When Will New York Courts Refuse to Enforce a Prenuptial Agreement?

More and more cases involving prenuptial agreements are being brought before the New York courts, usually by couples who have something important at stake, such as their business, inheritance, assets, or future earning capacity. Although courts do uphold these contracts, there will be instances when one party to the marriage can dispute the prenuptial agreement for being grossly unfair or fraudulent. In this article, we’ll discuss one such case.

Background of the case

In this case, the parties entered into a French marriage and later moved to the State of New York. Before the marriage, there had been an agreement between the spouses that was based on what they referred to as a “separation of estates” in accordance with French law. Generally, the separation of estates agreement means that each spouse remains the owner of their personal property during the marriage.

Many years later, the couple filed for divorce in New York. During the divorce litigation process, the wife claimed that the agreement was meant to be applied only during the marriage period and not during divorce proceedings.

On the other hand, the husband claimed that the agreement clearly showed that there was to be separate property ownership by each spouse during their marriage and after.

In this case, the lower courts ruled in favor of the husband. The wife decided to appeal the decision to the New York Court of Appeals.

The appeal

On appeal, the court was tasked with deciding whether the French prenup should be recognized in New York. The New York Court of Appeals stated that there is a very strong public policy in favor of enforcing marital contracts, regardless of where the contract was made.

The Court found that there had been a prenuptial agreement between the parties, and the language of the contract showed that the parties’ intention was to keep their property separated. Moreover, the court denied the wife’s argument that the contract would be effective only while the parties were married and would cease to exist once they were divorced.

As a general rule, parties should be bound to agreements they freely signed.

In addition, the court ruled that it would not change the terms of the prenuptial agreement due to dissatisfaction with its results.

Key takeaways

This case is an example of the importance of thoroughly examining all the details and terms of a prenuptial agreement before signing. A prenuptial agreement, even one made outside of New York, can be valid in a divorce procedure and the process of invalidating a prenup can be quite difficult.

In addition, it is important to remember that New York judges will support marital agreements. Only severe misconduct like fraud, force, or lack of legal execution can make a marital agreement invalid. It is not enough for a spouse to point out the unfairness of the prenuptial agreement in court.

As a result, a properly prepared prenup agreement will help avoid any disputes in the future. But both future spouses need to have knowledge concerning the legal aspects of the agreement before signing, especially in case of considerable wealth.

Talk to a Rockland County, NY, Family Lawyer Today

Need to draft a prenuptial agreement? The Law Office of Robert S. Sunshine can help. Call our Rockland County family lawyers today to schedule an appointment, and we can begin preparing your prenup right away.

Source:

case-law.vlex.com/vid/van-kipnis-v-van-885904782