Frequently Asked Question

May 07 2008 | Filed Under ยป ,

What effect will a prenuptial agreement have on a 401(k)?

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.
    by

    Denise Appleby

    Denise Appleby
    Denise Appleby is founder and owner of Appleby Retirement Consulting,which provides technical consultation, content, coaching, writing, editing and training services on related topics.


    With more than 14 years of experience in the IRA and defined-contribution plans fields, Appleby has held several senior retirement-plan related positions with Pershing LLC, which included vice president of plans products and services, retirement plans manager, trainer, training manager, compliance consultant, technical help desk manager and writer.
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