8 Ways a Prenup May Be Challenged as Unenforceable in New Jersey
Prenuptial agreements, commonly known as prenups, are legal contracts made by couples before marriage that detail how assets and debts will be divided in the event of a divorce. While many couples in New Jersey use prenups to protect their financial interests, these agreements can be challenged and deemed unenforceable under certain circumstances.
Understanding how a prenup might be challenged in New Jersey can help couples create a more substantial, defensible agreement.
Lack of Full Financial Disclosure
One of the most common reasons a prenup may be challenged is a lack of full financial disclosure by one or both parties. In New Jersey, both parties must provide a full and honest account of their financial situations, including assets, liabilities, income, and potential inheritances. The agreement can be invalid if one spouse hides assets or significantly underreports their financial standing.
For example, if one spouse owns a business or has offshore bank accounts and fails to include them in the agreement, the court may find that more transparency is needed, which could lead to the prenup being set aside. Each party must understand the other’s financial situation to ensure fairness and prevent future disputes.
Coercion, Duress, or Undue Influence
A prenuptial agreement must be entered voluntarily and without duress, coercion, or undue influence. If one individual can prove that they were pressured or forced into signing the agreement, the court may deem it unenforceable.
Coercion can take many forms, such as one partner threatening to cancel the wedding if the other does not sign the prenup. Emotional manipulation or using one’s position of power in a relationship to influence the other to sign an agreement they otherwise would not have signed can also be considered undue influence.
To avoid future challenges based on these claims, both parties must take the time to fully understand all of the agreement’s terms and consult with their own independent attorneys.
Unconscionability or Gross Unfairness
A grossly unfair prenup to one party at the time it was signed or at the time of divorce can be challenged on the grounds of unconscionability. In New Jersey, unconscionability occurs when the prenuptual terms are so one-sided that they shock the court’s conscience.
For instance, if one spouse is left with virtually nothing while the other retains most of the assets, the court may find the agreement unconscionable. The financial circumstances of both parties at the time of divorce are also considered. If significant changes occurred, such as one spouse becoming disabled or losing their job, the court may not enforce the agreement.
It’s important to note that just because a prenup seems to favor one party more than the other does not necessarily make it unconscionable. However, the agreement mustn’t be excessively lopsided.
Failure to Follow Legal Formalities
New Jersey has strict legal requirements for a prenup to be enforceable. The agreement must be in writing, signed by both parties and voluntarily executed. Additionally, both parties must have the opportunity to seek independent legal counsel, and there must be a statement in the prenup that both parties understand the agreement’s terms.
The court can refuse to enforce the prenup if these formalities are not followed. For example, the prenup can be thrown out if the agreement is verbal or if one party needs a reasonable opportunity to seek independent legal advice.
To avoid this type of challenge, couples should ensure all procedural requirements are met when drafting their prenup.
Insufficient Time to Review the Agreement
Courts in New Jersey may also only enforce a prenup if one party had sufficient time to review the agreement before signing it. Rushed agreements signed just days or hours before a wedding can be seen as inherently unfair because the parties may need more time to fully understand the contract’s terms or seek proper legal counsel.
For example, if a prenup is presented to a spouse the day before the wedding and they feel compelled to sign it due to the impending marriage, they could later argue that they didn’t have enough time to consider the agreement. Courts typically want both parties to have ample time to reflect on the terms and consult with their respective lawyers.
Duress Resulting from the Timing of the Agreement
Related to insufficient time for review, the timing of when a prenup is presented can lead to claims of coercion. If one party feels pressured to sign the agreement due to the proximity of the wedding, it could result in the prenup being invalidated.
For instance, if a bride or groom is presented with a prenup just days before the wedding and feels they have no choice but to sign it to avoid canceling the event, this could be considered duress. The prenup may be challenged in these situations, especially if the spouse needs more time to review the terms or consult legal counsel thoroughly.
Improperly Drafted Agreement
An improperly drafted prenup or ambiguous language can also be challenged in court. If the terms of the agreement are clear and contradictory, the court may have difficulty enforcing them.
For example, if the prenup includes a provision that is illegal or goes against public policy—such as an agreement that absolves one spouse from paying child support—it will likely be struck down by the court. New Jersey courts prioritize the well-being of children, and any provision that attempts to waive or reduce child support obligations will not be enforceable.
The prenuptial agreement must be written in clear, precise language that prevents interpretation or confusion. Ambiguity can lead to future litigation and undermine the agreement’s validity.
Changes in Circumstances
Finally, significant changes in circumstances that render the prenup unfair or inequitable at the time of divorce can lead to it being challenged. Life is unpredictable, and when signed, what seemed like a fair agreement may no longer be reasonable years later.
For example, if one spouse becomes severely ill, loses their job, or is unable to work due to unforeseen circumstances, enforcing the prenup may result in a grossly unfair outcome. New Jersey courts will consider whether the enforcement of the agreement would create an undue hardship for one spouse, and if so, they may choose to modify or invalidate specific provisions of the prenup.
Couples should periodically review their prenup and adjust if their circumstances change to protect against future challenges.
Contact Dalena & Bosch for Expert Prenup Guidance
Navigating the complexities of prenuptial agreements in New Jersey can be challenging, especially when disputes arise over the enforceability of the contract. Whether you are considering creating a one or need legal advice regarding the enforceability of an existing agreement, the experienced family law attorneys at Dalena & Bosch are here to help.
With years of experience specializing in divorce and family law, we provide compassionate and expert guidance customized to your unique situation.
At Dalena & Bosch, we are committed to helping our clients understand their rights and protect their interests. Contact us today for a consultation, and let our professional team assist you with all your prenuptial and family law needs.