Pennsylvania residents might remember reading a recent post highlighting the differences between millennial couples and those of previous generations. For example, millennials are getting married later and pulling down the divorce rate. It was also mentioned how they are trying to be prudent about their financial choices, opting to live with their significant other before tying the knot in an attempt to drive down living costs. Another way in which millennials are different from their older counterparts is their approach to bank accounts after marriage.
According to one survey, 28% of millennials are opting to keep their bank accounts separate from their spouses and forgoing the traditional joint bank accounts. This is more than double the amount of baby boomers and Gen X couples that keep their accounts separate. One of the reasons for this is because it has become easier to split money through applications that allow one to pay someone immediately.
Another reason this might be happening is because they have seen firsthand how complicated property division is during a divorce. However, experts say this is a misconception-while many believe separate accounts might make property division easier during a divorce, this is not the case. Regardless of the property division laws in the state, it can be argued that any assets acquired during a marriage by either spouse should be considered marital property and will be divided between the two parties. This could be because one partner supported the other by leaving a job, raising kids or pursuing an education.
One of the best ways to protect one’s assets is to create a prenuptial or post-nuptial agreement. This is true not only if someone brings a lot of money into the relationship-debt will also be split between the couple during a divorce. It might be possible to discuss more options with an experienced attorney.