According to recent reports, Millennials are spurring a decline in divorce rates. Some of this is attributable to their willingness to hold off on marriage until they are financially secure. To do this, delay tying the knot until they have secured a decent job or found their footing in a career of their choosing. These individuals tend to be more cautious in their money management, too, particularly as it pertains bank accounts.
In fact, many Millennial couples are foregoing joint checking accounts in favor of separate accounts. According to recent reporting, 28% of Millennials are choosing this route. Many of them believe that this tactic will not only prevent fights over money, which is a major contributor to divorce, but also protect their financial interests in the event of divorce.
This may not be the case, though. Oftentimes even separate bank accounts are considered marital assets and therefore subject to property division. The court may even require an individual to utilize his or her separate assets to comply with a divorce judgment or settlement. Of course, having a separate account can prove helpful when emergency funds are needed during the divorce process.
One way to avoid this and other similar divorce issues is to consider entering into a prenuptial agreement. This agreement can clearly delineate the division of property in the event of divorce and spell out each party’s financial obligations during the course of the marriage. These matters shouldn’t be taken lightly, either. Especially considering that the property division process can set an individual’s financial stage for years to come. Therefore, those who want to learn more about how prenuptial agreements can help them, or how to handle challenging property division issues, should consider reaching out to a competent divorce attorney.