When Iron Clad Contracts Aren’t So Ironclad

No one gets married with the intent of filing for divorce. However, many people recognize this as a distinct possibility. That’s why marital contracts are becoming an increasingly popular way of protecting one’s own best interests. However, these contracts aren’t always enforceable. In fact, there are various ways that marital agreements can be challenged in court.

-These agreements are essentially contracts, so they must meet relevant legal standards to be valid. Common contract requirements apply to these legal documents, but there are also certain standards specific to family law. Whether you want to ensure your marital agreement is enforceable or want to challenge it in court, understanding all these requirements is critical.

Lack of Voluntary Consent

When two people get married, their lives come together as one. In most cases, this means their finances will be completely intertwined. Prenuptial and postnuptial agreements can minimize potential issues in this area, but only if both parties willingly sign on. It’s not appropriate for one party to coerce, threaten, or otherwise make their partner sign under duress.

If this happens, then the courts may choose to invalidate the entire contract. This is one of the most common ways marital agreements can be challenged in court. For instance, a wealthy partner cannot threaten to call off the wedding and leave a financially dependent partner with nowhere to live if they don’t sign the contract.

Both parties must voluntarily consent to the agreement of their own free will.

Fraud or Misrepresentation

Marital agreements are a great way for two partners to come together and reach a fair understanding. These contracts can greatly simplify many issues if a marriage fails. However, this is only the case if each party is engaging in the process in good faith. Fraud or misrepresentation can derail everything.

For instance, envision a scenario where one party lies about the value of assets they own or has hidden money. While this might not seem like a major issue — particularly since the assets may qualify as separate property after the marriage — the fact remains that the other party did not have a full understanding of the situation they were agreeing to.

This means their decision wasn’t based on what they believed to be reality. Therefore, their marital agreement can be challenged in court. This could invalidate the entirety of the agreement, and that means a divorce case would divide property based on the laws of the jurisdiction where the divorce is filed.

Unenforceable Clauses

It’s worth noting that certain clauses in marital contracts are unenforceable. In most cases, parties won’t need to challenge these aspects of a marital agreement in court. That’s because the courts will not even consider enforcing them.

However, keep in mind that most financial contractual terms are valid when agreed to in accordance with the law. The major issues that people try to include — issues that are unenforceable — involve child custody and child support.

These decisions will always be made based on what’s in the best interests of the children involved. Clearly, it’s difficult to predict the future when signing a prenup or postnuptial agreement. This means all child-related decisions will be made during the divorce.

Improper Execution

Imagine a situation where a marital agreement is entered into by both parties with full knowledge of their situation. They follow all the relevant rules regarding consent, disclosure, and what can be included. Even in these situations, a marital agreement can still be challenged in court if it was not executed properly.

For instance, many jurisdictions require that these contracts be in writing, signed by both parties, and notarized. However, keep in mind that these requirements can vary based on where you live.

This is why it’s so important to understand the relevant laws in your area. A simple mistake can completely invalidate an agreement, so seeking legal advice is usually recommended.

Unconscionability

Even if all legal requirements are met when signing a marital agreement, the courts may choose not to enforce it. One situation where this is the case is when the contract is extremely one-sided or unfair at the time of enforcement.

For instance, imagine a scenario where a marital agreement dictates that one party gets everything and the other gets nothing. While many people assume this is what prenuptial agreements are made for, divorce orders are actually meant to be equitable.

Changes in Circumstances

Another common reason for challenging a marital agreement in court is a substantial change in circumstances. These contracts are signed at a time when both parties are in a certain economic position. If this position changes, the agreement may no longer be fair.

For instance, it’s possible that one partner has developed a severe illness or disability. In such a situation, enforcing the terms of a prenup or postnup may place undue burdens on them. The courts will consider these situations on a case-by-case basis.

Securing a Beneficial Outcome for Marital Agreements

Whether you want your marital agreement to be enforceable or want to challenge it in court, it’s imperative that you understand the underlying law. Any of the issues discussed above can invalidate portions or the entirety of a marital contract. Even after a divorce case is concluded, these circumstances may justify an order modification if an unfair decision was rendered.

These cases are complex and dynamic. There is no one-size-fits-all solution. To avoid surprises, it’s advisable to have a legal professional assist in the creation of your prenup or postnup. And since there are various ways marital agreements can be challenged in court, seeking legal representation during a divorce is critical as well.

At Barina Law Group, PLLC, our dedicated legal team is here to assist. Contact us at 254-274-2227 to schedule your custom strategy session today.