4 Scenarios That Could Invalidate a Marital Contract
Marital contracts are also called “prenuptial agreements,” “postnuptial agreements,” “premarital contracts,” or various combinations of all these phrases. They help define marital v separate property and how to divide marital assets, and sometimes involve spousal support as well. However, these contracts are not always set in stone, even if both parties signed them willingly. In this article, we explore common scenarios that could lead to prenuptial agreement challenges in court.
#1. Lack of Consent
Mental Incapacity
Entering into a marital contract requires a clear and present mind. When one party lacks the mental capacity to understand the implications of the agreement, it can lead to significant legal challenges.
Mental incapacity at the time of signing could be the result of:
Illness
Disability
Intoxication
Duress and Undue Influence
Duress involves a situation where one party is pressured or coerced into signing the agreement. Undue influence, on the other hand, occurs when one party uses their position of power to obtain an unfair advantage in the agreement.
Both parties must enter into the contract voluntarily and without any form of manipulation. If there's evidence that the agreement was signed while under duress or undue influence, it may not hold up in court.
#2. Fraud
Concealment of Assets
Transparency is the cornerstone of any marital contract. When one party intentionally conceals assets or provides fraudulent information, the agreement's foundation is compromised. This deceit can lead to the contract's invalidation, as it is predicated on the understanding that both parties have a true picture of each other's financial landscape.
Misrepresentation
Misrepresentation, whether intentional or unintentional, can profoundly affect the enforceability of marital contracts. A misrepresentation occurs when one party provides inaccurate information, leading the other party to enter into an agreement based on false pretenses.
Examples of misrepresentation include:
False financial disclosures
Lies about future intentions
Any other falsehood that influenced the decision to sign the contract
#3. Legal Problems
State-Specific Legal Requirements
Each state has its own set of legal formalities that must be met for a marital contract to be valid. They may include the necessity of the presence of witnesses during signing, mandatory waiting periods, or the need for the agreement to be in writing. If state-specific formalities are not adhered to, the contract may be invalidated. In New York, the agreement must be signed by both parties before a notary public in the same formality as a deed to be recorded
.
#4. Fairness Issues
Unconscionability
An agreement may be considered “unconscionable” if it is excessively one-sided or unfair to one party so that it “shocks the conscience of the court.” This is usually in the case where one spouse walks out of the marriage with all of the assets, and the other spouse leaves with nothing.
When it comes to spousal support, the agreement must be fair when made, and fair at the time of the entry of the judgment of divorce. In NY, the court will not allow a spouse to become a “public charge.”
Samuelson Hause PLLC is here to help you create, challenge, or enforce marital contracts. To schedule time with our team, contact us online or call our office at (516) 584-4685.