According to a recent Harris Poll, nearly 40% of married or engaged people between the ages of 18 and 34 have signed prenuptial agreements. According to experts, one likely reason is the historic levels of debt, such as student loans, which many younger Americans have. In “community property” states, where assets are typically split fifty-fifty upon divorce, this community property principle extends to debt. This means creditors can seize the community property of both spouses, or even garnish their wages, to collect on any existing debts. To put this simply, you could be responsible for your ex-spouse’s student loan and credit card debt and likewise, they could be responsible for yours. Prenups, especially in the “community property” states, have become a way for some couples to shield each other from the American debt-collection system. To learn more, click on this link.
