General Notes on Antenuptial Agreements:
“Significant enforceability problems,” large variation among the states; but it gives the judge a starting point
Uniform Marital Property Act lists in the factors a judge takes into consideration when dividing property says “Any contract the spouses entered in to” just considered one factor, so it can be set aside by judge
Mass. very far towards strictly enforcement prenuptial contracts (providing that certain basic precautions are taken)
To make sure that prenup is enforceable, must ensure:
Note: They are rare in the U.S.
Except when the two spouses are older, have grown children (contract out of inheritance rights)
Usually used with second or third marriages, children from former marriages
DeMatteo v. DeMatteo
Mass Sup. Ct. (2002) (S-3 p. 107)
Rule: “Fair and Reasonable” in the language of antenuptial agreements shall mean an agreement does not need to approximate alimony and property division that would be made in court without the agreement, but rather, the agreement can not essentially strip the contesting party of substantially all marital interests. Even if one sided, and even if the contesting party has a lower standard of living after the divorce than during the marriage.
Facts: Joe quite wealthy, wife Susan wasn’t. Pre-nup: Her lawyer negotiated with his lawyer, and they came to an agreement, and they both had it read to them, while on video, and they agreed: she would get a $35k salary with costs of living adjustments, the house, her car, life insurance and health insurance until she married again, and half the property bought jointly during marriage, and waived the right to go after more. When it came time to get a divorce, she tried to say the prenup was unenforceable because it was not “fair and reasonable.” Trial Court held in favor of wife.
Holding: Supreme Court calls bullshit on her. The trial judge had wrongly applied a standard for “separation agreements” to an “antenuptial agreement.” They are agreements that have completely different purposes, and to invalidate the antenuptial agreement because it did not meet the standard of a separation agreement would make it meaningless. Simply because a judge would give the contesting party more property interests under law without an antenuptial agreement does not make that antenuptial agreement invalid.
G. Non-Marital Cohabitants, Civil Unions Carlson v. Olson
Sup. Ct. Minnesota (1977) (S-3 p. 121): Inferring marriage due to equity
Rule: While cohabitating partners who don’t marry technically are separate persons, equity requires that their actions be viewed as though they were married people, and thus their actions towards one another in the husbandly or wifely roles should not be considered as monetary investments in their property.
Facts: Laura Carlson and Oral Olson were cohabitating for 21 years, never married, raised a son, bought a house, but held themselves out as married. Oral has basically paid for the entire house and improvements. Minnesota abolished common law marriage in 1941. Laura brought the action to partition their real and personal property.
Holding: Split the property 50-50. The guy can’t claim after 21 years of saying they are husband and wife, raising a kid, and even buying their house as husband and wife that his contributions to the ownership of the property were simply for him.
Marvin v. Marvin
CA Sup. Ct. (1976) (S-3 p. 125): Possibility of implied-in-fact marriage contract
Rule: The fact that a man and woman live together without marriage and engage in a sexual relationship does not itself invalidate agreements between them regarding earnings, property, or expenses; unmarried couples may organize their property however they choose; only if the consideration of the agreement is meretricious (prostitutional) sex will the agreement not be enforced.
Facts: Michelle (P) and Lee (D) held themselves out as married for 7 years, but were not. Michelle agreed to be a companion, homemaker, housekeeper, and cook, giving up her career as an entertainer. All real property and personal property was earned in the name of Lee. But in 1971, he kicked her to the curb. Now what the fuck do we do about it?
Holding: In CA, you can’t use the Family Law Act to distribute property among nonmarried couples. The court will enforce contracts between nonmarried couples unless it is explicit that the consideration of the contract is just sex (i.e., prostitution). When there is no contract, courts will try to determine if there was an implied contract, agreement of partnership, or other tacit understanding between the parties. Quantum meruit or equitable remedies such as constructive or resulting trusts are good too when warranted by the facts. Thus, in this case, the court says there was a contract, and the district court must have a trial on the merits to determine a just distribution of property.
Vermont Civil Union Statute
§1202 - To get a civil union, you must be 1) not in a marriage or civil union already and 2) the same sex of the other party
§1204 - civil unions get all the same benefits, protections, and responsibilities under law in property, inheritance, ownership, divorce, and everything whatsoever as married couples, including: (22) “family landowner rights to fish and hunt.”
IV. Purchase and Rental of Real Estate
A. Lawyer-Made Law (S-4 pp. 1-3)
The forms used in these parties are all “lawyer-made” law, revised over centuries.
If they are made validly, the documents become “the law” for the parties to them
Contracts
Estate planning
Trusts
Forms
Different meaning when talking about commercial real estate
No great disparities of bargaining power, but intense bargaining
Represent accumulated experience about what works and what does not
Must comply with statutory/common law
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