Grounds for Invalidating a Prenup in New York
A prenuptial agreement, or “prenup,” is a legally binding contract entered into before marriage that outlines how parties will divide assets and debts in the event of separation, divorce or death. While New York courts generally uphold these agreements, there are certain circumstances under which a prenup can be invalidated. If you are concerned about the fairness or enforceability of your prenup, it is essential to understand the legal grounds that may render it void. Below, a New York City prenuptial agreement attorney from the Law Office of Vivien I. Stark, P.C., outlines the key circumstances under which a prenup can be challenged or invalidated in New York.
Lack of Voluntary Consent
One of the most common factors a court takes into consideration when deciding whether to throw out a prenup is that one party did not enter into the agreement voluntarily. If there is evidence of coercion, duress, or undue pressure, a judge may decide the agreement is invalid. For example, if one party pressured the other to sign the prenup shortly before the wedding or threatened them with the cancellation of the marriage, the court may view the contract as unfairly obtained. However, New York courts have upheld agreements that were made shortly before the wedding when the agreement would otherwise be enforceable.
Lack of Full Financial Disclosure
New York law requires both parties to fully disclose their assets, income, and liabilities before signing a prenup. The court may deem the agreement invalid if one party conceals significant financial information, such as offshore accounts, real estate holdings, or substantial debts. Transparency is key to ensuring that both parties understand what they are agreeing to and can negotiate fairly.
Unconscionability
Courts in New York will not enforce an unconscionable prenuptial agreement, meaning it is so one-sided or unfair that it shocks the conscience. This does not mean a prenup must divide everything equally, but it cannot leave one party destitute while the other walks away with significant wealth. If, for instance, one spouse waives all rights to spousal support and ends up with no resources while the other retains millions in assets acquired during the marriage, the court may choose not to enforce that part of the agreement.
Improper Execution
To be legally enforceable in New York, a prenup must meet specific formal requirements. It must be in writing, signed by both parties, and acknowledged in the same manner as a deed, typically before a notary public. If the prenup was not executed properly, a court may declare it invalid regardless of its contents.
Fraud or Misrepresentation
If a party was misled into signing a prenup based on false information or omitted facts, this can constitute fraud. For example, if one spouse misrepresents their income, hides ownership in a business, or lies about debts, a court may determine that the agreement was procured by deception and refuse to enforce it.
Changes in Circumstances
In rare cases, a court may set aside a prenup if circumstances have changed so drastically that enforcement would be unjust. This typically applies when one party suffers extreme hardship due to illness, disability, or long-term unemployment, and the agreement did not reasonably anticipate such changes.
Navigating the complexities of prenuptial agreements requires careful attention to detail and a thorough understanding of New York law. While prenuptial agreements are generally enforceable, several factors can lead to their invalidation. By understanding these potential grounds for challenge, individuals can ensure their prenuptial agreements are fair, transparent, and legally enforceable.