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

By Denise Appleby AAA
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.



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