Prenuptial Contracts: Pratfalls, Pitfalls and Pitbulls


APPENDIX D
 
 

CHECKLISTS FOR ENFORCING (AND AVOIDING) PRENUPTIAL CONTRACTS DURING DISCOVERY AND AT TRIAL


 
 




Is the agreement the product of an arms-length transaction or an equal bargaining position?
 
 

1. What were and are the mental capacity, intelligence, education, and age of the parties?

2. What were and are the mental and physical health of the parties?

3. What experiences do the parties have in life generally, as well as in specific business or financial matters?

4. How many marriages has each party had? Has one party been through this before while this is a first marriage for the other?

5. What are the personality traits or characteristics of the parties? Who is the dominant force in the relationship and who is the weaker personality?
 
 
 
 

What was the status of the parties before the agreement was signed and at the time of enforcement?
 
  1. Was either party unemployed or regularly employed in an income-producing capacity?

2. Did either party demand, ask, volunteer, or suggest that one party abandon employment in whole or in part? Why?

3. Was either party receiving or paying alimony, spousal support, or child support?

4. Did either party demand, ask, volunteer, or suggest that alimony, spousal support, or child support be abandoned? Why?

5. Was either party in school?

6. Did either party demand, ask, volunteer, or suggest that education be abandoned? Why?

7. How long did the parties know each other before they signed the agreement and were married?

8. Did either of the parties abandon statutory or common law rights in former marriages or prior separation agreements because of the present relationship or possible marriage? What was given up and why?

9. Was there a history of physical or mental abuse before the agreement was requested and signed?

10. Which party asked for or proposed the idea of a prenuptial agreement?

11. Was the support of children from former marriages discussed?

12. Did the parties discuss the desire to have children of their own?

13. What were the initial reasons given by the person asking for the prenuptial agreement? How do they compare with the factors considered in the agreement?

14. When, where, and on what occasion did the parties discuss the agreement before it was signed?

15. Did the parties talk to anyone (aside from attorneys) about the contemplated or signed agreement, such as friends, relatives, business associates or partners, clergy, or counselors? When and where?

16. How were the household and daily living expenses handled? If there were two incomes, did one or both go into a joint or individual checking account and was one or both used for accumulating assets through investments or savings?

17. Were any IRA's set up before or after the agreement was signed?

18. Were any contributory pension or profit sharing plans set up before or after the agreement was signed?

19. Was there any property owned jointly before the agreement was signed? Was it later transferred to either party individually before or after the agreement was signed?

20. Was there a joint checking account before or after the agreement was signed?

21. Was oral or written promises (apart from the agreement) ever made before or after the agreement? (Consider birthday, anniversary, or Valentine's Day cards, love notes or apology letters, statements made at parties or statements in the nature of "Don't worry, if anything ever happens, I'll take care of you, no matter what the agreement says.")
 
 
 
 

Was there adequate legal representation for both parties?
 
  1. Did each party have a lawyer of his or her own choice?

2. How were the lawyers selected?

3. Did the lawyers share office space or were they located in the same building or on the same floor? If so, was that a coincidence?

4. Did the lawyers meet with both clients separately or together before the agreement was in draft or in final form?

5. Did each lawyer participate in the drafting of the agreement?

6. Was there more than one working draft? Were any copies marked up by the parties or the lawyers?

7. Are you endangering your client's rights by representing him or her now if you did so at the time of the agreement? If you have to testify, consider all your options in favor of your client's well-being.

8. Who paid the fees of both lawyers and from what checking accounts were the checks drawn?

9. If the lawyers rendered a written bill, was it in the name of one or both of the parties? Do time records show the name of one or both parties?

10. Did the drafting lawyers issue letters to the clients disclaiming the enforceability of the agreement or did they do so verbally? (Beware of the problem of privileged communication.)

