed or pressured into something he or she doesn’t understand or agree with. We have observed first-hand weddings being cancelled the day before the wedding date due to procrastination.
Top 5 Millennial Prenup Agreement Tips # 3
Frame The Discussion as A Win-Win
Fraser MacLean and Lorne MacLean, QC know that having discussions about signing a prenup can be difficult. Here is a template to help you successfully broach the topic of preparing a prenuptial agreement:
- Write out 5-10 reasons why you want your future spouse to sign the prenup, marriage or cohabitation agreement. Then, write out potential responses from your spouse and what your answers to these responses will be. This planning will help have a calm and fruitful initial discussion.
- Framing the discussion, not as a list of demands but rather as a template for a successful relationship and not something to be feared will help counter any negative response. Having a mature discussion on what the mutual goals of how the relationship will work and what will happen if the relationship fails are topics mature adults need to openly consider and not sweep under the rug.
- Don’t cop out and say your parents made you do it. You are a mature adult who can make important decisions for yourself.
- Frame the basis of the prenuptial agreement as a positive document that lets parties agree on how they will share responsibilities during the marriage. How child care will be shared fairly as well as how family finances will be handled is just as important as discussions of what will happen if your relationship fails.
- Discuss how property and debts brought into the marriage and how gifts, inheritances and windfalls will be dealt with and how gains will or will not be shared. Decide if your property is to be kept separate except for joint property identified in writing, how will each party be independent for support purposes and what happens if children are born of the relationship.
- Discuss what happens to finances and family property if one spouse dies. A marriage only ends on divorce or death- so it makes sense have a plan for both options in writing.
Top 5 Millennial Prenup Agreement Tips # 4
Prenups Are On The Rise Because of Millennials Are Marrying Later And Having More Family Property And Income
Many millennials have seen their parents go through a painful divorce. Millennials are getting married far later in life and have higher incomes and assets. Women are now more than ever successful entrepreneurs and professionals such that both future spouses have income and asset protection incentives when negotiating a prenup. Finally, coupled with this new reality, is the imminent wealth transfer of millions from their baby boomer parents. Often one or both spouses may be working for a lucrative family business that they want to protect from family property division. Millennials smartly see prenups as a way to avoid a perfect legal storm on relationship dissolution.
Top 5 Millennial Prenup Agreement Tips # 5
Everyone Who Expects To Be A Winner in Life Needs A Prenup!
You will benefit from entering a prenup agreement if you or your partner:
- want to set the ground rules for how finances and responsibilities will be dealt with during the relationship;
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own property or a professional practice or business;
- expect to receive a substantial inheritance or gift;
- have children from a previous relationship, or have been married before;
- plan to take time off to raise children which should be taken into account and compensated for;
- have significant debt;
- have pensions or RRSP accounts;
- have investments or will receive stock options during your marriage;
- expect to obtain large gains on their property whether acquired before or after marriage; and
- want to fairly provide for your spouse on death.
We have 6 locations across BC and Calgary, Alberta.
Top 5 Millennial Prenup Agreement Tips Takeaway – Don’t Procrastinate If You Want To Plan For A Successful Relationship Call 1 877 602 9900.
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