Are Prenuptial Agreements Affected by Changed Circumstances
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Are Prenuptial Agreements Affected by Changed Circumstances?
Overview
Prenuptial agreements are designed to be enforceable contracts between individuals planning to marry, offering them future protection with the expectation that the terms will be upheld. However, these agreements can be challenged, especially when circumstances change significantly.
Understanding the Legal Context
Prenuptial agreements differ from standard contracts for goods or services. In New Jersey, the Supreme Court's decision in Lepis v. Lepis highlights how family support provisions can be endlessly modified due to significant, unforeseen changes in circumstances.
Key Considerations
1. Validity Presumption: Properly drafted prenuptial agreements are initially presumed valid. This means that both parties were represented by independent counsel, there was no coercion, financial disclosures were adequate, and the agreement was fair.
2. Burden of Proof: If one party seeks to avoid enforcement, they must prove the agreement is unconscionable. Otherwise, it should be upheld.
3. Unconscionability Standard: An agreement is not considered unconscionable unless its enforcement results in a significantly lower standard of living than before marriage.
4. Anti-Lepis Clauses: After the Lepis case, attorneys began including anti-Lepis clauses in agreements to limit or prevent alimony liabilities. However, the enforceability of these clauses can vary and sometimes they are modified despite intentions.
5. Case Precedents:
- Marchall v. Marchall suggested that prenuptial agreements could be modified due to changed circumstances, paralleling property settlement agreements. This view is not legally binding since it was only a Trial Court decision.
- Pacellii v. Pacelli involved a mid-nuptial agreement rejected by the court because it was deemed unfair. The courts recognized that the dynamics of a mid-marriage context differ from those of prenuptial agreements.
Conclusion
Prenuptial agreements, when executed without coercion or duress and in compliance with the Uniform Premarital Agreement Act, should not be easily modified by the Lepis criteria. They should only be amended under the strict unconscionability standard originally applied in Schiff v. Schiff. It appears that, in some cases, the traditional approaches remain the most effective.
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