11. Where and when was the agreement signed by the parties? Were the drafting lawyers present?

12. Who witnessed the signing of the agreement? Were there any notable emotions such as fear, joy, sadness, or anger?

13. Did both parties get signed copies of the agreement? When?

14. Were any transfers of property made by the parties' subsequent acts or deeds contrary to the agreement? Were the lawyers consulted?

15. Did the lawyers fully, completely, and openly explain to the parties every aspect of the agreement before it was signed? Did they explain the effects it would have on the parties' future rights?

16. Did the lawyers request and receive financial documents such as tax returns, financial statements, and stock valuations?
 
 
 
 
Was there legal consideration or adequate consideration for the waiver of statutory or common law rights in the agreement itself?
 
  1. What was received?

2. What was paid or promised?

3. When and where was it received or paid?

4. How was it received or paid?

5. What is the relationship between what was waived and what was received?

6. Were documents required to be executed after the agreement was signed, such as a will, deed, or trust? Were they actually drawn and executed?

7. Were documents required under the agreement executed and subsequently revoked such as a will, life insurance policy, assignment of pension benefits, or trust?

8. Were transfers of property or assets by or to a third contemplated? What was to be transferred, by whom, to whom, and when?
 
 
 
 

Was either party pressured to sign the agreement through undue influence, duress, or coercion?
 
  1. Was either party threatened in any way, such as illegal or social extortion or embarrassment?

2. Were there any threats or acts of withholding money if the agreement was not signed, or refusal to go to a "friendly" lawyer?

3. Was abandonment ever threatened?

4. Was physical abuse ever used or threatened?

5. Were mental or psychological pressures ever made or threatened?

6. Were there threats to cancel the wedding unless the agreement was signed?

7. When, where, and with whom did acts of coercion, duress, or undue influence take place?

8. Was financial nonsupport of children ever threatened or carried out for failure to sign the agreement?

9. Were sexual acts ever withheld or forced for failure to sign the agreement?
 
 
 
 

Was there full and complete disclosure before the agreement was signed?
 
  1. Was all financial information regarding income, expenses, assets, and liabilities attached to the agreement?

2. Did the income disclosures include averages over several years?

3. Were the assets properly valued, as they would be in a divorce disclosure? Were the assets valued at cost, market, or book, or any of the other valuation methods?

4. How do the current valuations compare to what they were before the agreement was signed?

5. Was the duty to inform rather than the right to know really explained to the parties?

6. Were any backup documents, such as old tax returns or financial statements, offered or shown to the parties or their lawyers? Did either party or lawyer choose not to examine them?

7. Were potential future assets or obligations disclosed?

8. Was life insurance, revocable or irrevocable, ever disclosed, discussed, or promised before or after the agreement was signed?

9. Were medical benefits ever abandoned through either the loss of employment or remarriage? Was the cost of the loss of benefits considered and disclosed before or after the agreement was signed?

10. Were pension benefits with or without the right of survivorship discussed and disclosed before or after the agreement was signed?

11. Were the rights and elections under social security law discussed and disclosed before or after the agreement was signed?

12. Were the federal and state income, estate, and gift tax consequences discussed and disclosed before or after the agreement was signed? (For example, if a joint tax return would save one party large sums of money each year, was that fact disclosed and negotiated in the waiver of certain rights? Was the potential tax liability in a joint return for taxes, interest, and penalties discussed and disclosed?)

13. Did either party divest themselves of property or property rights immediately before the agreement was signed, so that - in the nature of a fraudulent conveyance - it did not have to be disclosed?

14. Was the response to a request for backup documents cooperative, dilatory, or nonexistent?

15. Were the parties made aware of the existence or availability of any relevant documents such as partnership agreements, corporate returns and documents, trust agreements, trade agreements, or estate inventories?

16. Was either party ever made aware of assets not owned by the other party but in which he or she had a beneficial interest?

17. Did either party decline or neglect to pursue available opportunities to investigate the other party's income or assets?

18. Did the parties share the same account?


 
   

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