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Question 1
Spencer and Katherine want to get married; however, since they both have been married before and have substantial assets, they think they should prepare some type of premarital agreement. Before the wedding, they come to an oral agreement as to how their property should be distributed upon death or divorce. Due to all the work required to plan the wedding, they did not have a chance to put their wishes in writing. Despite this oversight, the agreement is still valid.
Correct
Incorrect!
Correct There are three basic requirements for a prenuptial agreement to be valid. One of the requirements is that the agreement must comply with the Statute of Frauds, namely the agreement must be in writing. Here, Spencer and Katherine made an oral agreement; however, since it was not reduced to writing, it would not be valid.
Incorrect! There are three basic requirements for a prenuptial agreement to be valid. One of the requirements is that the agreement must comply with the Statute of Frauds, namely the agreement must be in writing. Here, Spencer and Katherine made an oral agreement; however, since it was not reduced to writing, it would not be valid.
Question 2
Gregory and Stephanie were married six months ago. At the time they signed a prenuptial agreement. Stephanie was forthright with her disclosure of property she owned. Gregory was not so forthcoming with information. In fact, he failed to disclose that he owned property in Bermuda, valued at $1.3 million. When they broke up a few days shy of their first anniversary, Stephanie finally found out about the hidden property. Under what grounds can the court invalidate the agreement?
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Incorrect!
Correct
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Correct At the heart of any valid premarital agreement is the requirement of disclosure. Without adequate disclosure it is difficult to create a binding contract, especially since material facts have been concealed. Here, Gregory did not disclose material information about his property holdings, thereby giving the court grounds to disregard the agreement.
Incorrect! At the heart of any valid premarital agreement is the requirement of disclosure. Without adequate disclosure it is difficult to create a binding contract, especially since material facts have been concealed. Here, Gregory did not disclose material information about his property holdings, thereby giving the court grounds to disregard the agreement.
Correct
Incorrect!
Question 3
Josephine and Justin are scheduled to get married in two days. The night before the wedding, Justin presented Josephine with a premarital agreement for her signature. Hastily, Josephine signed the agreement so she could go back to preparing for the wedding. She was not permitted to keep a copy of the agreement after she signed it. Later, if Josephine wants to have the agreement invalidated, what would be her best argument?
Correct One key to creating an enforceable agreement is that it be devoid of duress. The most common example of duress is applying pressure to someone at the last minute to sign an agreement. By waiting until the last minute, the person does not have time to thoroughly read the agreement or seek out counsel for advice. Here, since Josephine was given the agreement the night before the wedding to sign it practically on the spot; it was probably signed under duress.
Incorrect! One key to creating an enforceable agreement is that it be devoid of duress. The most common example of duress is applying pressure to someone at the last minute to sign an agreement. By waiting until the last minute, the person does not have time to thoroughly read the agreement or seek out counsel for advice. Here, since Josephine was given the agreement the night before the wedding to sign it practically on the spot; it was probably signed under duress.
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Incorrect!
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Incorrect!
Correct
Incorrect!
Question 4
Traci and Bill were both 23 years old when they got engaged. Traci came from a very wealthy family; Bill was a struggling law student. Traci's father insisted that they sign a prenuptial agreement. To save money, Traci's father suggested that Traci and Bill use their family attorney to prepare the agreement. Ten years later, when they break up, Bill is very successful; Traci's family is broke. To get a bigger share of their assets, Traci tries to have the prenuptial agreement invalidated. What is Traci's best argument?
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Incorrect!
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Incorrect!
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Incorrect!
Correct Another potentially problematic area is the idea of having joint counsel to prepare and review the proposed antenuptial agreement. Although that was the case with Traci and Bill, the joint attorney was Traci's family attorney. As such, she was adequately represented by counsel. Bill is the one who did not have his own attorney. So, Traci does not have a good argument to invalidate the agreement.
Incorrect! Another potentially problematic area is the idea of having joint counsel to prepare and review the proposed antenuptial agreement. Although that was the case with Traci and Bill, the joint attorney was Traci's family attorney. As such, she was adequately represented by counsel. Bill is the one who did not have his own attorney. So, Traci does not have a good argument to invalidate the agreement.
Question 5
Ike and Tina live in a state that has adopted the Uniform Premarital Agreement Act ("UPAA"). Before their wedding they draft and sign a premarital agreement. A week before the wedding, they decide to call it off and instead continue to live together. Two years later they break up and consult the premarital agreement as guidance in distributing their property. What would be the likely outcome?
Correct
Incorrect!
Correct Premarital agreements are made in contemplation of marriage and become effective upon marriage. Here, although Ike and Tina drafted and signed a premarital agreement, they never got married. As such, the court would not consult the agreement as guidance to distribute their property. Instead, the court would look to any relevant precedents in their state of residence.
Incorrect! Premarital agreements are made in contemplation of marriage and become effective upon marriage. Here, although Ike and Tina drafted and signed a premarital agreement, they never got married. As such, the court would not consult the agreement as guidance to distribute their property. Instead, the court would look to any relevant precedents in their state of residence.
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Incorrect!
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Incorrect!
Question 6
Jane and Dick's prenuptial agreement states that during their marriage Dick will take out the garbage on Tuesday nights. Dick refuses to take out the garbage because it smells and gets his clothes dirty. Jane brings an action to enforce the clause in the prenuptial agreement. How will the court most likely hold?
Correct
Incorrect!
Correct There is very little case law dealing with these types of agreements. In the few cases that have arisen, courts have generally been unwilling to enforce agreements that regulate matters taking place during marriage.
Incorrect! There is very little case law dealing with these types of agreements. In the few cases that have arisen, courts have generally been unwilling to enforce agreements that regulate matters taking place during marriage.
Correct
Incorrect!
Correct
Incorrect!
Question 7
Sara and Samuel were married five years ago. At the time, they signed a prenuptial agreement. The agreement had a sunset provision that it would expire in five years. Since Sara did not want the agreement to expire, she and Samuel signed another agreement to extend the provisions of the original agreement. This second agreement is permissible.
Correct Postnuptial agreements are generally used to update and extend the provisions originally agreed to in the prenuptial agreement. Generally, if the postnuptial agreement meets the same requirements as the original agreement, it will be enforced.
Incorrect! Postnuptial agreements are generally used to update and extend the provisions originally agreed to in the prenuptial agreement. Generally, if the postnuptial agreement meets the same requirements as the original agreement, it will be enforced.
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Question 8
Lydia and John signed a prenuptial agreement when they married two years ago. At the time, both parties fully disclosed their property holding. Subsequently, John acquired a couple pieces of real estate. He is required to rewrite the agreement to include this after-acquired property?
Correct
Incorrect!
Correct The requirement for full disclosure is of the property owned at the time the agreement is signed. It is not mandatory to rewrite the agreement to include after-acquired property.
Incorrect! The requirement for full disclosure is of the property owned at the time the agreement is signed. It is not mandatory to rewrite the agreement to include after-acquired property.