An article in Luxury London magazine explains how Gen Z is embracing early pre-nuptial agreements to protect their future wealth before their fortunes have even been made. Divorce and Family partner Voirrey Ward is quoted extensively in the article.

The article, titled ‘The rise of the pre-rich prenup’, says that pre-nuptial agreements have shed their stigma. Once seen as the reserve of celebrities and the ultra-rich, they have now emerged as a financial tool for ‘pre-rich’ young professionals, creatives and entrepreneurs.

Voirrey agrees: “Prenups are no longer a taboo topic and are no longer just for the wealthy,” she says. “Younger couples seem more willing to have tough financial conversations to avoid drawn-out disputes later down the line and appear to recognise the concepts of fairness and transparency in a marriage.”

She thinks this is in part because couples today are better educated, marrying later and more willing to take proactive steps to protect their financial future even before they have generated significant wealth.

Voirrey quotes statistics that reinforce this. In a survey carried out by Stewarts, 76 per cent of couples aged between 25 and 34 had a pre-nup in place, compared to 11 per cent of couples over 55 in the same wealth bracket.

Future wealth

The article states that modern pre-nuptial agreements have become more forward-looking than traditional agreements, and will account for future equity events, intellectual property portfolios and business exits that may be years away.

Voirrey explains that pre-nups can be structured to safeguard future wealth by clearly defining how particular assets or types of assets, including those acquired during the marriage, will be dealt with on divorce. She emphasises that although these types of agreements might have once been seen as unromantic and ‘off-limits’, “pre- and post-nuptial agreements are now more widely accepted as a smart move to safeguard future assets”.

Fairness

To be upheld by the court, a pre-up must be deemed fair and freely entered into, with both parties understanding its implications. Voirrey believes that this “motivates parties to make reasonable provisions for one another while still safeguarding their individual assets – an approach that supports trust and mutual respect in the relationship”.

The article concludes by saying that pre-nuptial agreements might be the most important contract you ever sign, as they offer a rare commodity: “clarity”.

You can read the full article here and find out more about pre- and post-nuptial agreements here.

Subscribe – In order to receive our news straight to your inbox, subscribe here. Our newsletters are sent no more than once a month.