There are two main types of marital contracts. Some couples negotiate prenuptial agreements before they get married. Other couples that have already committed to one another might negotiate postnuptial agreements.
Both types of marital contracts may help clarify what spouses expect from the marriage. They can also lay the foundation for an amicable, uncontested divorce by setting clear terms for property division and other financial matters.
People who have previously signed marital agreements may expect their prenuptial or postnuptial agreement to dictate the outcome of a pending divorce. Still, there are certain scenarios in which the courts may set aside marital contracts. What scenarios can undermine the usefulness of a prenuptial or postnuptial agreement?
1. Unconscionable terms
Frequently, disputes about marital contracts relate to how imbalanced they are. Sometimes, one spouse wants protection because they earn more or have more assets.
If the agreement centers on the needs of one spouse without offering anything of substantial value to the other spouse, the courts may agree that the contract is unconscionable. Truly unfair and imbalanced marital contracts may not hold up under scrutiny in family court.
2. Lack of representation
The idea that each person signing a prenuptial or postnuptial agreement needs to pay a separate attorney may seem ridiculous at first. However, lawyers have an obligation to put their clients’ needs first when providing legal representation.
The person who hires the lawyer benefits from their fiduciary duty, while the other spouse may not receive equal consideration in that scenario. If one spouse failed to retain a lawyer to review the agreement, they could potentially claim that they were unaware of the implications of the contract and that they agreed to it without understanding it.
3. Duress
Generally speaking, any contract, including a prenuptial agreement, should be the result of a voluntary agreement between parties. If one spouse can claim that duress led them to sign the agreement, the courts may set it aside during divorce proceedings.
Direct threats of physical or financial harm could constitute duress. An ultimatum to sign a prenuptial agreement while pregnant and engaged could also create duress.
Reviewing the agreement itself and the circumstances surrounding its creation can help people understand their rights. Prenuptial and postnuptial agreements can often streamline the divorce process, but they are not always enforceable and valid contracts. Spouses may need help determining if their marital contracts are enforceable in family court.