Employer Plan Spousal Consent for Beneficiaries
A client is a participant in a company plan and is legally separated (not divorced) from his wife. The client is concerned about his wife being able to claim the proceeds of his company plan if he were to pass away, even though there is a court documented legal separation and the client has updated the beneficiary forms with his employer.
Should the client seek a spousal consent signature from his wife? I’m not sure if they plan to pursue divorce any time soon.
Permalink Submitted by Alan - IRA critic on Wed, 2014-02-26 22:11
There are too many variables here to attempt an answer since the legal separation rules vary by state, there might be plan provisions that affect the beneficiary, and there are ERISA and non ERISA plans out there. Further, before he dies his legally separated spouse could pursue a QDRO. I wonder if the HR Dept considered all these things before agreeing to change the beneficiary without a spousal waiver.
Permalink Submitted by J Futch on Thu, 2014-02-27 15:36
In addition to Alan’s comments, I’ll add that I think your client needs to discuss his concerns with the lawyer handling his separation/divorce (and if he doesn’t have a lawyer, he should get one). (No I’m not a lawyer.)
Permalink Submitted by Dennis Prout on Fri, 2014-02-28 14:48
Thanks! Your comments give us a better understanding of the questions we still need to ask.