Can I Protect Retirement Funds with a Prenuptial Agreement?By Moskowitz Law Group, LLC |
One of the benefits of a prenuptial agreement is that it can allow a person to protect their retirement funds. Retirement accounts are marital assets and often divided in divorce; but a prenuptial agreement can prevent that in some cases. Retirement funds are normally considered to be marital property because they are funded with money that was earned during the marriage.
What is a Prenup?
A prenuptial agreement protects assets in case of divorce and serves as a legally binding contract that protects the finances of both spouses. These agreements differ depending on a couple’s specific circumstances, but typically state what assets are owned jointly and individually and what assets can or cannot be divided in case of divorce.
A prenup could keep a couple’s retirement assets separate and clarify expectations, such as if the working spouse has to contribute to the non-working spouse’s retirement fund.
Protecting Retirement Funds
A prenup can declare a certain percentage or all of a spouse’s retirement fund separate property and not jointly owned. All couples should consider a prenuptial agreement, even if neither spouse has high value assets, because any money earned during a marriage is considered a marital asset and could be split in a divorce.
Prenups can stipulate that money earned during the marriage does not count as a marital asset. A prenup could only include a retirement fund stipulation or be much more comprehensive to what can be split in a divorce or death.
Contact an Experienced Attorney Today
Prenups can be practical for all couples and should be considered before marriage. When a couple is considering a prenup, it may be important to discuss their decision with a lawyer. An attorney could help draft the prenup in a way that clearly outlines what assets can be divided in a divorce or the death of a spouse. A prenuptial agreement is a smart way to legally protect your assets and keep your retirement fund to yourself. If you do not sign a prenup, your spouse could have a claim to your retirement savings. If you have any questions on how to draft a prenuptial agreement and protect your retirement funds, contact an experienced attorney today.