Not every tech-savvy entrepreneur makes millions, but many millennials are finding themselves in the right place, at the right time, with flush bank accounts. If that’s the case, says CT Post, in “Millennial Millionaires and Their Prenups-What They Need to Be Thinking About,”they need to think very seriously about having a prenup. Not very romantic? No, but with a lot to lose, you want to protect both spouses.
The use of prenups has increased five times in the past two decades for millennials, according to the American Academy of Matrimonial Lawyers (which defines millennials as those ages 18 to 34). Many young married people active in the startup world think that premarital agreements are a wise move.
A prenup lets entrepreneurs protect what they have worked so hard for. Up-and-coming millennials and entrepreneurs are waiting longer to get married. As a result, they typically have more assets, accumulated wealth from a 401(k) and stock options and possibly real-estate ventures. They could potentially lose a lot, if a prenup isn’t put into place. They also need to protect their intellectual property, and the very idea of a business has to be protected.
A marriage is a two-person team, so a couple should carve out some partnership in their marriage. This is commonly the family home or the greater salary, but investment properties are best left undivided. If you think a prenup is good for you and your fiancé, remember these guidelines:
Work with a business attorney. Your legal counsel must be business savvy and understand how to best plan for future contingencies. Each party should also have their own separate attorney for a prenup to be valid.
Plan ahead with a prenup. Don’t begin arranging for a prenup a month before your wedding. If you have significant assets, it will take some time to draft.
Look at the details. Determine if your partner has offshore accounts. It also matters where you will reside. Some techies, originally from China or India, have international attorneys that increases the time required to draft an agreement.
Every prenups is unique. There’s no one size fits all. There are many variables and they’re unique to each relationship.
Ultimately, a prenup is a good tool in your business succession planning, which is part of your estate planning. As you consider the use of a prenup, remember to think about the future of your estate and how you will want to plan for it in the event of your death.
To learn more about business succession planning or other estate planning topics, explore our website today and schedule your consultation!
Reference: CT Post (November 5, 2018) “Millennial Millionaires and Their Prenups — What They Need to Be Thinking About”