Prenuptial agreements, once seen as primarily for the wealthy or celebrities, are gaining traction among younger couples, including millennials and Gen Z. This shift is partly due to the increasing recognition of prenups by English courts since the 2010 Radmacher vs Granatino case, although they are not automatically legally binding. Among Gen Z, a quarter have already signed a prenup, and 30% would consider one, according to an Ally Bank survey. Men in these generations (37%) are more likely than women (27%) to see prenups as important.
Several factors contribute to this trend. The ongoing "Great Wealth Transfer" and looming UK inheritance tax increases make prenups seem more necessary for protecting inherited wealth. Younger generations also prioritize financial transparency early in relationships. A 2023 Northwestern Mutual study found that a quarter of Gen Zers believe serious money conversations should happen after getting to know someone but before getting serious, and 38% believe it should happen before marriage. The growing acceptance of prenups is also fueled by a more open attitude towards divorce, with the "taboo of divorces" fading.
Demand for prenups has seen a significant increase. One law firm noted inquiries nearly doubled in a year and were almost 70% higher than their previous peak in 2021. This growth is attributed to a "ripple effect" as more people become familiar with the concept. While the cost of a prenup can be a few thousand pounds (with some digital services offering fixed fees of $1,500 total, or $750 per person), this is significantly less than the potential six-figure legal costs associated with a contested divorce. In the US, over half of engaged or married Americans under 45 report having a prenup, and overall, about one in five married couples have one.
This rise in prenups among younger demographics is reshaping the stereotype of who gets one. No longer just for the super-rich, prenups are now being adopted by "start-up professionals," entrepreneurs, and influencers. Parents are often a driving force behind these agreements, particularly when children are managing significant inherited assets, aiming to safeguard those inheritances in case of divorce.
