In the
charming romantic comedy, "Intolerable Cruelty," George Clooney plays a lawyer
who becomes famous for his hermetic pre-nuptial agreement, dubbed the "Massey
Pre-nup," after his character in the film, Miles Massey. A divorce lawyer to
the wealthy, fabulous, and comical, the Massy Pre-nup is sought after as the
ultimate problem solver, the uncontestable contract, all in all, the
billionaire's best friend. But remember, movies are fiction.
In
reality, there is no single landmark air-tight pre-nuptial agreement. Some
agreements may be better than others, and courts will look to whether or not
the terms of the agreement were fair upon both execution and enforcement in
many cases, making it difficult to accurately predict the results in any given
divorce situation. While the "Massey Pre-nup" is an easily understood fairy
tale, real-world pre-nuptial agreements are far more complex. Your best asset
is a working understanding of these sorts of contracts.
Many of us
think of pre-nuptial agreements with a combination of dread and reverence. You
may be the party trying to get your spouse-to-be to sign the feared document,
or you may be the less-moneyed romantic against whom the contract is to be
enforced in the event of a Waterloo.
Regardless of which role you play, you ought to know that a pre-nuptial
agreement, in its most basic form, is a contract between two people that
becomes effective upon marriage and enforceable upon divorce. The contracts
are generally intended to protect the "have" party, so if you are the less
fortunate member of the couple, be sure to be extra careful before you sign
anything.
Pre-nuptial
agreements are most useful in community property states, where any money earned
by either party during the marriage would normally be split 50/50 upon
divorce. The pre-nuptial agreement generally includes a provision by which the
"have not" party agrees to waive the presumptive 50/50 split of property earned
during the marriage.
In lieu of
half of the community marital property, the "have" spouse usually agrees to
give the "have not" spouse some fixed dollar amount, determined by whatever
factors and conditions the couple and their attorneys may conceive of during
the drafting process. It is worth noting that, up until rather recently,
California had rather lax knowing consent requirements, meaning the party
against whom the contract was to be enforced, the "have not" party, needed
little counseling and advice in order for the contract to be valid under the
law.
Any
student of community property is familiar with what is perhaps the most famous
of the knowing consent cases: the Sun Bonds story, a tragic drama in which
Barry Bond's former wife was left with next to nothing, seemingly due to
Barry's first class attorney in combination with Sun's third class English
language skills and lack of sufficient representation. In the years since this
case, California courts have created more stringent
rules regarding knowing consent, now requiring, among other things, translation
and independent representation where necessary. Both parties should have
independent counsel and both parties should understand the document itself
before signing.
Additionally,
the terms of the agreement should not be unconscionable. In other words, the
terms should not be so unreasonably unfair as to leave one party destitute. If
a court determines that such tribulation is the undeniable result of the
enforcement of the pre-nuptial agreement, it is not likely to enforce the
contract. The time, energy, and legal fees tied up in the agreement will have
been meaningless.
Of course,
all written agreements are subject to the basic rules governing contract agreements
between parties, so the agreement should meet the basic legal standards. But,
beyond these simple guidelines, pre-nuptial agreements may be as complex or as
simple as the parties and their representation desire. A court will always
review the agreement when it becomes enforceable, and some agreements will hold
up better in court than others. As to the hermetic Massey pre-nup, a
remarkably well-drawn pre-marital agreement is indeed possible, but pre-martial
agreements are case-by case documents and it is up to the lawyers and their
clients to formulate a contract that best suits the circumstance at hand.