A contract is a legally binding agreement between two parties. It creates responsibilities and rights that either party can enforce in court. To create a contract in New Jersey, the agreement must have the following elements:
- An offer and acceptance
- Each party must agree to give something or refrain from doing something (i.e., consideration)
- Mutual consent and the intent to be bound by the contract terms
- Reasonably certain contract terms that are sufficiently clear for each party to understand what they should or should not do
A breach of contract occurs when either party fails to fulfill their obligations or does something prohibited by the contract without legal authority. The court may award monetary damages for breach of contract.
The court could order the violating party to attempt to fulfill the terms of the contract. A judge could also order the violating party to stop a specific action that violates the contract terms.
How Does Breach of Contract Apply in a Divorce Case in Monmouth County, NJ?
You may wonder why we are discussing a breach of contract in relation to a divorce in New Jersey. Breach of contract may arise when a spouse fails to abide by the terms of a prenuptial or postnuptial agreement. Validly executed postnuptial and prenuptial agreements are enforceable contacts in New Jersey.
A prenuptial agreement is a contract between two individuals who intend to get married or create a civil union. The contract becomes effective when the parties marry or establish a civil union. Postnuptial agreements are also contracts between parties, but a postnuptial agreement is signed after a couple marries or forms a civil union.
The requirements for a prenuptial agreement are outlined in the New Jersey Uniform Premarital and Pre-Civil Union Agreement Act. Prenups and postnups can include agreements regarding:
- Property divisions should the parties separate, divorce, or die
- Estate planning matters
- Each party’s rights and obligations regarding debt and assets, both marital and separate
- The jurisdiction for the law that governs the contract
- Alimony, spousal support, and financial support
- A party’s right to purchase, sell, use, transfer, or otherwise control property
- Beneficiary designations for life insurance policies
Marital agreements can contain other terms provided the terms do not violate public policy. Prenups and postnups cannot adversely affect a child’s rights. As a result, terms related to child custody and child support are generally unenforceable.
What Happens if a Party Breaches the Contract Terms of a Prenuptial or Postnuptial Agreement?
If your spouse or partner breaches a prenuptial or postnuptial agreement, you can file an action asking the court to enforce its terms. The court can require the party violating the agreement to take immediate steps to fulfill their obligations. The judge may also award the other party attorney’s fees and costs for bringing the enforcement action.
Additionally, the judge may order the violating party to pay damages to the other party. Damages may include expenses and losses incurred because the party did not fulfill their obligations. A prenup or postnup may include a per diem penalty for violations. If so, the judge could order the violating party to pay the other party a penalty for non-compliance.
Why Should Someone Consider Entering a Prenuptial Agreement in New Jersey?
Some people view prenups as admitting the marriage will fail before they say, “I do.” However, prenuptial agreements protect you and your future spouse. They can protect your children and other family members.
Negotiating a prenuptial agreement requires the parties to disclose all financial information. Therefore, a prenup can help spouses deal with financial matters now when they are amicable and reasonable instead of during the emotional upheaval of a divorce.
There are many reasons to consider a prenuptial agreement. Reasons include:
- You have children from a previous relationship that you need to protect
- Your assets or income is substantially greater than your future spouse’s
- You and your spouse intend to live in the home that you owned before the marriage, and you want to maintain it as separate property
- You own a business or have an interest in a family business
- You and your spouse intend to maintain separate accounts and finances during the marriage
- You plan to leave your estate to parties other than your future spouse
- You need to address how you and your spouse will share expenses because you will lose spousal support from a previous marriage once you marry
- Senior couples who wish to protect their retirement and life savings
If you have a prenuptial agreement, it can make a divorce action quicker and less costly. If the prenup decides all matters related to the divorce, there is nothing to argue about or litigate unless you have children and need to address child custody and child support.
Do You Have Questions About Violations of a Prenuptial Agreement?
If your spouse violates the terms of your prenuptial agreement, contact our expert attorneys at The Law Office of Jennifer J. McCaskill, LLC. We’ll review your prenuptial agreement and advise you of your rights and legal options for a breach of contract claim, if applicable.
