Bratton v. Bratton

• Decision Date: 30 April 2004
• Docket Number: No. E2002-00432-SC-R11-CV.,E2002-00432-SC-R11-CV.
• Citation: 136 S.W.3d 595
• Parties: Cynthia Lee BRATTON v. Michael Wayne BRATTON.
• Court: Tennessee Supreme Court

136 S.W.3d 595

Cynthia Lee BRATTON v. Michael Wayne BRATTON.

No. E2002-00432-SC-R11-CV.

Supreme Court of Tennessee, at Knoxville.

January 2004 Session.

April 30, 2004.

Douglas R. Beier, Morristown, for the appellant/appellee, Cynthia Lee Bratton.

Sarah Y. Sheppeard, Knoxville, for the appellee/appellant, Michael Wayne Bratton.

OPINION

WILLIAM M. BARKER, J., delivered the opinion of the court, in which FRANK F. DROWOTA, III, C.J., and E. RILEY ANDERSON and ADOLPHO A. BIRCH, Jr., JJ., joined. JANICE M. HOLDER, J., filed a dissenting opinion.

We granted permission to appeal in this divorce proceeding to determine whether postnuptial agreements are contrary to public policy and if not, whether the postnuptial agreement entered into by the parties in this case is valid and enforceable. We hold that postnuptial agreements are not contrary to public policy so long as there is consideration for the agreement, it is knowledgeably entered into, and there is no evidence of fraud, coercion or duress. However, the agreement between the parties in this case is invalid because it lacks adequate consideration. We also granted the husband's application for permission to appeal to determine whether the trial court erred in awarding alimony in futuro instead of rehabilitative alimony. We hold that the trial court properly considered all of the relevant statutory factors and that its award of alimony does not amount to an abuse of discretion. Therefore, the judgment of the trial court is affirmed.

BACKGROUND

The parties, Cynthia Lee Bratton (Ms. Bratton) and Michael Wayne Bratton (Dr. Bratton), were married on June 26, 1982. At the time of the marriage, Dr. Bratton had completed his first year of medical school, and Ms. Bratton was employed as a research technician. Ms. Bratton had a child from a previous marriage. At the time of the trial, the parties had two minor children, ages sixteen and thirteen.

On June 27, 1983, Dr. Bratton handwrote and signed the following letter:

I, Michael W. Bratton, being of sound mind and being married to Cynthia L. Bratton hereby promise never to be the cause of a divorce between us. In the event that I do not fulfill my promise, I will give Cindy 50% of my present belongings and 50% of my net future earnings.

A more formal "property settlement agreement" was signed by both parties on August 26, 1983. That agreement provided in pertinent part:

WHEREAS, the parties are husband and wife and desire to provide for the future division and [dis]tribution of property and support of the Wife in the event of a future divorce; and

WHEREAS, the parties desire that their respective rights and interests in and to all future property to be accumulated be expressly set forth herein and established in accordance with the terms and provisions hereof.

NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES, the mutual benefits accruing to the respective parties and other good and valuable consideration, received or to be received by each of the parties hereto, it is agreed as follows:

1. In the event the Husband is guilty of statutory grounds for divorce under the statutes of the state the parties are domiciled and the Wife institutes divorce proceedings in the state courts of such state, all property jointly owned by the parties, real, personal, or mixed, shall be divided equally between the parties.

2. In the event the Husband is guilty of statutory grounds for divorce under the statutes of the state the parties are domiciled and the Wife institutes divorce proceedings in the state courts of such state, the Husband shall pay to the Wife, one-half (1/2) of all of the Husband's net gross income (after deduction for state and federal income taxes).

The parties' versions as to the events surrounding the execution of the agreement differ substantially. Ms. Bratton testified that prior to their marriage, she and her husband discussed the fact that she would forgo a career as a dentist to stay at home and raise a family if Dr. Bratton would provide one-half of his income to her in the event of a divorce. No written agreement was ever entered into prior to the marriage. One year after the parties married, Ms. Bratton again voiced an interest in dental school to her husband, at which time Dr. Bratton offered to formalize their prior agreement if she would give up the pursuit of a career. Ms. Bratton testified that it was her husband who had the agreement prepared by an attorney and then brought it to her to sign.

