4 in 10 young adults now sign prenups with surprising clauses

A New Generation Embraces Prenups

A 2023 Harris Poll shows that 41% of Gen Z and 47% of millennials who are engaged or married have signed a prenuptial agreement, a sharp increase reflecting a modern approach to marital finances that now includes everything from crypto to frozen embryos.

"The prenup is that extra belt and suspenders," said Sherri Sharma, a matrimonial lawyer at Mosberg Sharma Stambleck Gross, noting that even with sophisticated estate plans like trusts, a prenup provides an additional layer of financial safety and clarity for couples.

The trend moves beyond simple asset protection, with couples adding specific clauses for digital assets like cryptocurrency, the disposition of frozen embryos, and even custody arrangements for pets in "petnups." The agreements also increasingly include non-disclosure clauses to prevent details from being shared on social media. This reflects a broader Gen Z trend of "shrekking," where partners prioritize emotional and financial safety over traditional romance.

With over $100 trillion in wealth expected to transfer from older generations by 2048, according to Cerulli Associates, younger couples are taking a more pragmatic view of marriage. They are often entering unions later in life with more individual assets to protect and a greater desire to establish clear financial boundaries from the outset.

Beyond Cash: Crypto and Embryos

The modern prenup is evolving to address assets that didn't exist a generation ago. Clauses specifying that "any cryptocurrency owned prior to, or acquired during the marriage... shall not be deemed marital property" are becoming common. Similarly, with more than one million embryos in storage in the U.S., couples are using prenups to decide their future, often stipulating that use requires mutual written consent or that they be discarded after a set period if no agreement can be reached.

The 'Petnup' and Social Media Clauses

The emotional and financial investment in pets has also entered the legal domain of divorce. According to a MetLife survey, nearly half of pet owners would sign a "pet prenup." These clauses lay out custody-sharing and cost-sharing for veterinary bills and food. At the same time, confidentiality clauses are being added to prevent the details of a couple's finances or the prenup itself from being disseminated on social media, ensuring privacy survives even if the marriage does not. Divorce lawyers emphasize that for these agreements to hold up, they must remain equitable, providing for the less wealthy spouse to ensure they are not left financially dependent and vulnerable.

This article is for informational purposes only and does not constitute investment advice.