If you are considering drafting a prenuptial or postnuptial agreement, you need to have an attorney do the heavy lifting. Ultimately, your prenup could be tossed by the court if you cannot demonstrate that it was voluntarily entered into. One case in which a prenuptial agreement was invalidated is Justus v. Justus. In this case, the court saw fit to invalidate the prenuptial agreement on the grounds of “unconscionability.” In other words, the prenuptial agreement was so unfair that it “shocked the conscience” of the court.

Background of the case

In the case of Justus v. Justus, the prenuptial agreement stipulated that in the event of a divorce, the husband would pay the wife $500,000 in alimony, plus $500 per week during the divorce proceedings. At the time that the prenup was signed, the husband’s net worth was approximately $31 million. Circumstances, however, changed just before the divorce began. The husband suffered significant financial losses and later declared bankruptcy. His net worth at the time of the divorce was only $300,000. His wife, however, sought to enforce the original prenuptial agreement and receive her $500,000 alimony payment. The trial court initially ruled that the prenuptial agreement was unenforceable. The wife appealed. 

On appeal, the Indiana Court of Appeals ruled that the prenuptial agreement was “unconscionable and unenforceable” due to a significant change in the husband’s financial circumstances. The court ultimately reasoned that requiring the husband to pay $500,000 when he only had $300,000 would have left him without the means to support himself. 

Grounds for invalidating a prenuptial agreement in Indiana

There are several grounds for invalidating a prenuptial agreement in Indiana. These include:

• Lack of voluntary consent – Situations in which one party was coerced or pressured into signing the agreement can be used as a means to invalidate a prenuptial agreement. Arguments include duress, undue influence, or even signing the agreement too close to the wedding day. 
• Unconscionability – An agreement can be deemed unconscionable if it is so one-sided that it would “shock the conscience” of the court. 
• Inadequate disclosure – Both parties must fully disclose their finances, including debts and income, while the prenup is being drafted. 
• Illegal clauses – The prenup cannot include clauses that violate the law or are against public policy.
• Improper execution – The prenup must be in writing and properly executed. 
• Lack of independent legal advice – Each party should have their own lawyer. The absence of an attorney could void the agreement. 
• Mental incapacity – Both parties must be of sound mind when the agreement is signed. 

Talk to a Danville, Indiana, Family Law Attorney Today

Chris Arrington represents the interests of Danville residents who want to draft a prenuptial or postnuptial agreement. Call our office today to schedule an appointment, and we can begin discussing your next steps right away.