09 Jan Reconciliation agreements: A potential safeguard when there is no prenuptial agreement
Many people enter into prenuptial agreements before a marriage to establish clear financial boundaries and provide protections. While it may be emotionally challenging, such agreements are crucial for ensuring transparency and avoiding future disputes. This is especially true in cases where one party has substantial premarital assets or debts, responsibilities for an ex-spouse, children from prior relationships, an ongoing business or family assets.
Some people intend to enter into a prenuptial agreement but, for various reasons—such as time constraints, fear of initiating difficult conversations, or a lack of understanding of its importance—they do not finalize it before the wedding.
This creates a challenge in New Jersey, where “post-nuptial agreements” or “mid-marriage agreements” are generally disfavored and often not enforced by courts. The underlying reason is that the consideration for a prenuptial agreement is the marriage itself taking place; no one can force one person to marry another. However, after the marriage, this consideration no longer applies, and courts may presume a party was coerced into signing a post-nuptial agreement, leading to the invalidation of these agreements.
Although prenuptial agreements can feel emotionally daunting—effectively negotiating a divorce while planning a lifetime together—addressing these matters before the wedding is critical. That said, if a prenuptial agreement was not executed, all hope is not lost.
In New Jersey, couples may turn to “reconciliation agreements.” While not commonly used, these agreements can provide an alternative path for couples who did not establish a prenuptial agreement before marriage.
How Can Enforceable Reconciliation Agreements Be Made?
For a reconciliation agreement to hold up in court, there must be a legitimate basis for its creation. Specifically, it requires demonstrating that the consideration that no longer exists after marriage takes place has been replaced by a new, valid reason for the agreement. But how can this be achieved?
Valid reasons for a reconciliation agreement might include establishing that the marriage has irretrievably broken down, which is typically the most effective way to create enforceability. If the couple has separated for an extended period, if there is domestic violence or if one party has filed a Complaint for Divorce, these situations can provide the necessary consideration. In these cases, the marriage is effectively over, and the consideration for reconciliation becomes clear: the continuation of the marriage since no one can be compelled to remain married.
Why Are Reconciliation Agreements Worth Considering?
Reconciliation agreements may include provisions addressing the division of property, spousal support and any other financial or personal matters that might arise in the event of future disputes.
While it is ideal to enter into a prenuptial agreement before marriage, reconciliation agreements can offer a second chance for financial clarity and fairness. For couples who find themselves at a crossroads, these agreements can provide a framework for moving forward together—with mutual respect and understanding.
Key Takeaways:
· Plan Ahead: Whenever possible, ensure you or someone you care about enters into a prenuptial agreement before marriage. A well-drafted agreement that complies with New Jersey law can save significant emotional and financial turmoil down the line.
· Explore Options: If a prenuptial agreement was not executed, consider whether a reconciliation agreement may be a viable solution in your circumstances.
These agreements, when properly negotiated, prepared and executed, can provide a safeguard and a sense of control during challenging times.
Marriage is a partnership, and proactively addressing its potential challenges—whether through a prenuptial agreement or a reconciliation agreement—can build a stronger foundation for long-term success and mutual trust.
David S. Carton, is a Partner and the Co-Chair of the Matrimonial and Family Law practice group at Mandelbaum Barrett PC in Roseland, NJ. Certified by the Supreme Court of New Jersey as a Matrimonial Law Attorney, David represents clients in all aspects of Family Law, including prenuptial agreements, divorce, dissolution of civil unions, domestic violence, custody, parenting time, child support, alimony, issues between same sex and non-married couples and division of assets and liabilities. Contact him at .
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