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. How does the trust maker transfer funds into a revocable trust?

    Learn how revocable living trusts are established, how the trust maker transfers funds into the trust, and the advantages ...
  2. What is the difference between a revocable trust and a living trust?

    Learn how a revocable trust and living trust are two terms used to describe the same thing and what the key provisions are ...
  3. How do gains from my 401(k) figure into my taxable income?

    Understand what a 401(k) is and how it's used to help employees save for retirement. Learn how gains from a 401(k) figure ...
  4. Does my employer's matching contribution count towards the maximum I can contribute ...

    Maximize 401(k) contributions on your own without fear; employer contributions are separate and do not hinder you contributing ...
RELATED TERMS
  1. Qualified Longevity Annuity Contract

    A Qualified Longevity Annuity Contract (QLAC) is a deferred annuity ...
  2. Wealth Management

    A high-level professional service that combines financial/investment ...
  3. See-Through Trust

    A trust that is treated as the beneficiary of an individual retirement ...
  4. Settlor

    The entity that establishes a trust. The settlor also goes by ...
  5. Backdoor Roth IRA

    A method that taxpayers can use to place retirement savings in ...
  6. Personal Representative

    The executor or administrator for the estate of a deceased person. ...

You May Also Like

Related Articles
  1. Stock Analysis

    General Electric Returns Vs The Dow ...

  2. Retirement

    Does it Make Sense to Have an MLP in ...

  3. Entrepreneurship

    MLPs: How They Are Taxed

  4. Stock Analysis

    When Will Google Get Its Mojo Back?

  5. Retirement

    Top Tips for Rebalancing 401(k) Assets

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!