Marital agreements, often known as prenuptial or postnuptial agreements, play a pivotal role in defining financial and property rights between spouses. These legal contracts aim to provide clarity and reduce potential disputes during a marital relationship or in the event of a separation.
These agreements are effective tools for protecting assets or addressing specific concerns, but not all of them can hold up under scrutiny. Various legal and procedural errors can render them invalid.
Lack of Voluntary Consent
Voluntary consent means both parties willingly agree to the terms without pressure or manipulation. Coercion, such as threats or intimidation, can invalidate a marital agreement. Undue influence, where one party exploits a position of power, also undermines consent. Duress, including forcing someone to sign under severe stress or fear, further breaches a voluntary agreement.
When evidence of these circumstances exists, courts may determine the agreement unenforceable, protecting the disadvantaged party from unfair arrangements.
Failure to Provide Full Disclosure
California law mandates complete financial disclosure during marital agreements. Parties must share accurate information about income, assets, and debts. Hiding assets or misrepresenting financial details creates an imbalance that undermines fairness.
Courts often deem agreements invalid when parties conceal critical financial information. Transparency builds trust and ensures that both individuals negotiate in good faith. Without honest disclosure, one party may unknowingly agree to terms that misrepresent the scope of financial responsibilities or benefits.
Absence of Independent Legal Counsel
Both parties must have the chance to consult independent legal counsel when entering a marital agreement. This opportunity ensures that individuals fully understand their rights and obligations.
Without proper legal advice, one party may unknowingly consent to unfair terms, which can challenge the agreement's validity.
Unconscionable Terms
The term “unconscionability” refers to terms that are so one-sided, they are shocking. Unconscionable terms may demand that one party bear all financial burdens, or they relinquish significant rights. For example, clauses leaving one spouse with nothing after years of marriage may be deemed grossly unfair.
Courts play an active role in reviewing agreements, ensuring terms are equitable and free from exploitation. Judges may invalidate agreements containing unconscionable provisions to preserve fairness.
Improper Execution
Proper execution of an agreement requires compliance with specific legal standards. California law often mandates signing in the presence of a witness or notarization to ensure authenticity. Agreements signed without allowing sufficient time for review may face challenges in court. Failing to meet these procedural requirements can render the contract unenforceable.
Courts closely examine whether parties followed proper protocols, as deviations may undermine the agreement’s validity or suggest unfair practices.
Violations of Public Policy
California courts often reject agreement provisions that contradict public policy. For instance, any terms restricting child custody or visitation rights without considering a child's best interests may face invalidation. Unenforceable clauses tied to illegal acts or forbidden practices undermine the agreement as a whole.
Such violations lead judges to strike specific provisions or void entire contracts. Courts prioritize fairness and legality when assessing these agreements to protect the fundamental rights of all parties involved.
Changes in Circumstances
Significant changes in circumstances can affect the validity of agreements over time. For example, a major shift in financial status might render spousal support terms unrealistic or inequitable. Similarly, relocation due to a new job opportunity could disrupt custody arrangements, requiring adjustments.
Courts assess whether changed conditions fundamentally alter the fairness or feasibility of the original terms. When agreements no longer reflect current realities, judges may decide to modify specific provisions to better serve the parties involved.
Getting Protection from an Attorney
Attorneys provide invaluable assistance in drafting a prenuptial agreement. They help ensure clarity by drafting precise and enforceable terms. Their skills help parties avoid ambiguities that could lead to future conflicts.
Lawyers also incorporate applicable state laws to strengthen the agreement's validity. By addressing potential legal challenges in advance, an attorney reduces the risk of disputes later.
When disputes arise, attorneys offer critical support by advocating for their clients. They analyze the contested provisions and present compelling arguments to uphold their client's interests.
Legal professionals also assist in negotiations, helping parties reach fair resolutions without prolonged court battles. Their representation helps keep agreements fair and compliant with relevant legal standards, even amidst disagreements.
Burch Shepard Family Law Group is here to help you craft a fair, actionable prenuptial agreement. You can reach our team by contacting us online or calling us at (949) 565-4158.