By Susan Lawrence
A unanimous opinion issued by the New Hampshire State Supreme Court found post-nuptial agreements are valid in the state. While a pre-nuptial agreement is signed before a marriage, a post-nuptial agreement may be signed at any time during the marriage, before a couple has separated. Both types of agreements address how certain details will be handled in the event of a divorce or upon the death of one spouse.
The case before the supreme court[11] involved Richard and Josephine Wilber, a couple who had been married for nearly 50 years. In March 2007, they signed a post-nuptial agreement. Under the agreement, Richard signed over property he owned in Maryland to Josephine. In return, she allowed him to live on the property until he died or chose not to live there anymore. Richard continued as the exclusive owner of his property in New Hampshire. Per the agreement, neither could seek anything further from the other spouse while they were alive or after they died.
On October 18, 2010, Richard passed away and had a valid will. Per their post-nuptial agreement, Richard left nothing to Josephine in his will. At the time of his death, Richard was a resident of Maryland. The executor of his estate filed papers with the Nashua Probate Division to distribute Richard’s property in New Hampshire. (On July 1, 2011, New Hampshire consolidated the probate courts into the circuit courts. This case is now under the jurisdiction of the family division of the Ninth Circuit Court.)
In December 2010, Josephine filed a request with the probate court in New Hampshire. She sought to override their post-nuptial agreement, and Richard’s will, to receive the amount she would otherwise be entitled to, as the surviving spouse, under the law. Josephine died March 12, 2011, but the executors continued the legal battle on behalf of the estates.
The probate court sided with Josephine’s estate, finding the post-nuptial agreement was not enforceable in the state of New Hampshire. Richard’s estate appealed the decision to the supreme court saying the agreement was valid. Josephine’s estate argued New Hampshire doesn’t recognize post-nuptial agreements as being legally valid. Her estate also argued the trial court properly found the agreement to be unenforceable because it was fundamentally unfair.
The supreme court noted New Hampshire law does not expressly permit or prohibit married couples from entering into post-nuptial agreements. Under common law rule, spouses were not able enter into contracts with each other. However, modern law allows spouses to enter into contracts with each other if those contracts are formed properly and are fair. Courts in several other states have also found post-nuptial agreements to be legally valid. The court's opinion explained:
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Post-nuptial agreements give married persons the flexibility to dispose of their property and establish their rights and obligations upon death or marital dissolution...We hold, therefore, that post-nuptial agreements may be enforced in New Hampshire.[11][5]
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The opinion also addressed the specific post-nuptial agreement between Josephine and Richard. Josephine argued her request filed with the probate court did not violate the terms of the agreement because she did not make any claims against Richard's property. However, the supreme court found her request was a claim that violated the terms of their post-nuptial agreement.
The court also addressed the issue of whether the post-nuptial agreement was formed correctly and was fair to both parties. Josephine’s estate had the burden to show the agreement was unfair but offered no evidence. Richard’s son testified Josephine was the one who requested the agreement be drawn up, and she also specified the terms.
Josephine’s estate argued Richard invalidated the agreement because he also failed to abide by the terms. After transferring the Maryland property to her, Richard specified terms not included in their original agreement. He made her promise not to divorce him or expect him to make repairs to the Maryland property. However, since she allowed him to transfer to property to her, the court found she was also obligated to comply with the agreement. |