New York Divorce Lawyer Blog
Divorce and marital separation agreements are often legally binding contracts that courts are reluctant to set aside without strong justification. However, disputes can arise when one party later challenges the fairness of an agreement, particularly in cases involving financial disclosures, legal representation, and claims of unconscionability. A recent decision issued by a New York court demonstrates the legal standards that govern the rescission of separation agreements and the burden a challenging party must meet to succeed. If you are contemplating ending your marriage, you should seek the advice of an experienced New York divorce attorney as soon as possible.
Case Background
It is reported that the wife initiated an action seeking to rescind a marital separation agreement that had been incorporated, but not merged, into the parties’ judgment of divorce. The wife argued that the agreement should be set aside based on the husband’s failure to disclose financial information, her lack of legal representation at the time of execution, and the alleged unfairness of the terms.
It is alleged that the husband moved for summary judgment to dismiss the wife’s complaint. The trial court, after conducting a fact-finding hearing, granted the husband’s motion, prompting the wife to appeal. The wife contended that the agreement was unenforceable due to the absence of financial disclosure, her lack of knowledge about maintenance guidelines, and the substantive unfairness of the agreement’s terms, particularly concerning property division and spousal support.
Grounds for Setting Aside a Marital Separation Agreement
On review, the court examined the wife’s claims and analyzed whether the separation agreement met the legal standards for enforceability. The court first addressed the issue of financial disclosure, noting that under New York Domestic Relations Law § 236(B)(4), disclosure is required only when alimony, maintenance, or support is in issue. It was found that the wife had executed the separation agreement stating that she was self-supporting and had waived any claims to spousal maintenance or support. Thus, the lack of financial disclosure did not provide grounds for rescinding the agreement.
Next, the court considered the wife’s argument regarding her lack of legal representation and knowledge of maintenance guidelines. It was reported that the trial court had informed both parties of their maintenance obligations and that the wife’s complaint in the divorce action explicitly stated she was not seeking maintenance. Additionally, a copy of the required “Notice of Guideline Maintenance” was included in the court’s records. Consequently, the appellate court found no basis to invalidate the agreement on these grounds.
The court also examined the fairness of the agreement. New York law generally favors marital settlement agreements, and courts will not disturb them absent evidence of fraud, overreaching, or unconscionability. The wife alleged that she lacked the education and experience to evaluate the agreement properly.
However, the court determined that her claims were unsupported, as she had taken college courses and had requested handwritten amendments to the agreement before signing. The court also found that the agreement’s terms were not so manifestly unfair as to “shock the conscience,” which is the threshold for establishing unconscionability.
Regarding the division of marital property, the wife contended that she had relinquished possessory rights to the marital home under the agreement. The court found otherwise, holding that the agreement designated the husband as the “primary resident” but did not grant him exclusive possession. Furthermore, the wife retained the right to access the property with notice and continued to use the barn on the marital estate. The court concluded that the agreement did not restrict the wife’s ability to seek a partition action if she wished to sell her share of the property. As such, the court upheld the trial court’s decision.
Talk to an Assertive New York Divorce Attorney
While marital separation agreements can help people control the terms of their divorce, they must be drafted with great care, as it can be challenging to prove they should be set aside at a later date. If you are facing issues related to divorce or separation agreements, it is essential to seek legal guidance to protect your rights. Ksenia Rudyuk is an assertive New York divorce attorney who can assist you in taking the measures necessary to safeguard your interests throughout the dissolution process. You can reach Rudyuk Law Firm at 212-706-2001 or via our online form to schedule a meeting.