Laws
Application at Death: Spouses or domestic partners may jointly agree to the status or disposition of the whole or any portion of the community property, then owned by them or afterward to be acquired, to take effect upon either death.[2]
Oral vs. Written Agreement: Courts will overturn an oral property agreement if the parties do not consistently adhere to it during their relationship.[2]
Validity: There is a two-pronged test for evaluating the validity of a postnuptial agreement.[2]
First, the court must decide whether the agreement provides a fair and reasonable provision for the party not seeking enforcement of the agreement. If the agreement is fair and reasonable, and the challenging party has not shown fraud or overreaching, the analysis ends, and the agreement may be validated.[3]
The second prong requires the court to examine the procedural fairness of the contract by asking two questions:
- Whether the parties fully disclose the amount, character, and value of the property involved, and;
- Whether the agreement was entered into by both spouses, fully and voluntarily on independent advice and with full knowledge of their rights.[1]