Prenuptial Agreements: When Can They Be Overturned?
Nobody with honest intentions expects to divorce, but high-wealth individuals increasingly take advantage of prenuptial agreements to protect them from fortune hunters. Many families like to keep certain assets in family hands, and prenuptial agreements can ensure that family property stays with the family.
Prenuptial agreements can protect both parties by ensuring that the less wealthy party is compensated for each year of marriage. Of course, the ultimate goal of most prenuptial agreements is to limit one party’s ability to access family wealth.
Judges Overturn Prenuptial Agreements for Many Reasons
Although there aren’t any set-in-stone reasons for overturning prenups, most reasons that judges overturn prenuptial agreements are based on fairness. Some common reasons for disallowing the terms for a prenup include the following situations:
- Fraudulent Terms: Prenups require each spouse to disclose their personal assets. Many wealthy people routinely undervalue their assets. Providing that assets were hidden or undervalued is evidence of fraud, which can negate the terms of the deal.
- Paperwork Not Being Properly Filed: There are technical requirements for the paperwork, the classic matter of handling things correctly. Misfiled paperwork, proofreading errors and poor language can negate the terms of the contract.
- Contracts Made Under Duress: Mental and physical duress are valid reasons for throwing out a prenuptial agreement. Duress can be difficult to prove, but the strategy often works with strong evidence. Proving a lack of mental capacity to understand the terms of the agreement when you signed it is also a valid reason for overturning the agreement.
- Ridiculous or Unenforceable Conditions: The judges tend to accept most conditions that both spouses agree to, but some things stand out as ridiculous, illegal, or unenforceable. These might include stipulations that one party must keep pure thoughts or that one party refuses to pay child support. People often put in clauses to prohibit weight gain, specify hair color, or define the frequency of sexual relations. These are adequate grounds for overturning the agreement.
- You Didn’t Have Legal Counsel: Both parties must have separate lawyers. If you sign an agreement informally without a lawyer, you could get the agreement overturned.
Prenuptial Agreements: What Makes a Successful Document?
If you’re preparing a prenuptial agreement, it’s critical to have a lawyer draw up the document in writing. Word-of-mouth agreements don’t work. Make sure that you discuss the financial issues rationally without putting the other party under duress.
If you prepare the document yourself, it’s important to have it reviewed by a family law attorney. The agreement must be signed in front of witnesses, one of which is a notary. Financial information must be reported accurately and included in the document.
Statistics Favor Being Prepared
Like many other things in life, the more prepared you are going into prenup negotiations, the better off you’ll be. It’s also important to understand the laws, including what is and is not considered to be signing under duress. Believe it or not, chasing a bride down the aisle to sign a prenup is not considered undue duress.
Divorce and marriage rates statistics show that marriage continues to be popular, and the divorce rate is declining. According to ifstudies.org, out of 1,000 marriages, 14.9 end in divorce. That’s the lowest rate of divorce in the past 50 years.
That means marriages are lasting longer, which is good news for couples planning to wed. However, preparation, communication and honesty are essential elements of a successful marriage. Prenuptial agreements can protect your rights and ensure that you receive a decent settlement. Getting the right legal advice and representation is critical.