Flaherty v. Flaherty — What Happens When a Prenup is Signed Under Pressure

Prenuptial agreements are common tools for individuals seeking to define financial rights and obligations before marriage. But under Florida law, a prenup is only enforceable if it was entered into voluntarily, with fair disclosure, and without coercion or duress. Flaherty v. Flaherty shows how a court can invalidate a prenup when those safeguards break down, even if signed shortly before the wedding.

Background of the case 

In Flaherty, the parties planned to marry on July 13, 2002. The soon-to-be husband first raised the idea of a prenuptial agreement in early June 2002, and delivered a first draft later that month, less than a month before the wedding date. He also provided the prospective wife with the names of a few attorneys she could consult.

The wife did contact one attorney on July 2 (eleven days before the wedding). The attorney advised her not to sign the draft, warning that it would require her to waive rights to an elective share, release any interest in marital assets accumulated during the marriage, and waive entitlement to alimony or attorney fees in the event of a divorce. However, the wife did not hear back before the wedding.

The wedding took place in Las Vegas. The night before the ceremony, the husband handed the wife a “final draft” or the prenup and instructed her to sign it and get it notarized before the ceremony. She scrambled to locate a notary and ended up signing at around 2:00 a.m. the day of the wedding without reading the agreement. The final draft was nearly identical to the first.

After the marriage, the wife put away the executed agreement. Years later, when the couple divorced, she moved to invalidate the agreement, asserting it had been signed under duress without a meaningful opportunity to review or negotiate.

The appeal 

At the dissolution proceeding, the trial court reaffirmed the prenup’s validity. The court reasoned that the wife’s inaction for many years, combined with ordinary defenses like laches and ratification, operated to render the prenup enforceable. The court denied her motion to set it aside, concluding she had effectively ratified it.

On appeal, however, the Second District Court of Appeal reversed the ruling. The appellate court found that the circumstances under which the prenup was signed demonstrated coercion and duress, and that no valid meeting of the minds or voluntary, informed consent had occurred. Specifically: handing the wife the final agreement late the night before the wedding, insisting she sign immediately, not giving her a real opportunity to read or negotiate, and not following up on her attorney’s efforts all undermined the case for voluntariness.

Since the prenup was voidable as the product of coercion, the appellate court invalidated it.

Talk to a Largo, FL, Prenuptial Agreement Attorney Today

Need to draft a prenup before your wedding? Call the Largo family lawyers at Cairns Law, P.A., today to schedule an appointment, and learn more about how we can help.

Source:

law.justia.com/cases/florida/second-district-court-of-appeal/2013/2d12-3192.html