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Your feelings are probably all over the place right now, and that’s valid. Facing divorce is difficult enough. On top of that, you're dealing with a postnuptial agreement you never wanted to sign in the first place, and you have a tornado of stress brewing. You may have felt like you had no real control or choice over whether you signed. Now, you’re wondering if your spouse can even enforce a postnuptial agreement signed under pressure. Thankfully, California courts recognize pressure tactics and take steps to ensure they enforce only fairly reached postnuptial agreements.
When a couple is considering marriage, they may discuss the possibility of a prenuptial agreement. If they cannot agree, they can choose to walk away from the relationship. They don’t owe each other any legal duty. However, the landscape changes when the couple is already married and discusses a postnuptial agreement. At that point, the couple has already filed their marriage license and owes a fiduciary duty to each other under Family Code section 721. A fiduciary duty means that each person owes the other fair dealing and good faith when dealing with each other. It’s that duty that requires the court to treat the two agreements differently.
In California, married spouses can change how a property is characterized by writing it down and signing an agreement. California Family Code section 1500 authorizes that those changes can be done through a postnuptial agreement. It’s California Family Code sections 850 through 853 that require these agreements to be in writing.
The court will apply its presumption of undue influence if the postnuptial clearly benefits one spouse with an unfair advantage over the other. The spouse who has the postnuptial advantage must then present evidence to prove that the agreement was fair. They would need to show that both spouses entered into the postnuptial freely and with full understanding of what they were signing. It’s also helpful to show that both spouses were transparent about their financial situation, both assets and liabilities.
Simply challenging the postnuptial agreement isn’t enough to warrant the presumption. The California Court of Appeal confirmed this in In re Marriage of Burkle. The presumption of undue influence isn’t automatic when there’s mutual advantage for the spouses in the postnuptial. Not every postnuptial agreement is signed under pressure or unfair. After a challenge, the court may deem that both spouses received genuine mutual benefit and had independent legal counsel. These factors support the court enforcing the postnuptial agreement.
When your spouse sat you down and had “the conversation” about signing a postnuptial, it probably wasn’t fun. In fact, you could probably say it was awkward, uncomfortable, or even stressful. Despite being a conversation that you hated to have, these factors aren’t necessarily what the court considered undue influence. Undue influence goes beyond just being uncomfortable in the situation or unhappy you’re signing the agreement. The court weighs several factors when determining whether a postnuptial agreement was signed under pressure, including:
Full financial disclosure is a weighty factor in the decision because it has much larger implications than the others. It relates directly back to the fiduciary duty that the spouses owe each other. Not being forthcoming with finances by hiding assets or debts violates that fiduciary duty under Family Code section 721(b). That requirement is separate from the postnuptial enforcement conversation.
Challenging a postnuptial agreement typically happens later, often during a divorce, when one spouse asks the court to set the agreement aside. If the agreement clearly favors the other spouse, the court will look to the other spouse to prove that it was fair. It’s important to clearly show how the postnuptial unfairly favored the other spouse in the challenge to trigger this presumption. An attorney can review the postnuptial agreement and the circumstances around you signing it. They can assist with preparing a challenge to directly address the unfairness.
Don’t assume that because you signed a postnuptial agreement, you will be forced to comply with it. You may be able to ask the court to set the document aside if you signed a postnuptial agreement under pressure. You should never assume that it’s too late to challenge the agreement without consulting with an attorney.
You may have felt pressured and powerless when you signed your postnuptial agreement. That doesn’t mean the court will automatically enforce it now that you are facing divorce. You aren’t alone, and you aren’t the only one this situation has happened to. At ADZ Law, our understanding attorneys will review your agreement and the circumstances surrounding your signing it. Schedule a consultation online or call 650-458-2300 to discuss your legal options if you believe you signed a postnuptial agreement under pressure in California.
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