§ 5.03 AGREEMENTS AFFECTING FUTURE ACQUISITIONS

• Jurisdiction: Washington

§ 5.03 AGREEMENTS AFFECTING FUTURE ACQUISITIONS

A prenuptial or postnuptial agreement changing the character of existing or after-acquired property may have the unintended effect of exposing such property to the claims of creditors who, but for the agreement, could not have reached the property. Converting future separate acquisitions to community property subjects such acquisitions to the claims of community creditors. See Merriman v. Curl, 8 Wn. App. 894, 509 P.2d 765 (1973).

Agreements between spouses as to the character of property may be inconsistent with future or existing designations of beneficiaries in pension plans, insurance policies, or other arrangements taking effect on death. An agreement converting existing and after-acquired separate property into community property overrides a spouse's inconsistent designation of the beneficiary of that spouse's pension plan made when the plan benefits were still separate property. Neeley v. Lockton, 63 Wn.2d 929, 389 P.2d 909 (1964).

In part, the reasoning in Neeley was based on the restraint on the husband's power of disposition stated in Occidental Life Insurance Co. v. Powers, 192 Wash. 475, 74 P.2d 27 (1937). Although that restraint was removed by Francis v. Francis, 89 Wn.2d 511, 573 P.2d 369 (1978), as to the husband's one-half interest, the result in Neeley should...