A HEARING IS NECESSARY TO DETERMINE WHETHER A POSTNUPTIAL AGREEMENT IS UNCONSCIONABLE, CRITERIA EXPLAINED.
The Second Determined a hearing was necessary to determine whether a postnuptial agreement, which appeared to strip the wife of her assets, was unconscionable. The court explained the relevant law:
Postnuptial agreements are contracts which require consideration … . Although postnuptial agreements are generally subject to ordinary principles of contract law … , the parties, as husband and wife, have a fiduciary relationship to each other … .To warrant equity’s intervention, no actual fraud need be shown, for relief will be granted if the settlement is manifestly unfair to a spouse because of the other’s overreaching … . A motion to set aside an agreement between spouses may be denied without a hearing if the agreement is fair on its face… .
Here, it cannot be said that the agreement is fair on its face. It appears from the record that the defendant has received no benefit from the agreement. It also appears that she relinquished all assets of the marriage, along with her inheritance rights and right to spousal support. Where an agreement appears to be so one-sided and unfair that no rational person exercising common sense would make it, and no fair and honest person would accept it, there should be a hearing to determine whether the agreement is unconscionable in substance … . Further, the circumstances under which the agreement was executed must be examined … A reviewing court examining a challenge to a postnuptial agreement will view the agreement in its entirety and under the totality of the circumstances… . Without a hearing to determine the totality of the circumstances, including the extent of the parties’ assets, and the circumstances surrounding the execution of the agreement, it cannot be determined on this record whether equity should intervene to invalidate the parties’ agreement. Barclay v Barclay, 2017 NY Slip Op 04414, 2nd Dept 6-7-17
FAMILY LAW (POSTNUPTIAL AGREEMENT, A HEARING IS NECESSARY TO DETERMINE WHETHER A POSTNUPTIAL AGREEMENT IS UNCONSCIONABLE, CRITERIA EXPLAINED)/CONTRACT LAW (FAMILY LAW, POSTNUPTIAL AGREEMENT, A HEARING IS NECESSARY TO DETERMINE WHETHER A POSTNUPTIAL AGREEMENT IS UNCONSCIONABLE, CRITERIA EXPLAINED)/POSTNUPTIAL AGREEMENT (UNCONSCIONABLE, A HEARING IS NECESSARY TO DETERMINE WHETHER A POSTNUPTIAL AGREEMENT IS UNCONSCIONABLE, CRITERIA EXPLAINED)