Dr. Bratton testified that there had been no discussion of his wife's interest in dental school prior to their marriage or at any time during the marriage. Instead, he testified that one year into their marriage, Ms. Bratton told him that the doctors with whom she worked warned her that he was likely to leave her once he graduated from medical school and that she needed a legally binding agreement to protect herself from that possibility. After arguing about this with his wife, Dr. Bratton handwrote the letter of July 1983, promising not to leave her and promising that if he did, she would get one-half of his property and future earnings. Dr. Bratton testified that it was Ms. Bratton who contacted an attorney to have the agreement drafted and brought it home for him to sign. At first he refused, but then he relented when she threatened to leave him if he did not sign it. Both parties testified that at the time the agreement was signed, they were not having any marital difficulties.

On March 15, 2000, Ms. Bratton filed for divorce. Dr. Bratton filed a motion for partial summary judgment to have the Property Settlement Agreement declared invalid for lack of consideration. The trial court granted the motion in part. The court found that the agreement was severable and that the portion of the agreement relating to the division of property was valid and enforceable, but that the portion regarding the support was invalid for want of consideration. The parties were directed to proceed with mediation, following which a trial was held to determine the value of the property to be divided and to set child support and alimony.

The trial court found that in the year 2000, Dr. Bratton, who was an orthopedic surgeon, had a gross annual income of $551,521.00. The court also found that "[u]pon the parties' marriage, Ms. Bratton chose to forgo her career ... in order to support Dr. Bratton's medical career, as well as to serve as homemaker and primary caregiver for the parties' children." While Ms. Bratton is licensed as a real estate broker, the court found that "her business attempts have proved financially unsuccessful."

The trial court granted the divorce to Ms. Bratton based on inappropriate marital conduct on the part of Dr. Bratton in the nature of adultery. Ms. Bratton was designated the primary residential parent of the parties' two minor children. Dr. Bratton was directed to pay $3,237.00 per month in child support based upon the Child Support Guidelines, Tennessee Code Annotated section 36-5-101 (2001), and the court's finding that his annual gross income was $551,521.00. The court also directed Dr. Bratton to pay $1000.00 per month per child into an educational trust fund. Marital property and marital debt were divided equally between the parties. The court awarded Ms. Bratton alimony in futuro in the amount of $10,500.00 per month until her death or remarriage. Both parties appealed.

The Court of Appeals found that there was consideration for both parts of the postnuptial agreement, but that the whole agreement was in violation of public policy. However, the Court of Appeals affirmed the outcome of the lower court, finding that the evidence did not preponderate against the trial court's division of marital property and marital debt. The court also affirmed the award of alimony in futuro to the wife.

Both parties appealed to this Court. Ms. Bratton argues that the agreement entered into by the parties was valid and should be enforced, thereby obligating Dr. Bratton to pay her one-half of his after-tax income. Dr. Bratton argues that the lower court properly found the agreement to be unenforceable as to support, but that the court erred in awarding alimony in futuro instead of rehabilitative alimony.

ANALYSIS

Are Postnuptial Agreements Contrary to Public Policy?

The Court of Appeals found that the postnuptial agreement was void as against public policy because it preempted the trial court from equitably assigning marital property and alimony as provided by statute. While this Court has declared valid agreements entered into after marriage if they are incident to a reconciliation, we have not addressed the issue of postnuptial agreements that are entered into before the onset of marital difficulties.

There are several types of agreements entered into by spouses or potential spouses. Antenuptial agreements, entered into by prospective spouses in contemplation of marriage, have long been favored by public policy whether the agreement provides for the division of property, see Hoyt v. Hoyt, 213 Tenn. 117, 372 S.W.2d 300, 303 (1963), or spousal support, see Cary v. Cary, 937 S.W.2d 777, 782 (Tenn.1996). See also Tenn.Code Ann. § 36-3-501 (2001). Courts enforce antenuptial agreements like any other contract provided that they are "entered into freely and knowledgeably, with adequate disclosure, and without undue influence or overreaching." Cary, 937 S.W.2d at 782. Likewise, reconciliation agreements have been found to be favored by public policy and are enforceable in a manner similar to antenuptial agreements. See Hoyt, 372 S.W.2d at 303-04; Minor v. Minor, 863 S.W.2d 51, 54 (Tenn.Ct.App.1993).

The agreement in the case under submission falls into a third category of agreements—postnuptial agreements. While entered into by spouses after marriage, they differ from reconciliation agreements in that they are entered into before marital problems arise. Like both antenuptial and reconciliation agreements,...