Prenuptial agreements can help prospective spouses secure their financial stability in the event that their marriage ends in divorce. These contracts have increased in popularity over the years, especially among younger Americans and couples where both individuals earn substantial income. One of the key goals for many people when they start to negotiate a prenup is to avoid having to pay alimony, which is known as maintenance under New York law. However, it is critical to remember that to enforce a prenuptial agreement, both parties must be honest about their financial circumstances prior to signing, and the terms must not be unconscionable.
The recent case of J.M. v. G.V. in the Supreme Court, Kings County, involved a husband who sought to invalidate a prenup that he believed favored his wife, who earned substantially more money than he did and also benefited from family wealth. Justice Jeffery S. Sunshine was required to weigh whether the husband, G.V., should be held to the prenuptial agreement that he signed or whether his lack of understanding at the time should justify throwing the document out. Specific points mentioned in Justice Sunshine’s analysis included the following:
- Lack of counsel — While J.M. was represented by counsel who prepared the agreement, G.V. did not have a lawyer review the language. He was told that he could retain an attorney, but that it was “unnecessary.”
- Lack of negotiation — A week before the wedding, J.M. told G.V. that her family insisted that he sign the prenup, otherwise the marriage would not occur. The court cited precedent that this type of last-minute ultimatum did not qualify as duress under New York contract law.
- Allegedly confusing language — Language within the document said that assets purchased during the course of the marriage would be considered separate property if title was in one spouse’s name. Though G.V. said that the wording and emphasis was confusing, Judge Sunshine did not agree.
- Unconscionability — When a prenuptial agreement is “manifestly unfair” a court can refuse to enforce it. Here, J.M. was much wealthier than, G.V., and he said that she failed to disclose her true income prior to signing. However, an otherwise sound prenup can be upheld even if one spouse ends up with much more than the other.
- Spousal maintenance awareness — Under New York law, before a prospective or actual spouse gives up the right to spousal maintenance, they have to know what type of payment they would receive under the state guidelines. Here, while the statutory formula was listed, no amount was given. Justice Sunshine ruled that G.V.’s waiver of spousal support would not be honored due to the fact that he was not aware of the financial impact it would have on him.
This holding shows that if parties are not careful about how they draft a prenup, they might not be able to rely on it being put into effect. If you are considering a prenuptial agreement or are facing a dispute over its enforceability, consulting with an experienced family lawyer is crucial. A thorough attorney can help create an agreement is fair while it protects your interests.
Bryan L. Salamone & Associates, P.C. advises Long Island clients on a full range of issues related to prenuptial agreements and New York divorce law. For a consultation, please call 631-388-6009 or contact us online.