Prenups Are on the Rise: Here’s How to Talk About Them With Clients

After Taylor Swift’s recent marriage to Kansas City Chiefs player Travis Kelce, it feels like all anyone can talk about (besides whether staging a wedding at Madison Square Garden is tacky) is the couple’s prenup. 

And for better or worse, recent studies confirm that prenups are on the rise well outside of the celebrity demographic. A survey conducted by Harris Poll for Bloomberg News this year found that 53% of engaged or married Americans under age 45 said they’d signed a prenup, up from 34% of millennials and 41% of Gen Zers just four years ago. As that number grows, helping clients think through their finances before marriage can be a way for advisors to stand out and set clients up for success.

“The reason why people shy away from talking about it is the perceived negativity, whereas the conversation can certainly be a positive one,” said Baylee Bryant, a CFP for Merit Financial Advisors. “Clarity never hurts, and so go into the conversation just being the information provider. You’re not betting on the worst outcome. You’re actually just giving the client a stronger foundation that hopefully can plant a seed that will last their entire marriage.”

Get It in Writing

Beyond the obvious benefits of protecting individual assets like real estate or family wealth, there are several other points that couples might address in a prenup. “If one partner has significantly more assets to protect before marriage, I’m a big fan of having the other partner consider including something that lets them continue to build some separate assets during the marriage,” said Kaylin Dillon, a CFP who specializes in prenups. That way, “there’s at least a pathway to both having equal safety nets, or even if they’re not equal safety nets, just both having your own safety nets.” Bryant suggested several other options:  

• If one partner has significant debt, like student loans, the agreement can classify it as separate property. 
• Especially in tech, compensation packages can include stock options or ownership stakes in companies. These arrangements can lay out how those are divided (or not).
• If one partner decides to stop working to take care of a family, prenups can account for that lost earning potential. 

Step In Without Overstepping. Some advisors may think that prenups are the purview of a lawyer, and that their responsibility is just to suggest that their clients get one, said Dillon. “We have conversations all the time about clients’ estate plans. It’s not that different,” she said. “You don’t have to be an expert, and you certainly don’t need to and shouldn’t step into the role of an attorney. But there’s a lot of value you can add just helping clients think through what they should consider in their prenup.”