More than half of Canadian GenZers say they would get a prenup before marrying or moving in with their partner, a survey from TD Bank finds — a sharp increase compared to previous generations.
The survey revealed that 52 per cent of Gen Z respondents would want their partner to sign a prenuptial or cohabitation agreement, compared to the general national average of 31 per cent.
Experts weighed in on the trend that reflects growing concerns about financial protection, and economic uncertainty faced by younger generations.
Founder of psychotherapy provider Canadian Therapy and couples-therapy expert Preeti Taneja, says the trend is reflective of evolving relationship dynamics, and the social and cultural baggage that comes with it.
“We are seeing more couples trying to understand their partners and their thought process around certain choices [or] decisions they may have to make, including cohabitation agreements and prenups,” Taneja told Now Toronto.
“Managing a relationship for each individual will vary when it comes to prenups and cohabitation because there are so many family and social aspects to consider. The roles of couples have also evolved significantly and people are looking for a financial safety blanket so they are protected.”
For unmarried couples living together, a cohabitation agreement can offer a similar layer of financial clarity.
Taneja emphasizes that it is important for couples to communicate properly about these decisions, which could make all the difference.
“It’s important to have a foundation built on transparency and open communication so couples are encouraged to express how they would like to share financial responsibility earlier in the relationship or upon cohabitation or residing with each other,” she said.
As prenups remain a sensitive topic for a lot of couples, the therapist explained that a strong relationship foundation is essential so that couples have the right tools to navigate difficult conversations.
Financial transparency also has the power to strengthen relationships, depending on each partner’s upbringing and worldview.
“People’s expectations and understanding of financial literacy are very different such as upbringing including cultural backgrounds, priorities of what they see as being important and how they saw money being managed as young people,” she said.
Damian May, the founder of Couples Counselling Toronto and a leading couples therapist, says that financial conversations in therapy can often reveal deeper intergenerational tensions.
“The problem I have with prenups is that it is normally driven by the parents and that’s a red flag at the get go,” May told Now Toronto.
“A lot of families will push for a prenup when they don’t really understand the fact that it’s not really needed in most cases,” he continued to say.
May warns that third-party pressure, especially when coming from one side of the family, can fracture trust between partners.
“I’ve had a couple split over it,” May said.
But May also emphasized that the way couples approach these conversations is important, encouraging partners to talk about the meaning of money and set short-term, mid-term, and long-term financial goals together to build a shared future.
But, prenups are not the only thing in Gen Zers’ minds, they are also concerned about financial compatibility in general.
Among the findings, the TD survey found that 71 per cent of Canadians say they would consider ending a relationship over financial dishonesty, while 65 per cent say they would consider it a deal breaker if their partner never offered to pay, and 56 per cent say bad spending habits would be enough to walk away.
For Gen Z, financial compatibility is even more of an important factor in relationships, with 65 per cent saying a partner’s net worth matters to them, and one in four saying they likely wouldn’t date someone who earns less than them.
Nicole Ewing, principal of wealth planning at TD Wealth, points out that proactive financial conversations are key to relationship stability.
“Working together with your partner to tackle money conversations head on could help bring you both understanding and clarity in your relationship and respective financial futures,” Ewing said.
For young couples trying to balance it all, Taneja’s advice is clear: invest in your relationship and go to therapy.
“Invest in your relationship and find healthy coping tools to manage your relationships so you’re able to have constructive healthy conversations around finances,” she said.
