Is a prenuptial agreement signed the day of a wedding valid if one party was not represented by a lawyer and she claims the signing was under duress? Under N.J. law, a prenuptial agreement doesn’t have to be fair as long as it’s voluntary and there is full and fair disclosure of assets, income and financial obligations of each party.
The Story of a Billionaire’s Premarital Agreement
The parties were married for 25 years and one child was born of their marriage. Mike Fernandes, age 75, is the Chairman of MBF, a private healthcare enterprise; Constance is age 61, a real estate broker, a socialite and former healthcare CEO. Mike was previously married three times and Constance was married once.
The couple lived a lavish lifestyle in their 91 million dollar home in Coral Gables, Florida and travelled around the world in their private jet and yacht. During the marriage, Mike gave Constance 6 million dollars in jewelry, (including a 22 carat emerald ring), and 10 million dollars in investments.
The Premarital Agreement
The Premarital Agreement provided that Constance would receive $1,000,000 if the marriage lasted 10 years or more. The Agreement was signed by both parties and notarized.
Constance claims that the Agreement is invalid because she was not represented by an attorney and signed the document under duress the day of the wedding. She also claims that she did not review or understand the terms of the financial disclosure and the Agreement was unfair.
Mike argues that he discussed the Premarital Agreement with Constance six months before the wedding; that he gave her the Agreement two weeks before the wedding and that Constance said she would sign any document that he put in front of her. He also claims that Constance never wanted a lawyer, nor did she claim that she didn’t understand the Agreement. He emphasizes that Constance was a sophisticated and savvy business woman who was previously a CEO of a company and was accustomed to reviewing documents.
Mike also argued that she received significant benefits during the marriage, including substantial jewelry and investments, in addition to the $1,000,000 she will receive from the Prenuptial Agreement.
How would New Jersey treat this case?
1. Is a Premarital Agreement signed the day of the wedding enforceable?
It depends on the circumstances. Even though an Agreement may be signed the day of the wedding, it may not be under duress. In New Jersey there’s no strict timing rule which requires that an Agreement be signed within a fixed time period prior to the wedding. The party challenging a Prenuptial Agreement must prove, by clear and convincing evidence, that the Agreement was executed involuntarily. The Court will consider the following:
a) Did the party challenging the Premarital Agreement have counsel or waive counsel?
b) Did the parties discuss or negotiate the contents of the Agreement in advance of the wedding?
c) Was the Agreement presented to Constance in advance of the wedding?
Under N.J. law, Constance has the burden, by clear and convincing evidence, that the Agreement should be set aside.
2. Can Constance claim that the prenup is unfair because she will only receive $1,000,000 and jewelry worth $6,000,000 and $10,000,000 of investments?
Under N.J. law, fairness is not the test. She must prove her execution of the agreement was not voluntary, or the financial disclosure provided by Mike was not fair and full.
3. Can Constance keep the jewelry Mike gave her worth $6,000,000 and investments worth $10,000,000?
Yes – unless the prenup provided otherwise. If no prenup agreement existed, the gifts to Constance would be subject to equitable distribution. Since the prenup didn’t address gifts or investments, Constance will likely retain the jewelry and investments if the prenuptial agreement is enforced.
4. Can Constance claim that the agreement was invalid because she didn’t have counsel?
Yes, except if she waived the right to counsel in writing.
5. Can Constance claim she didn’t understand the document?
This will be a fact question for the court. It is unlikely that this would be a winning argument since she was a sophisticated business person.
6. Although Constance lived a high lifestyle during her 25 year marriage, will the court grant her alimony to continue her lifestyle?
No. If the Premarital Agreement is enforced, she will receive no alimony. She will be entitled to retain $6,000,000 of her jewelry and $10,000,000 of investments and $1,000,000 lump sum from the premarital agreement.
Under N.J. law, a prenuptial agreement doesn’t have to be fair as long as it’s voluntary and there is full and fair disclosure of assets, income and financial obligations of each party.
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