Prenuptial agreements are likely to find favor among high net worth clients, according to the latest monthly survey from Spectrem’s Millionaire Corner. Prenups may not be romantic, but more than two-thirds of high net worth investors surveyed in April would recommend a prenuptial agreement to a couple getting married today.
Most high net worth investors – who have investable assets of $5 million up to $25 million – acknowledge that prenups have one drawback. More than 54 percent acknowledge the contracts can introduce a “negative feeling toward marriage.” At the same time, high net worth investors see two key advantages to a prenup. More than 70 percent indicate a prenuptial agreement can protect assets accumulated prior to marriage, and more than 60 percent feel a prenup fosters a “frank and open discussion about money.”
Open communication is the most important ingredient to a financially healthy marriage, according to affluent investors participating in an earlier Millionaire Corner survey. Roughly three-fourths of Millionaires surveyed last May would advise couples to “outline financial goals, expectations and values” prior to getting married.
Millionaires view a lasting marriage as a key factor in building wealth, and tend to enjoy relatively high marriage rates. They also tend to worry about the financial well-being of their children and grandchildren, ranking concern higher than worries about their own financial situation.
Prenuptial agreements also find relatively high favor among higher-income investors, older investors and women. More than 62 percent of women – compared to 54 percent of men - would advise a couple to enter into a prenuptial agreement prior to getting married. Women are significantly more likely to identify the advantages of a prenup, while men appear more sensitive to their potential drawbacks. Close to two-in-five women indicate they don’t feel there are any disadvantages to a prenuptial agreement, compared to 27 percent of men.