15-Apr-2019 • Personal Finance

Despite 74% of Australians agreeing prenuptial agreements are fair and have merit, only 18% of couples have one.

That’s the key finding from a new survey of 1,000 couples by ME Bank, conducted following the latest string of high profile divorces - such as Jeff and MacKenzie Bezos - resulting in significant dollar related costs to the marriage breakdowns.

However, some are more open to prenups than others. ME’s survey shows a massive one third (32%) of couples aged 18-24 currently have a prenup – the highest of all age groups.

ME Money Expert, John Powell, said, “It’s a generational thing. Younger couples are ditching traditional ideas about prenups and opting to protect themselves financially.”

In comparison, Powell said “The research suggests the sentiment “what’s mine is yours” still holds true for older generation Australians.

90% of Australians aged 40-54 years of age don’t have a prenup, reflecting a significant difference in generational values and priorities.

Interestingly, same sex couples are significantly more likely to have a prenup over couples in a heterosexual relationship (41% vs 14%).

In relation to why so few couples are getting a prenup, ME’s research revealed 47% of Australian couples think prenuptial agreements are inappropriate in a relationship based on love.

“These findings indicate strong beliefs about the underlying meaning of a prenup, and the emotional aspect may explain why so few couples have one in spite of most thinking they’re fair and make sense.

“Another reason for the lack of prenups is that many relationships start before either party has established any type of wealth.

“If you come to a relationship with a significant disparity in assets, there’s nothing wrong with setting up an insurance policy to protect your financial position.

“A prenup is not anti-relationship – it’s only relevant when the relationship is over.”
 

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Editor notes: ME’s Love and Money survey was completed by 1,000 Australians in a romantic relationship, using survey provider PureProfile.