Protecting your 401(k) with a prenup contract

It’s hardly shocking that prenuptial agreements are on the rise, given the shaky economy. Indeed, the number of premarital contracts has increased by 73% over the past five years, according to a recent study by the American Academy of Matrimonial Lawyers.

More surprising, however, is what individuals are increasingly looking to guard — their retirement nest eggs. Attorneys said they have noticed a 36% bounce in the number of prenups that protect 401(k)s and pension assets over that same time period.

“People who have already lost a big chunk of their nest egg want to make sure it will be protected,” said Arlene Dubin, a partner at Moses & Singer LLP and the author of “Prenups for Lovers” (Villard Books, 2001). “The fact that people are seeing their 401(k)s drop has also really contributed to an increase in the number of prenuptial agreements.”

People want to protect their retirement assets, particularly now, agreed Marlene Eskind Moses, president of the AAML and an attorney with Moses Townsend & Russ PLLC. “They want to make sure these retirement assets won’t take another hit,” she said.

Tim Wesling, president of Wesling Financial Planning Services Corp., which manages nearly $20 million, added: “I’m suggesting to anybody who has anything at all [that they] protect what they can — especially now.”

The study also found that women are increasingly initiating prenuptial agreements.

In fact, 52% of divorce attorneys surveyed this month said they’ve seen an increase in the number of women demanding prenups in the past five years.