What is Required for Validity of a Premarital Agreement?

To ensure the validity of a premarital agreement in a contested divorce or probate proceeding, it must be proven in court. A contest may arise when one party, such as in a divorce, seeks spousal maintenance and challenges the prenuptial provision that waives the other spouse’s obligation to pay. One common question is whether a prenuptial agreement must be in writing to be enforceable—let’s explore this key aspect.

The best way to make sure a court will uphold the terms of a premarital agreement is to do your homework and ensure that every procedural and substantive step is in place and followed appropriately. First, a premarital agreement must be in writing and signed by both parties. Additionally, a prenup only becomes valid after the marriage, so it doesn’t apply to called-off engagements. According to the Texas Family Code, a premarital agreement is not enforceable if:

1. One or both spouses did not sign the agreement voluntarily.
2. When signing the agreement, one spouse failed to provide the other with a fair and reasonable disclosure of their property or financial obligations, didn’t voluntarily waive, in writing, the right to such disclosure, and lacked adequate knowledge of the other party’s property or financial obligations. As a result, the agreement was unconscionable.

As discussed previously, premarital agreements are a unique type of contract. As noted above, consideration per se (something of value given in exchange for a promise) isn’t necessary to bind the parties to the agreement. A binding contract allows the court to enforce it against the violation party. Still, many argue the promise to marry is adequate consideration when exchanging for a pledge to sign a premarital agreement. With review satisfied, the remaining requirements for validity are the legal capacity to contract and voluntariness.

Legal Capacity to Contract

Does the person have the requisite legal capacity to enter a premarital agreement? In a divorce, if one party challenges the premarital agreement, the court will actively examine the circumstances surrounding the contract’s execution.

A party to an agreement must have the ability to understand:

1. Nature
2. Extent
3. Character and
4. Effect of the agreement

They must understand what signing the agreement reasonably will do in terms of limiting or waiving marital rights. The ability to understand the contract and the proper understanding of the contract are two distinct concepts.

Contracting Must Have Been Voluntary

A contract must be voluntary. Because premarital agreements often occur amid emotional circumstances, some individuals may refuse to marry if such agreements remain unsigned. Therefore, courts actively scrutinize whether the parties voluntarily enter into the premarital agreement, rather than being coerced or influenced by other factors. Neither party can waive the provision of voluntariness.

While Sections 4.006 and 4.105 of the Texas Family Code do not provide a definition for “voluntarily,” courts have typically interpreted it to refer to actions taken intentionally or by the free exercise of one’s will. Martin v. Martin, 287 S.W.3d 260 (Tex. App.–Dallas 2009, pet. denied);

What does involuntariness look like? Ultimately, it means an individual was coerced into signing it. Coercion may be through:

1. Fraud
2. Duress
3. Undue Influence or
4. Overreaching

Factors Considered When Determining if Involuntariness Existed

One court in Moore v. Moore, 383 S.W.3d 190 (Tex. App.–Dallas 2012, no pet. h.) considered when determining whether any evidence of involuntariness existed:

1. whether a party has had the advice of counsel
2. misrepresentations made in procuring the agreement
3. the amount of information provided, and
4. whether data has been withheld

Undue Influence

Undue influence means the individual is coerced into signing the contract by another’s unlawful threat. Because of that threat, the weaker party had no alternative but to sign the agreement.

When undue influence destroys voluntariness, the individual is deprived of any meaningful choice. The will of another effectively substituted their freedom of choice to decide whether to execute the agreement or not (usually the other party to the premarital agreement, but not always).

For instance, the parties’ relationship may involve a weaker individual emotionally and financially controlled by a dominant partner. Or an overbearing parent who desires the premarital agreement. Undue influence is always something to look for among those in a close relationship, such as:

1. Family
2. Friends
3. Coworkers and
4. Two people planning to spend married life together

Fairness is Needed

Texas Family Code Section 4.006 requires that for premarital agreements to be valid, they must be fair both procedurally and substantively. To satisfy procedural fairness, voluntariness is needed. With substantive justice, if the contract was unconscionable when signed, then it should be held invalid.

What does unconscionability mean in this context? An unconscionable agreement shocks the conscience or is expressly unconscionable, according to the Statute. The judge determines unconscionable as a question of law under section 4.006(c) under the Texas Family Code.

A valid premarital agreement is supported by fair and reasonable disclosure of both individuals’ property or financial obligations. Substantive unfairness may result if there is inadequate or nonexistent financial disclosure of assets and debts.

The most common situation of substantive unfairness involves a party who did not know, and could not have known, about the other’s finances. Without a property disclosure, the agreement may be unconscionable, lacking substantive fairness from the beginning under Section 4.006(2)(A) of the Texas Family Code. However, unlike voluntariness, a party can waive the right to fair disclosure and proper financial disclosure under Section 4.006(2)(B).

Steps to Prevent Arguments Against Enforcement of a Premarital Agreement

For these reasons, both parties must fully disclose all earnings, property, and financial obligations during a premarital agreement negotiation. If one spouse proves that the other hid an asset, a source of income, or a financial obligation, this will create an argument against the agreement’s enforcement. If the deal were based on inaccurate information in some way, this would prove an argument against enforcement.

Sometimes the lack of adequate time to review and consider information could support an argument that a fiancé could not reasonably have had sufficient knowledge of the property or financial obligations. This can be avoided by allowing for time to review all disclosure and the agreement.

If one party retains an attorney to draft the agreement, the other party must have adequate time and opportunity to hire an attorney to review the deal and provide legal advice.

In conclusion, understanding the validity and enforceability of a premarital agreement is essential when navigating a contested divorce or probate proceeding. A written agreement that meets legal requirements is crucial for protecting both parties’ interests. Whether it’s challenging provisions on spousal maintenance or addressing other aspects of the agreement, seeking professional legal guidance can ensure that your rights are protected and the agreement is upheld in court. Proper preparation and clarity at the outset can save time and stress during legal disputes down the line.

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Other Articles you may be interested in:

1. How to Have a Premarital Agreement Conversation
2. Misconceptions About Premarital Agreements
3. Who needs a Premarital Agreement?
4. Should I sign a Texas Premarital or Prenuptial Agreement?
5. Dower Contracts and a Texas Divorce
6. Can I sue my spouse’s mistress in Texas?
7. When is Cheating Considered Adultery in a Texas Divorce?
8. Six Things You Need to Know Before You File for Divorce in Texas
9. Texas Divorce Morality Clause: Be Careful What You Ask For
10. What Does Insupportability or No-Fault in a Texas Divorce Mean?

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Law Office of Bryan Fagan, PLLC | Spring Divorce Lawyers

The Law Office of Bryan Fagan, PLLC, routinely handles matters that affect children and families. If you have questions regarding divorce, it’s essential to speak with one of our Spring, TX Divorce Lawyers right away to protect your rights.

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