Waiver
of Spousal Support
in Premarital Agreements
by
James P. Reape
Many family law practitioners
when drafting premarital agreements advised against and stayed
away from any attempt to limit, modify or otherwise interfere
with rights to spousal support.
The reluctance to enter
into a contract on the issue of spousal support arose from prior
California cases holding premarital agreements that attempted to
waive or limit spousal support were void as against public policy,
as well as the fact when California, in 1985, adopted the Uniform
Premarital Agreement Act, it failed to adopt language which expressly
stated that the parties to a premarital agreement could contract
with respect to the modification or elimination of spousal support.
Since the Uniform Act as amended was adopted, California's Appellate
Courts have not commented on the issue of spousal support contacts
until the case of Pendelton v. Fireman decided March 26, 1998. In
Pendelton v. Fireman, the parties were two wealthy, well-educated
people represented by separate counsel who agreed that in the event
the marriage ended in divorce that neither would seek spousal support
from the other. After a four-year marriage, the wife sought substantial
spousal support claiming that the waiver was void for violating
California public policy.
The Appellate Court
in upholding the waiver (reversing the trial court in this regard)
noted that the prior law holding that such agreements were void
as against public policy, was believed to encourage or facilitate
divorce. Long after those cases were decided, California changed
from a fault based system of divorce to a no-fault system and had
changed from a State where the husband was given unilateral right
to manage and control virtually all of the couples community property
to joint management and control. The Appellate Court noted that
when the legislature adopted the California Premarital Agreements
Act, it did so with the understanding that "California case
law would . . . prevail on the issue of spousal support in premarital
agreements." The Court took this as a green light to recognize
". . . the simple fact that premarital spousal support waivers
and limitations no longer violate public policy."
"The decision
to marry is among the most personal and private choices that two
people can make and there is something perverse about a system of
laws that allows a prospective spouse to make premarital decisions
controlling the disposition of all of the spouse's property upon
death -- which may leave the surviving spouse without any form of
continuing support -- but prohibits premarital decisions controlling
support obligations if the marriage ends in divorce." The Court
also looked at a Florida Supreme Court decision dating back almost
30 years that concluded the change in public policy towards divorce
requires a change in the rule respecting antenuptual agreements
settling alimony and property rights so that such agreements should
no longer be held to be void as contrary to public policy.
The Court further embraced
the rationale supporting the validity of premarital agreements citing
the increase of divorce and second marriages ending in divorce,
women entering the work force with an intent to remain there as
professionals and executives, and marriage frequently occurring
later rather than earlier thereby increasing the odds that both
spouses have acquired substantial assets. Premarital agreements
provide a couple the ability to protect existing assets, assume
responsibility for existing debts, characterize after acquired property,
allocate income earned, address income tax issues that will arise
during marriage and in the event of dissolution or death and cover
general testamentary issues as well as those that may exist if there
are children from prior marriages.
"As the law is
starting to recognize, premarital agreements may in fact encourage
rather than discourage marriage. As more than one Court has noted,
society's current acceptance of cohabitation without marriage offers
an attractive alternative to a wealthy man or woman who cannot marry
without relinquishing the right or limit his or her spousal support
obligations in the event of divorce. This reasoning suggests that
the result we reach today does in fact preserve rather than defeat
the sanctity of marriage."
Update: The Supreme
Court has accepted this case for hearing.
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