A:



Courts have ruled that a prenuptial agreement for qualified plan (including 401(k)) assets is invalid. The logic is that only a spouse can give up the rights to spousal benefits. When someone signs a prenuptial agreement, that person is not considered a spouse at the time of signing. Where couples agree that the spouse will not make any claim to the assets, it is often recommended that :






  • A postnuptial agreement be signed immediately after marriage

The spouse sign a beneficiary designation form giving up rights to the assets immediately after marriage.



The document be notarized or witnessed by a plan representative.



To learn more, read Marriage, Divorce And The Dotted Line and Create A Pain-Free Postnuptial Agreement.



RELATED FAQS
  1. What are Social Security spousal benefits?

    Find out how the spousal benefits offered through Social Security work; learn how to qualify and how your benefit amount ... Read Answer >>
  2. Is my husband's ex-spouse entitled to receive my spouse's retirement benefits?

    The rules vary among retirement benefits. In some cases, because you are the current spouse, you will be treated as the beneficiary ... Read Answer >>
  3. How are Social Security benefits calculated for divorced spouse?

    Find out how the Social Security retirement benefit for divorced spouses is calculated, including the impact of age and outside ... Read Answer >>
Related Articles
  1. Financial Advisor

    How to Bring Up a Prenup with Clients

    Prenups aren't just for the rich. Here's how to help clients agree to one if you think they'll benefit.
  2. Financial Advisor

    Top Benefits of Prenup and Postnup Agreements

    It can be a sticky subject, but prenuptial or postnuptial agreements can head off a lot of potential messiness. Here's a quick guide.
  3. Personal Finance

    Create A Pain-Free Postnuptial Agreement

    This marital contract can underline your love for each other - not undermine it.
  4. Managing Wealth

    Postnup vs. Prenup: Marriage Roulette Protection

    ...and how to determine which, if either, your marriage needs.
  5. Personal Finance

    5 Things To Consider Before Late-In-Life Marriage

    Waiting to marry has become the norm, but do you know what to consider before saying "I do"?
  6. Managing Wealth

    Before You Remarry: Blending 2 Families' Finances

    Whether both of you are bringing kids into the new marriage, or just one of you, here are some smart solutions to preempt any financial tensions.
  7. Financial Advisor

    Older Clients Marrying: How Advisors Can Help

    There are financial issues for clients marrying at any stage of life, but older spouses may bring many more things they need to talk through to the table.
  8. Retirement

    Retirement Planning for the Non-Employed Spouse

    A stay-at-home spouse probably racks up more hours working than any office jockey. Make sure he or she is set up to save for retirement, as well.
  9. Managing Wealth

    What to Do Before Marrying: Student Debt

    If you and/or your future spouse have student debt, you need to discuss how you'll repay it once you're married.
  10. Financial Advisor

    Top Ways to Help Engaged Clients Blend Estates

    These are the top ways advisors can help clients who are engaged understand the financial impact of marriage and how it will affect their estate plans.
RELATED TERMS
  1. Prenuptial Agreement

    A type of contract created by two people before entering into ...
  2. Postnuptial Agreement

    A contract created by spouses after entering into marriage that ...
  3. Uniform Premarital Agreement Act

    A regulation that allows the parties of a premarital contract ...
  4. Alimony

    Payments made to a spouse or former spouse under a separation ...
  5. Spousal IRA

    A type of individual retirement account that allows a working ...
  6. Spousal Beneficiary Rollover

    A transfer of retirement fund assets to the spouse of the deceased. ...
Hot Definitions
  1. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
  2. Efficient Frontier

    A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a ...
  3. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  4. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the ...
  5. Border Adjustment Tax

    A tax levied on goods based on where they are sold – exported goods are exempt from tax; those imported and sold in the ...
  6. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
Trading Center