Plus: Introducing the 'New American Playbook'

Prenups cover more than just financial assets.

Prenuptial agreements, better known as prenups, have historically gotten a bad rap.

These legal contracts - signed before a couple gets married - outline how the pair will handle assets, debts and spousal support if they get divorced, or if one partner dies. They can also be part of your estate planning, such as in the event that one of you becomes incapacitated. Some couples may avoid them because it feels like they're planning for the end before their marriage even begins. Others may be put off by the stereotype of a wealthy, older man who wants his bride to sign away rights to his assets.

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But prenups are practical financial documents that many couples today - even those without millions in assets - are realizing they need. More than half (53%) of engaged or married millennials and Gen Z-ers said they had signed a prenup, according to a 2026 Harris Poll. That's an increase of 11 percentage points since 2022.

I'm getting married in 2028 - and I'm getting a prenup. I want peace of mind knowing that if anything unexpected happens to either one of us, the other will be OK. If you're also getting married, then here's why you should consider a prenup, too.

Smart money move of the week: Talk prenups with your partner

Getting married is one of the biggest financial decisions you'll ever make, notes Sarah Luetto, a partner at the law firm BlankRome who specializes in matrimonial and family law. "We like to think of prenups as being more akin to a partnership agreement," she said. You wouldn't go into business with someone without thinking about the economic terms of this arrangement, deciding the division of certain expenses and labor, and how you're going to share profits, she explained. A strong prenup creates a similar roadmap with your life partner.

And, even if you're still renting, and you don't know whether you'll have kids, or you're not banking on an inheritance, a prenup may still be worth considering. "The old perception that prenups are only for wealthy people is so outdated," says Milos Ringbauer, a certified public accountant and founder of the accounting firm MiklosCPA Inc.

"The old perception that prenups are only for wealthy people is so outdated."Milos Ringbauer, a certified public accountant

That's because there are several assets and provisions for all stages of your wealth and career journey that can be covered by a prenuptial agreement.

Investments: You may not be rich yet, but your investments, company stock options, and/or a workplace 401(k) are all building your wealth over time. So keep in mind that your financial situation - as an individual and as a couple - could look very different years from now. "I have a lot of younger clients who have huge stock-option portfolios," says Ringbauer, which is leading to prenup discussions about "not only what I have today but how it gets allocated for the future."

Parenting and caregiving: If one of you has to step back from their career to be the primary caregiver for your kids or caring for an aging parent, then a prenup can account for the financial hit a stay-at-home parent or caregiver may take. "When you step out of the workforce, you're not getting that 3% to 5% raise, and you're not able to climb the corporate ladder," says MAI Capital Management senior wealth adviser Megan Miller. "You are entirely limiting your income potential for your lifetime earnings, and that affects Social Security and retirement savings." A prenup can make sure that if one of you sacrifices your earning potential for the family, you're not left starting from zero if the marriage ends.

Debt: If either of you is carrying student-loan debt, or credit-card or medical debt, you can decide whether you're sharing that burden. "The prenup is super important because it gives the protection for one party to say, 'We agree this debt is mine, and I want to take care of it, and you are not responsible,' " Ringbauer says. While it depends on state law and the type of debt, a prenup can write in some protections so that one person is responsible for debt taken on before marriage, and a partner isn't on the hook for it.

Pets: Luetto is seeing more 30-something couples including pets in their prenups. Just keep in mind that the treatment and enforcement of these agreements varies by state. She says clients use prenups to clarify if they had the pet before marriage, whose pet it is, and what the expectations are if the couple splits or someone dies. This can include custody and visitation, as well as sharing expenses like vet costs, food and treats.

Embryos: "A legal issue that is coming up more and more, especially with younger people who work for tech companies with fertility benefits, is what to do with shared embryos," Luetto says. "The battle over embryos is becoming a big problem in divorces now." Not to mention an emotionally and financially fraught one. So unmarried couples with shared embryos may want to modify the terms of the contract signed with the fertility clinic as part of a prenup process.

Pro tip: Don't set it and forget it. Prenups generally don't expire automatically, although couples can include an expiration date. It can be wise to revisit an agreement after major life changes, such as moving to another state (which may have different rules about prenups and marriage property), switching jobs, having children or buying a home. While it may sound daunting to go over all of this again years later, Ringbauer says it's a responsible way for the couple to "make sure we are on the right footing together."

How much a prenup costs

Couples should consider hiring separate attorneys during the prenup process so each party has independent legal representation. Whether separate counsel is legally required depends on the state and the terms of the agreement.

It's true that hiring a lawyer can get expensive. Miller says she's seen prenups range from $4,000 to $20,000 per couple depending on how complicated the financial situation is. For instance, if one party comes from multigenerational wealth, or both do, then trust-and-estate complexities will likely require more billable hours to work out.

There are online prenup tools that can lower the cost. They usually cost hundreds of dollars, with additional fees for attorney review, notarization or other services. But the lawyers and accountants we spoke with were hesitant to recommend them, because - depending on the laws of your state - if they aren't worded or notarized correctly, they might not hold up in court. Ringbauer also notes that many financial situations are complicated, and it can be easy to forget to list all of the assets you want covered. "It's so crucial that it is done right," he says. "This is one of those areas you want to spend the energy and the time and the financials to make sure everything is accounted for properly."

Reader opinions

Last week, we asked for your thoughts on prenups. Reader Aaron Rupert wrote that he regrets not having one in his previous marriage of 17 years. "After a marriage for this period of time, differentiating between marital and non-marital assets became excessively challenging," when they got divorced, he says.

"My ex-wife often told me how she never cared about money, prior to and well into our marriage," he adds. But once the marriage ended, they still got drawn into a legal battle that "took an enormous toll on me emotionally and psychologically," he says. So, if he ever gets married again, he's getting a prenup. "Now that retirement is closer than the start of my career, I need to protect myself from this ever happening again," he writes. "A prenup could provide me with the insurance I'm looking for."

Introducing the New American Playbook

America's financial playbook may be broken, but Generation Z is taking matters into its own hands.

My colleague Venessa Wong wrote about how young people are adapting to an economy that is very different from the one their parents came of age in.

I'm also surveying Gen Z-ers to better understand their investing behaviors for a New American Playbook story publishing next week. If you're an investor under age 30 - anything from contributing to a workplace 401(k) to active day trading counts here - please take our survey. It's anonymous, unless you choose to share your name at the end.

Key money reads

- More younger Americans are choosing to rent longer. Here's how they're building wealth instead of buying a home.

- Meanwhile, these first-time homeowners bought their houses in their early 20s. They share how they did it here.

- Need some inspiration to bump up your retirement contributions? How about joining the new record number of 401(k) millionaires?

Reader tips

Send us your favorite way to save or grow your money, and we'll share it with our readers. Send it to dontshortyourself@marketwatch.com.

About Genna

I'm Genna Contino, an award-winning journalist on MarketWatch's personal finance team. I'm 27 years old, originally from South Carolina, and currently splitting the rent on an overpriced apartment in New York City with my fiancé. When I'm not writing about my hack for saving hundreds of dollars on airfare, or the four must-have money conversations before moving in with your partner, you can find me reading a celebrity memoir, overanalyzing reality TV, junk journaling, borrowing DVDs from the library or getting thoroughly humbled in an adult ballet class after a 10-year hiatus.

-Genna Contino