In a New York Times article, law professor Orly Lobel observed that millennials are signing prenuptial agreements in greater numbers than ever before, and not just to protect traditional assets like real estate or savings. In fact, many are using prenups to safeguard something less tangible but increasingly valuable, intellectual property. Furthermore, a 2023 Money article found that a large majority of modern prenups increasingly cover non-traditional assets, not only intellectual property, but also digital assets and even social media accounts. According to the article, younger couples, especially millennials, are more likely to include clauses that protect entrepreneurial ventures and creative work.
A Shift in Prenup Priorities
For decades, prenuptial agreements focused on dividing property, income, or inheritance. Today, however, many engaged couples, particularly millennials, are placing financial value on their ideas, creativity, and entrepreneurial potential. In a recent survey conducted by the American Academy of Matrimonial Lawyers, over 50% of polled family law attorneys reported seeing an increase in prenups among millennials with intellectual property, digital assets, and start-up equity being included in the terms.
This shift reflects broader cultural and economic changes. In a world where start-ups, apps, and digital content can transform into multimillion-dollar ventures overnight, protecting intellectual property is no longer optional. It’s essential.
Intellectual Property as a Marital Asset
Think of it this way: when you start a new job, you’re often asked to sign non-compete agreements or clauses that limit your ability to profit from ideas developed at work. Marriage, as a legal contract, can raise similar questions. Without clear terms, disputes over ownership of intellectual property can become complicated, and costly, during divorce.
That’s why properly worded prenups are crucial. A vague or incomplete agreement may leave room for interpretation, potentially excluding one spouse from the benefits of an idea or invention they helped support. At NYC Prenup, our attorneys specialize in drafting agreements that address intellectual property directly, ensuring clarity and enforceability.
A Case Study: Stacy and Alan
Consider Stacy, a nurse at New York Presbyterian Hospital, and her husband Alan, an IT engineer developing a mobile app. While Stacy worked long shifts to support their household, Alan’s app was still in development. Three years later, the app sold for millions. But when their marriage ended, Stacy received little from the venture.
Why? Because at the time of their divorce, the app was still considered an “idea” when the prenup was signed. Without explicit language protecting her contributions, Stacy had no legal claim to Alan’s intellectual property, even though she had supported him financially and emotionally during its creation.
This example illustrates the high stakes of leaving intellectual property out of a prenup.
Leveling the Playing Field
Lobel also noted that prenups can help address inequities in divorce, particularly for women who historically faced financial disadvantages. Today, however, the issue extends beyond gender. In marriages where one spouse is the “idea generator” and the other provides financial or emotional support, a prenup ensures fairness for both partners.
Whether you’re a software developer, artist, entrepreneur, or simply someone with a big idea, protecting intellectual property in your prenup is a smart move.
Final Thoughts
A prenuptial agreement isn’t just about dividing assets in case of divorce, it’s about planning for the future with certainty and peace of mind. If you have business ideas, inventions, or creative projects, make sure they’re addressed in your prenup.
At NYC Prenup, our attorneys specialize in this niche area of prenuptial agreements. We understand how to draft agreements that protect intellectual property while fostering transparency and trust between partners.
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