Can You Challenge a Prenuptial or Postnuptial Agreement in North Carolina?

According to multiple outlets, prenuptial agreements have become increasingly popular among marrying couples – particularly for members of the younger generations. As these agreements become more commonplace, it’s perhaps more important than ever for couples to get on the same page about how prenuptial and postnuptial agreements could impact their options in the event of a divorce.

While prenups and postnups are generally enforceable in North Carolina, there may be some options available to those looking to challenge or amend their agreements. Here’s an overview of what these agreements are, how they work and when it does (and does not) make sense to challenge them.

What is a prenuptial agreement?

A prenuptial agreement (or a “prenup” according to pop culture) is a kind of contract partners enter into prior to marriage to outline how certain financial matters will be handled in the event of death or divorce.

Couples often use prenuptial agreements to proactively address:

• Which kinds of property will be classified as marital or separate
• Whether spousal support (alimony) will be paid if the couple gets divorced
• How debts should be allocated between spouses
• How assets acquired during the marriage will be divvied up during divorce negotiations

Under North Carolina law, prenuptial agreements must be in writing and signed by both parties. They must also be entered into voluntarily, and may be unenforceable if involuntary or unconscionable under statutory standards. The goal of these agreements is generally to streamline the divorce process and reduce disputes over how assets will be divided and how each spouse will protect their financial future once their marriage has ended.

What is a postnuptial agreement?

A postnuptial agreement – as the name would suggest – is similar in purpose to a prenuptial agreement but is signed after a couple gets married rather than before. Couples sign postnups for all kinds of reasons, but we commonly see them thrown in the mix after major life events, in the wake of significant changes in a couple’s financial situation or following some kind of marital conflict. Postnuptial agreements can help tie up loose ends and clarify each spouse’s financial expectations as they move through their marriage.

What makes a prenup or postnup valid in North Carolina?

In order to be enforceable, North Carolina pre- and postnuptial agreements must meet specific criteria. In general, a valid prenuptial or postnuptial agreement must be:

1. Submitted in writing and signed by both spouses
2. Entered into voluntarily, i.e. without pressure or coercion
3. Based on full and fair disclosure of assets and debts
4. Fair and not unconscionable when signed

If one or more of these elements is missing, the agreement may be considered unenforceable and vulnerable to potential challenges. In order to ensure your agreement is valid and enforceable under North Carolina law, it’s important to work with an experienced lawyer who understands the standard requirements for these contracts and is ready to advocate for their client’s best interests.

What are some common reasons for challenging a prenup or postnup?

Sometimes, spouses who signed a pre or postnuptial agreement go on to question their agreement during a divorce. While these agreements are specifically meant to remove some of the nebulousness from divorce negotiations, there are certain scenarios in which a spouse may be within their rights to challenge the terms of their original contract.

Some possible reasons for challenging a prenuptial or postnuptial agreement include:

• Lack of voluntary consent: If one spouse felt pressured to sign a pre or postnuptial agreement or was unable to legally enter into a contract at the time of signing (due to age, intoxication or mental incapacity, for example), the agreement could be deemed involuntary and subsequently unenforceable.
• Insufficient financial disclosure: If one spouse failed to disclose significant assets or liabilities prior to signing, the agreement may be considered invalid.
• Unconscionability: If – after reviewing a challenged agreement – the court determines the pre or postnup was grossly one-sided in favor of one spouse, the agreement may be deemed invalid and unenforceable.
• Procedural problems: Missing signatures, improper execution or failure to meet other statutory requirements can all invalidate an agreement in the eyes of the court.

The court will look at all of these considerations when one party seeks to challenge their agreement during a divorce. While many prenuptial and postnuptial agreements ultimately go on to be enforced, it may be worthwhile to challenge an agreement if you feel it is fundamentally unfair or that you entered into it under duress or in the absence of accurate information.

Your divorce lawyer can help you take a closer look at any agreements you signed before or during your marriage and work with you to argue against its enforceability if the facts support a challenge under the law.

Final thoughts

Prenuptial and postnuptial agreements are meant to serve as effective planning tools and may help safeguard against hotly contested negotiations in the event of a divorce. In some cases, however, these agreements may fall short of preserving both parties’ best interests and subsequently be vulnerable to legal challenges.

In most cases, the best thing you can do is consult with an attorney when crafting your agreement. The second best thing you can do is work with an experienced lawyer during your divorce to ensure the terms of that agreement were reasonable and enforceable under the law.

At Epperson Law Group, PLLC, we understand how frustrating it can be to discover your pre- or postnuptial agreement is actually poorly-suited to preserve your interests during an already stressful divorce process. If you suspect your prenup or postnup was created under questionable circumstances or that it is unconscionably one-sided to favor your spouse, our team is standing by to help you understand your options.

Give us a call today or fill out our online contact form to schedule a free consultation with a member of our team, and let’s discuss whether you may be within your rights to challenge a prenuptial or postnuptial agreement during your divorce.