As with any contract, parties drafting a pre-marital agreement prior to getting married should take the utmost care to ensure they fully understand the terms of the agreement and how their conduct can affect their right to recover under the agreement. The Texas courts favor the right to contractual freedom, and it is very difficult to get them to overturn a pre-marital agreement. In the Matter of the Marriage of I.C. and Q.C., the Texas Supreme Court recently denied a wife’s request to rescind a pre-marital agreement due to husband’s failure to make required payments, and found that her effort to rescind the agreement resulted in a forfeiture of her right to certain assets. If you are held to a pre-marital agreement and are considering ending your marriage, a Texas family law attorney can assist you in understanding the terms of your agreement and how certain actions can impact your right to distribution of marital assets.
In The Matter of the Marriage of I.C. and Q.C., wife and husband signed a pre-marital agreement that stated wife would receive a lump sum payment of $5 million if the parties divorced. The agreement contained a clause that stated, in part, if wife tried to invalidate the agreement she would forfeit her right to the lump sum payment.
Husband filed for divorce. Wife petitioned to enforce the agreement, which required husband to make certain payments to wife. Husband fell behind in payments, and wife petitioned the court to require him to pay past due amounts, which the court granted. Wife then filed a counter-petition for breach of contract and breach of fiduciary duty and requested rescission of the agreement. In response, husband filed a declaratory judgment asking the court to rule that by seeking rescission wife waived her right to the lump sum payment, and filed a motion for summary judgment on his declaratory judgment. Following a trial, a jury found wife’s request to rescind the agreement was excused due to husband’s breach by failure to make payments. Husband requested a new trial, which the court granted. The court subsequently granted husband’s motion for summary judgment on the issue of whether wife waived her right to the lump sum payment. Wife petitioned the Supreme Court of Texas for review, which they granted.