Couples who have decided to marry enter into premarital agreements for a variety of reasons. However, when entering into the agreement, there are 4 elements that must be present to have a valid agreement.
Legal Capacity
You must possess the legal capacity to enter into a premarital agreement. This does not mean that if your decision to agree was unwise that you did not have the mental capacity to enter into the agreement. Legal Capacity speaks more to a mental illness or some type of mental defect or deterioration. The question of legal capacity asks if the party had the ability to understand the contract or agreement and not necessarily if they actually understood the contract. Therefor, “I didn’t understand what I was agreeing to” would likely not be a good argument to have a premarital agreement invalidated. It is important to seek the consultation of an attorney when entering into this type of agreement.
Voluntarily Enter into the Contract
When entering into a prenuptial agreement, it must be done so voluntarily. If you are being forced or coerced into entering into the agreement, then the agreement might not be valid. If, for example, the disadvantaged party to did not get legal advice or have the opportunity to do so, a court might rule that the agreement was not voluntarily entered into.
Full Financial Disclosure
When entering into a premarital agreement, one must have fully disclosed relevant financial information. This includes income, assets and debts. Since the purpose of a premarital agreement is to waive some marital rights, this cannot adequately be done if one is not fully informed of the full financial picture. However, parties to the agreement can decide to forgo some financial disclosure if this is voluntary and is in writing.
Conscionability
If a court finds that the agreement was unconscionable, it could determine that it is invalid. An unconscionable agreement is sometimes defined as one that is the result of a grossly unfair process and contains grossly unfair terms. This yet another reason is it essential to seek legal representation when entering into a premarital agreement.
