A prenuptial agreement, or “prenup,” is a legal contract a couple may enter into before marriage. It identifies how assets, debts, and support payments will be handled if the marriage ends and can be used to circumvent the application of state property division laws.

While a prenuptial agreement is a valuable tool that can be used to protect the interests of both spouses, there are situations in which Wisconsin courts will find a prenuptial agreement is invalid and unenforceable. Anyone considering a prenuptial agreement should understand these circumstances. The family law attorneys at Muter Law Office can explain how a prenuptial agreement might be beneficial and prepare a legally binding contract that will withstand court scrutiny.

Understanding Prenuptial Agreements

In Wisconsin, prenuptial agreements are known as “marital property agreements.” They are signed before marriage and clarify the division of assets, spousal support, inheritance, and other financial concerns in the event the marriage ends.

When Are Prenups Unenforceable?

For a Wisconsin prenup to be enforceable, the agreement must be equitable for both parties. The enforceability of a marital property agreement can be contested on several grounds.

Coercion or Lack of Legal Representation

For a marital property agreement to be enforceable, both parties must voluntarily agree to its terms and must have the opportunity to consult with legal counsel before signing to ensure they fully understand the impact of the agreement and how it might affect their financial rights in the future. A marital property agreement could be found invalid and unenforceable if one party was coerced into signing it or did not have legal representation prior to signing. For example, a marital property agreement could be unenforceable if it was presented shortly before the wedding and one party did not have the opportunity to consult with legal counsel before signing.

Fraud or Misrepresentation

A marital property agreement must be based on transparency and a full and fair disclosure of all relevant financial information. Each spouse should be aware of the other spouse’s income, assets, and debts to ensure they each understand the financial impact of the decision. The agreement could be unenforceable if one spouse failed to disclose income, property, debts, or business interests before signing.

Unconscionability

A marital property agreement that is unethical or extremely unfair to one party could be unenforceable. A marital property agreement that gives one spouse the vast majority of the couple’s assets or would leave the other spouse with limited financial resources could be found to be unconscionable and unenforceable.

Child Support or Child Custody

Premarital agreements that address child support or child custody are strictly unenforceable. If a premarital agreement addresses these issues, the court could decide to invalidate the clause addressing them while enforcing other aspects of the agreement.

How to Challenge a Prenup in Wisconsin

Marital property agreements are presumed to be enforceable unless proven otherwise. This means the spouse seeking to challenge a prenup must prove it is unenforceable.

Challenging a marital property agreement is typically part of the divorce process. The spouse wishing to challenge the marital property agreement must present evidence to prove one of the reasons that would make the agreement unenforceable.

When evaluating the enforceability of marital property agreements, Wisconsin courts apply a three-part test that applies both at the time the agreement was drafted and at the time of divorce. The three elements Wisconsin courts consider are:

1. Whether the financial disclosure was fair and reasonable;
2. Whether the agreement was freely and voluntarily made; and
3. The substantive fairness of the terms of the agreement.

How a Family Law Attorney at Muter Law Office Can Help

Whether you are considering a prenuptial agreement before marriage or wish to challenge one as part of a divorce, the family law attorneys at Muter Law Office can explain your rights and represent you in court to ensure your interests are protected.

Contact Muter Law Office Today

Contact the Muter Law Office today to schedule a free and confidential appointment to discuss your situation and how we can assist you.