We often deal with cases in which one or both spouses own a business. In many of those cases, a spouse received their interest in a business prior to the marriage, either from a family member, or otherwise. With regard to premarital assets and/or any other assets that a party claims is exempt, that party
It’s the Thursday before Thanksgiving and you’re getting divorced… tough as it may sound, it’s important to put down your pad and pen, eat some Turkey (tofurkey works, too) and remember what you have to be thankful for. Here’s a Top 5 for a little chuckle:
- You will get divorced… For some that day may
Back in October, I blogged about the potential amendments to the New Jersey’s Premarital Agreement Act. As of June 27, 2013, the proposed bill is now new law.
Prenuptial Agreements are meant to fix parties rights and responsibilities in advance, so as to avoid litigation and aggravation in the future. In fact, right up…
Yesterday, I posted on on the Petrakis case in New York where a coerced and fraudulently induced prenuptial agreement was set aside. This case has been all the buzz in both the main stream news and the family law community nationwide.
Many people are shocked by this decision because most agreements typically provide that the…
How many prenuptial agreements have language in them that the parties are entering into the agreement free from duress, coercion, undue influence, etc? The answer is all of them. Some even ask people to waive fraud – how you can do that I don’t know because if you knew you were being defrauded, you probably wouldn’t…
Is prenuptial agreement reform coming to New Jersey? It appears to be the case.
Prenuptial Agreements are meant to fix parties rights and responsibilities in advance, so as to avoid litigation and aggravation in the future. In fact, right up front in many if not most prenuptial agreements there is a "Statement of Intention" as follows:
It is the intention of the parties in entering into this Agreement that in the event of the termination of the marriage by divorce or death, certain rights shall be fixed in advance. It is their intention to avoid litigation and intrusion into their professional and personal lives and the lives of their families and business associates, which would perhaps otherwise occur if this Agreement had not been entered into.
Unfortunately, unlike in many other states, where prenuptial agreements are ironclad as long as there was full disclosure and the other procedural requirements are met, that has not been the case in New Jersey. The major reason for this is that in New Jersey, aside from setting aside a prenup due to failure to follow the procedural requirements, including full disclosure, agreements can be set aside if they are deemed to be unconscionable, not only when they are entered into, but when they are to be enforced at the time of the divorce. As a result, I have heard judges say that they have never enforced a prenuptial agreement. I have heard other judges give the rationale that because you don’t know what is going to happen in the future, it is unfair to enforce the agreement against a spouse where she/he waives alimony or the equitable distribution rights. That rationale misses the point as that is the entire reason for a prenuptial agreement.
We previously blogged on the Appellate Division’s notable decision in Rogers v. Gordon, which addressed the legal standard applicable to prenuptial agreements signed prior to New Jersey’s enactment of the Uniform Premarital Agreement statute. There, the Appellate Division reversed a trial court Order to the extent that it set aside the entire prenup, since, as…
We have blogged frequently regarding prenuptial agreements. There is also an advice piece on our firm’s web site entitled "Considering a Prenuptial Agreement – Should My Children Have One?" We have also recently been involved in drafting and/or negotiating a number of prenups lately. This has reminded me that one-size does not fit all…
Are prenuptial agreements entered into before the enactment in 1988 of the Uniform Premarital Agreement Act in New Jersey in New Jersey analyzed for enforceability under the standards set forth in the Act? The simple answer is no, since the standard for determining the enforceability was established by earlier cases addresses addressing the issue.
There is a three (3) prong test to determine the enforceability of these pre-Act agreements. To be enforceable: (1) there must be “full disclosure by each party as to his or her financial conditions;” (2) the party sought to be bound by the agreement understood and accepted the terms of the agreement; and (3) the agreement is fair and not unconscionable – it will not "leave a spouse a public charge or close to it, or . . . provide a standard of living far below that which was enjoyed both before and during the marriage."
The party seeking to enforce the prenuptial agreement bears the burden of proving that there was full financial disclosure to the other party, the simplest way of which is to point to schedules attached to the agreement setting out – at least in general terms and with approximate values – the assets of the parties as well as their income over the past few years prior to the marriage. Simply put, a lack of full and complete financial disclosure in the agreement by one party prevents the other party from truly "accepting" its terms. The underlying rationale is that, with full and complete disclosure, the other party might have found the agreement unfair or might not have even gotten married.
What is it about this time of year? I’ve been told that the holidays are the most popular time of year for couples to get engaged. While this a special time for the engaged couple, it is also a time when some couples should consider a prenuptial agreement or premarital contract. A prenuptial agreement is a contract between the engaged couple that addresses equitable distribution, alimony, and other issues that may arise if the couple were to divorce.
A prenuptial agreement may not be for everyone, but in many instances it makes sense. For individuals with substantial assets, a business, family wealth or children from a prior marriage, a prenuptial agreement is usually a good idea. Sometimes people think a prenuptial agreement is a reflection of how an individual feels about the potential outcome of the marriage. But in reality, this is rarely the case. For instance, a family business or assets an individual would like to leave to children from a prior relationship, are assets that need to be protected. Often the parents who own the family business insist that their children have prenuptial agreements to prevent the prospective spouse from ever having a claim to the business.