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Pre-Nuptial Agreements In Massachusetts

A recent Massachusetts Supreme Judicial Court decision has further clarified the law regarding the enforceability of pre-nuptial agreements.  

A pre-nuptial agreement can be entered into by prospective spouses prior to marriage, to establish their respective property and other financial rights, particularly in the event of subsequent divorce. These agreements are often made prior to second marriages, and marriages where one of the parties is much wealthier than the other.

In the Austin v. Austin case, a wealthy businessman married a department store employee with a high school education, after persuading her to sign a pre-nuptial agreement. The agreement provided for a waiver of alimony. Twelve years later, and after having one child, they divorced. The Probate Court judgment in the divorce case awarded to the wife the marital home worth $1,275,000, $525,000 in cash, $500 per week child support, and $1000 per week alimony.

Husband appealed only the alimony award. He argued that the wife had waived alimony in the pre-nuptial agreement, and that her waiver should be enforced. The Supreme Judicial Court agreed with the husband, and vacated the Probate Court Judge’s judgment which awarded the wife alimony. The SJC’s analysis was as follows:

First, the agreement was fair and reasonable at the time it was signed. The Court noted that the wife’s attorney drafted the final agreement, that the wife was not coerced into signing, that the wife was familiar with her rights as to property division and alimony due to a prior divorce, and that the husband had fairly disclosed his assets and income. The Court also noted that the agreement, while waiving alimony, did provide that appreciation in the value of the marital home, and other assets earned or acquired during the marriage, would be equitably divided between the parties at the time of divorce.

Second, the agreement was fair and reasonable at the time of divorce. Although the wife received less than she might have in the absence of a pre-nuptial agreement, she was not left “without sufficient property, maintenance, or appropriate employment to support herself.”

Pre-nuptial agreements must be carefully drafted to be enforceable.

August 26, 2006

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