Will Petrakis case spell the end of New York prenups?

April 16, 2013 (Press-News.org) Will Petrakis case spell the end of New York prenups?

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The Brooklyn Appellate Court recently affirmed a lower court decision tossing out a prenuptial agreement between a millionaire real estate mogul and his soon-to-be ex-wife. The court found that the agreement was both "fraudulently induced" and coerced because of the circumstances of the signing of the document, which included:
-Presenting the agreement to the wife for the first time only four days before the wedding
-The wife's parents had paid $40,000 for the reception and she says she felt pressured to go through with it
-No attorney represented the wife
-The husband allegedly threatened to back out of the wedding unless the prenup was signed
-The husband told the wife repeatedly during the marriage that he would "tear up" the prenup once the couple had children, but never did

Essentially, the appellate panel agreed with the lower court's view that the totality of the circumstances surrounding the drafting and signing of the agreement are such that to enforce it would be patently unfair to the wife. No announcement has been made as to whether Petrakis will pursue further legal action about the enforceability or validity of the agreement.
When is a prenup a good idea?

There is no way to tell yet if the Petrakis case will be precedential and affect other prenuptial agreements signed by New York couples. In the meantime, though, they are still extremely beneficial for some couples, including those:
-Who have a significant wealth disparity between them
-Where one party is expecting an inheritance
-Where one party has family heirlooms that need to be protected
-Who have children from a previous marriage/relationship
-Where one party owns a business (or a substantial interest in a business)
-Where the care of a third party (like special needs children, vulnerable adults, elderly parents) is an issue
-Where one party is in the process of earning an advanced degree or training for a lucrative career field

Enforceability

Again, there is no way yet to tell if the Petrakis case will have an impact on future prenuptial agreements around the state, but there are certain things that can affect whether a prenup will be considered valid and enforceable. For example, prenups that have specific provisions that involve uncommon actions like quitting smoking or losing weight are often struck down (the agreement might be enforceable in part, but those types of commands will usually not be enforced). Prenups are also likely to be unenforceable if:
-They contain provisions that are in violation of public policy, like requiring behavior that is illegal, racist or sexist
-They were fraudulently induced by false promises or incomplete information
-They were coerced (i.e., one party refuses to go through with the marriage unless an agreement is signed)
-The agreement attempts to contract away rights that cannot be taken away, like the right to receive child support or that custody will automatically flow with one parent in the event of a divorce

Are you considering signing a prenuptial agreement before your New York marriage? Are you divorcingnow and have a prenup that you would like enforced (or invalidated)? Want to learn more about how a prenup could protect your assets? If you answered yes to any of these questions, consult an experienced family law attorney in your area to learn more about the proper drafting and use of prenuptial agreements.