Why More Millennials Are Including Debt Clauses in Their Prenups
Millennials are rewriting the rules of marriage, especially when it comes to money. They’re marrying later, bringing in more assets and debt, and having direct conversations about finances early on.Neptune Insight: 35% of prenups filed by Neptune users include clauses about individual debt responsibility.From student loans to side hustles and credit cards, younger couples are carrying more financial complexity into marriage. Prenups are no longer taboo, they’re a practical tool for navigating emotional financial conversations and decisions. Neptune can help by offering modern, thoughtful prenups that give couples clarity, protection, and peace of mind from day one.
Key takeaways
- You can specify which debts remain separate (like student loans or personal credit cards) and which become shared responsibilities during your marriage through debt clauses
- Without a prenup, state laws decide how debt gets handled - in community property states like California, Texas, and Washington, you could face a 50:50 split of all marital debt
- The average millennial still owes over $37,000 in student loan debt and carries $6,932 in credit card balances, making debt planning essential for financial partnerships
- Nearly 40% of millennial couples discuss money daily compared to just 13% of Baby Boomers, showing that financial transparency has become a defining trait of modern relationships
- Debt clauses help you establish who's responsible if one partner takes on new business ventures or financial liabilities during the marriage
Why Debt Clauses Are on the Rise
The average millennial borrower still owes over $37,000 in student loan debt. Meanwhile, data from the Federal Reserve Bank of New York (Q4 2024) shows that millennials carry an average credit card balance of $6,932.
Add in early-stage businesses, freelance income, or investments, and you’ve got a lot more to sort through than just who pays the electricity bill.
Debt clauses help by clearly spelling out:
- Which debts stay separate, like student loans or personal credit cards
- What kinds of debt, if any, will be jointly handled during the marriage
- Who’s on the hook if one partner takes on a new business or liability
What Happens Without One
Without a solid prenup consisting of a debt clause, state laws decide for you. In most places, debt taken on during the marriage can become shared, even if it’s in just one person’s name.
In community property states like California, Texas, and Washington, that could mean a 50:50 split of all marital debt, unless a prenup says otherwise.
Transparency Is the New Norm
Millennials value financial honesty. Nearly 40% of millennial couples say they talk about money every day. Compare that to just 13% of Baby Boomers, and it’s clear: open money talk is a defining trait of modern relationships.
Prenups are becoming part of that honesty. They allow couples to plan without assumptions, reduce risk, and avoid future surprises.
Lay the Groundwork with Neptune
Including a debt clause isn’t about predicting a breakup. It’s about protecting both partners and being realistic about what you’re bringing into the marriage.
Neptune helps modern couples create prenups that reflect today’s financial realities clearly, calmly, and with long-term goals in mind. Build a stronger financial foundation with Neptune.
Frequently asked questions
What is a debt clause in a prenup?
A debt clause in a prenup clearly outlines which debts stay separate (like student loans or personal credit cards), what debt will be jointly handled during marriage, and who's responsible if one partner takes on new business or liabilities. It helps couples avoid having state laws automatically decide how debt is divided.
How much debt do millennials typically have?
The average millennial borrower still owes over $37,000 in student loan debt. According to Federal Reserve Bank of New York data from Q4 2024, millennials also carry an average credit card balance of $6,932.
What happens to debt without a prenup?
Without a prenup containing a debt clause, state laws decide how debt is handled. In most places, debt taken on during marriage can become shared even if it's only in one person's name. In community property states like California, Texas, and Washington, this could mean a 50:50 split of all marital debt.
Do millennial couples talk about money more than older generations?
Yes, nearly 40% of millennial couples say they talk about money every day, compared to just 13% of Baby Boomers. This financial transparency is a defining trait of modern relationships and helps explain why more millennials are choosing prenups.
Are debt clauses only for couples expecting problems?
No, including a debt clause isn't about predicting a breakup - it's about being realistic about what each partner brings into the marriage and planning without assumptions. It helps both partners reduce risk and avoid future financial surprises while building a stronger foundation.