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Challenging prenuptial agreements for high-net-worth couples

On Behalf of | Sep 26, 2024 | Family Law |

Prenuptial agreements are often used by high-net-worth couples to protect their assets in case of divorce. While these agreements can provide financial security, they are not always guaranteed to hold up in court. Under certain circumstances, one party can challenge prenuptial agreements and even overturn them.

Lack of full disclosure

One party can challenge a prenuptial agreement if there is a lack of financial disclosure. When creating the agreement, both parties must provide a complete and honest account of their financial status. If one spouse hides significant assets or fails to disclose their full financial picture, the agreement may be invalid. 

Coercion or pressure

Both parties must sign the prenuptial agreements willingly and without pressure. For a prenuptial agreement to be valid, both parties need to sign it voluntarily and without any form of coercion.

Unfair or one-sided terms

Courts may also overturn a prenuptial agreement if the terms are extremely unfair to one spouse. The court may rule the agreement unconscionable if it favors one spouse and leaves the other with little to no financial protection. 

Improper legal process

For a prenuptial agreement to be valid, it must follow proper legal procedures. Both spouses should have independent legal representation to ensure the agreement is fair. If one spouse did not have access to legal counsel or if the agreement was poorly drafted, it’s possible to challenge the validity in court. 

Prenuptial agreements must be valid

To withstand challenges, prenuptial agreements must meet specific legal standards and be free from any undue influence. Family law courts closely examine the fairness of terms and the transparency of financial disclosure. A well-structured agreement is more likely to hold up if properly handled from the start.

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