Divorce Articles

More Divorce Information

Using Postnuptial Agreements in Massachusetts

Celebrity prenuptial agreements certainly make headlines. Kim Kardashian reportedly will keep all her premarital assets as well as the income she earned during her brief marriage to Kris Humphries. Paul McCartney recently turned down a prenuptial agreement before tying the knot with Nancy Shevell. Couples have become more prudent about setting guidelines for the division of assets just in case the relationship does not work out.

Married couples are also a part of this trend. Postnuptial agreements are also being used more frequently as couples seek to prepare for worst-case scenarios. Like prenuptial agreements, postnups are written agreements entered into between couples, only postnuptial agreements are filed after a marriage instead of before. Couples can create postnuptial agreements with the assistance of a Massachusetts family law attorney to avoid disputes regarding property ownership and division of financial assets in the event of divorce.

Court Interpretation of Postnuptial Agreements

The Massachusetts Supreme Court has upheld the validity and effect of postnuptial agreements. In Ansin v. Craven-Ansin the court ruled on whether a written agreement between married parties was contrary to public policy, and whether such a contract was enforceable during divorce.

In 2004, Kenneth Ansin and Cheryl Craven-Ansin created a postnuptial agreement through their respective attorneys that would "settle all rights and obligations arising from their marital relationship." The couple agreed to a number of provisions, including:

  • That they had sought independent counsel in creating the agreement
  • That they were aware of their rights under Massachusetts law
  • That they entered into the agreement freely and voluntarily
  • That they were aware of each other's income, and that full disclosures had been made

The couple also agreed that Craven-Ansin would release "any and all interest she now has or ever may have" in Ansin's real estate interests and other marital assets. Mr. Ansin agreed to give her $5 million, as well as thirty percent of the appreciation of all marital property held by the couple from the time of the agreement to the time of the divorce.

Mr. Ansin filed for divorce in 2006, and sought to enforce the terms of the agreement. Ms. Craven-Ansin argued that the postnup was not valid as a matter of law because she was coerced into signing it, and that such agreements are contrary to public policy. The trial court disagreed. It found that the agreement was not a product of fraud, that Mr. Ansin had fully disclosed his assets and that the terms were fair and reasonable.

Upon direct appellate review, the Supreme Court also rejected her claims. It also held that future postnuptial agreements must be scrutinized to determine whether each party had their own legal counsel, whether there was fraud or coercion in obtaining the agreement, whether all assets were fully disclosed by both parties, whether each spouse knowingly and explicitly waived their right to a judicial equitable division of assets, and whether the terms of the agreement were fair and reasonable.

Other Uses for Postnups

As discussed before, a postnup may help define each party's financial responsibilities within the marriage, and establish boundaries over additional assets acquired during the marriage. For example, assets acquired by a party through gift or inheritance are commonly considered non-marital property. However, a party may choose to use part of their inherited assets for the couples' benefit (i.e. using funds to purchase a home or a new business). When this happens, the commingling of funds may create a right to the entire inheritance. A post-nuptial agreement can clearly delineate what assets may be considered marital property.

Can a Postnup Save a Marriage?

A postnup may help save a marriage where one or both spouses is stressed by the uncertainty of how assets would be divided in the event of a divorce. Moreover, grievances can be aired and mutually acceptable solutions can be reached regarding finances.

Ultimately, postnuptial agreements can help parties resolve contentious financial issues that can potentially end a marriage. Advice from independent counsel helps parties make informed decisions about the future, whether they stay married or not.

The preceding is not intended to be legal advice. If you have questions about postnuptial agreements in Massachusetts, an experienced family law attorney can help.

Read More - Click To Expand Text