Curious how blockchain technology will impact the way couples protect their assets?
Prenuptial agreements aren’t new. But the way prenups are created, stored and enforced is about to change… drastically.
Thanks to smart contracts.
But first… why now?
Millennials and Gen Z couples are driving major growth in prenups. A recent Harris Poll survey found that approximately 50% of adults in the U.S. believe couples should have a prenuptial agreement. That’s DOUBLE the percentage of Americans that believed this just 10 years ago.
Millennials and Gen Z see prenups less as a sign of distrust and more as a responsible financial planning tool.
The problem?
Paper documents. Manual enforcement. Legal action.
Prenups have been created the same way for decades. Smart contracts can automate entire separation agreements.
But how? Will they replace family lawyers? Let’s break it down.
Whether you work with knowledgeable family lawyers in Gleneagle or plan on handling your separation agreement independently, this article is for YOU.
Here’s what you’ll discover:
- What Are Smart Contracts?
- Prenups Going Digital
- Smart Contracts & Separation Agreements
- Challenges With Smart Contracts
- What This Means For YOU Today
What Are Smart Contracts?
You’ve probably heard the term ‘smart contract’, but do you know what they are?
Smart contracts are computer programs that live on a blockchain. When predetermined conditions are met, the smart contract automatically executes specific actions.
Here’s how it works:
Traditional contracts say “If X happens, then Y should occur.”
But someone still has to enforce Y from happening. Smart contracts automate that process.
Need an asset to be transferred to your spouse if the marriage ends? A simple smart contract could manage the transfer automatically when the marriage terminates. No back and forth after the fact. Straightforward.
Smart contracts aren’t experimental. According to Coinlaw, 68% of legal firms in the United States had implemented smart contracts by the beginning of 2025.
Family law is next.
Prenups Going Digital
The demand for family law services has seen significant growth over the past decade.
That demand has been led by prenuptial agreements.
Pre-marital agreements are growing in popularity with younger couples. More than 40% of Millennials and Gen Z couples reported signing a prenup BEFORE getting married. That’s compared to only 15% of couples overall.
Why the sudden shift?
People are waiting longer to get married. Both partners are coming into marriages with significant assets. Some even have debts or small businesses.
A prenup allows couples to specify who owns what. It keeps you from having to argue about it later if you separate or get divorced.
The current process can be cumbersome though. Traditionally, couples have worked with a separation agreement lawyer to:
- Gather important asset information
- Hash out the specifics of who gets what
- Manually store and enforce the terms
All of that changes with smart contracts.
Imagine being able to automate the transfer of certain assets with a smart contract. Your agreement is stored digitally on a blockchain so there’s no question about its validity.
Want to know the best part?
It’s not possible to tamper with digital smart contracts. Both parties can trust that the terms they agreed to will be executed.
Smart Contracts & Separation Agreements
Alright, so how do smart contracts apply to separation agreements?
Smart contracts could revolutionize separation agreements. Here’s how:
- Smart contracts automate asset transfers
- Payments can be automatically distributed on a set schedule
- Both parties can trust that the agreement won’t be digitally altered
- Couples can save money by not having to pay for enforcement
Here’s an example to understand how this works in real life.
Tyler and Jessica decide to get a prenup. In the agreement, they outline who keeps what if they divorce. They agree that Tyler keeps the car, but Jessica will receive $500/month in spousal support.
Once the marriage ends, a smart contract could automatically make monthly payments to Jessica’s bank account. Tyler cannot back out or refuse to pay later.
Instead of going back and forth with a separation agreement lawyer, arguing, or taking legal action… divorces can be simple smart contract executions.
Challenges That Still Exist
Smart contracts for prenups are not a flawless solution.
Although smart contracts hold tons of potential, there are challenges that need to be addressed.
For one, laws still need to be put into place. Many states have laws that recognize electronic contracts. But smart contracts related to family law are still being written.
You’ll always need a specialized separation agreement lawyer to ensure smart contracts meet legal standards.
Not everything can be coded into a contract. Aspects like child custody and child support are determined by family court. You cannot specify who gets custody of your children in a prenup.
Also, think about adoption… what happens when a couple adopts a child mid-marriage? Smart contracts are not perfect.
Not everyone is tech-savvy. Lawyers will need user-friendly platforms to enter the terms of a smart contract. Right now, those tools are still being built.
People are emotional. Sometimes divorces and breakups are messy. Having a set of coded rules to follow doesn’t remove that emotion. It doesn’t eliminate the need for separation agreement lawyers.
What This Means For Couples Today
So where does that leave couples?
If you’re thinking about signing a prenup, start learning about smart contracts.
Smart contracts are going to become the norm. Family law won’t be left behind.
Here’s what you should be doing:
- Consider a prenup BEFORE you get married
- Find a separation agreement lawyer that specializes in both traditional and digital agreements
- Educate yourself on how smart contracts can be used for family law
Technology moves fast. Don’t get left behind when it comes to protecting your assets.
Pulling It All Together
Prenups are about to change. Forever.
The technology to automate, store, and enforce prenuptial agreements already exists. Lawyers and lawmakers are catching up.
Here are the biggest takeaways from this article:
- Smart contracts automate the transfer of assets when terms are met
- Prenups are growing in popularity, especially among Millennials and Gen Z
- Blockchain technology allows for agreements to be stored digitally and securely
- State governments are starting to recognize smart contracts as legal and binding
- You should ALWAYS work with a family lawyer that specializes in separation agreements
The future of family law is digital. Get ahead of the curve and protect your assets.
