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Couples often turn to postnuptial agreements to create a shared understanding about financial matters and personal assets. A well-crafted agreement can help both spouses feel secure and respected. But to truly protect both parties, the agreement must be fair, voluntary, and transparent. When these agreements fall short of legal standards, they may lose their validity, potentially leaving one or both spouses unprotected. Knowing what factors can void a postnuptial agreement is key to ensuring it stands the test of time.
Lack of Full Disclosure
For a postnuptial agreement to be legally sound, both spouses need to be upfront about their financial situations. This means sharing complete information about assets, debts, income, and any other relevant financial details. If one spouse hides certain assets or doesn’t fully disclose liabilities, the agreement could be seen as unfair, which might cause a court to void it.
Full disclosure is a cornerstone of fairness, ensuring each spouse makes informed decisions. Without it, one party might unknowingly agree to terms that don’t reflect their true financial standing. Courts examine this issue closely, as hidden information undermines the agreement’s integrity and can impact its enforceability.
Coercion or Duress
A postnuptial agreement is only valid if both spouses enter into it willingly. If one spouse feels pressured, threatened, or coerced into signing, the agreement may not hold up in court. Coercion or duress occurs when one spouse exerts unfair influence over the other, making them feel they have no choice but to agree. This could involve threats to withhold financial support, intimidate, or otherwise control the situation.
Courts recognize that an agreement signed under stress or manipulation isn’t a true reflection of both spouses’ intentions. For a postnuptial agreement to be enforceable, each spouse must sign voluntarily, with enough time to consider the terms without feeling pressured.
Absence of Independent Legal Counsel
For a postnuptial agreement to be considered fair and enforceable, both spouses should have independent legal counsel. When each spouse has their own attorney, they’re better able to understand the agreement’s terms and any rights they may be giving up. Without separate representation, one spouse may feel pressured or lack a full understanding of the legal implications.
Courts may view the absence of independent counsel as a red flag, potentially invalidating the agreement if it appears one-sided or unfair. Working with individual attorneys ensures that each spouse’s interests are protected and that the agreement truly reflects their intentions.
Unconscionable Terms
Postnuptial agreements must be fair to both spouses to hold up in court. If the terms of the agreement are extremely one-sided or harsh toward one party, the agreement may be considered “unconscionable,” and a judge could decide it’s unenforceable. Unconscionable terms could involve provisions that leave one spouse with little or no assets or assign an unfair portion of the debt to one party.
Courts take a close look at agreements that appear to be exploitative or punitive, as these could suggest that one spouse was taken advantage of. For an agreement to be valid, it needs to reflect a reasonable balance, providing each spouse with a fair share based on their contributions and circumstances.
Changes in Circumstances
Sometimes, life events can impact the fairness of a postnuptial agreement. Significant changes, such as a major shift in financial status, serious illness, or unexpected life events, may lead a court to reassess the agreement’s terms. For example, if one spouse experiences a substantial increase in income or inherits significant assets, the original agreement might no longer feel balanced. Courts may consider whether the agreement remains fair in light of these changes. When circumstances shift dramatically, updating the agreement can help ensure it continues to meet both spouses’ needs and stands up to legal scrutiny.
Contact Our Experienced Paramus Postnuptial Agreement Attorneys
Understanding what can void a postnuptial agreement helps ensure it remains valid and enforceable. By addressing potential issues like full disclosure, fairness, and independent counsel, couples can create agreements that protect both parties. If you have questions or need help drafting or reviewing a postnuptial agreement, contact Bozanian McGregor LLC—we can guide you through the process with confidence and care.