McHugh v. McHugh

• Decision Date: 15 July 1980
• Citation: 436 A.2d 8,181 Conn. 482
• Court: Connecticut Supreme Court
• Parties: Patricia M. McHUGH v. James J. McHUGH III.

Page 8

436 A.2d 8

181 Conn. 482

Patricia M. McHUGH v. James J. McHUGH III.

Supreme Court of Connecticut.

Argued March 13, 1980.

Decided July 15, 1980.

Marilyn P. A. Seichter, Hartford, for appellant (defendant).

Irving H. Perlmutter, New Haven, with whom, on the brief, was Gary P. Sklaver, New Haven, for appellee (plaintiff).

Before COTTER, C. J., and BOGDANSKI, PETERS, HEALEY and PARSKEY, JJ.

ARTHUR H. HEALEY, Associate Justice.

This case concerns the effect of an antenuptial agreement between the parties upon the trial court's judgment dissolving their marriage and ordering a property settlement. The plaintiff and the defendant met in early 1974 and sometime in April 1974, decided to live together without being married. On February 20, 1976, the parties married and on April 22, 1976, the plaintiff gave birth to a child. In July, 1978, the parties' brief and stormy marriage was dissolved.

Prior to their marriage, the plaintiff and the defendant had entered into an antenuptial agreement. In that agreement the parties stated that they intended to retain individual ownership of the property that each had acquired prior to the marriage "to the same extent as if each had remained single." The agreement went on to set out the particular property it was intended to encompass, including the parties' automobiles, bank accounts, various items of personal property, and two parcels of real property owned by the defendant and located in Bethany, Connecticut. Paragraph three of the agreement provided that "(a)ll earnings from employment of either party after the marriage shall be considered joint funds, and each shall have an undivided one-half interest therein." Further provision was made for the parties' receipt of gifts during the marriage, for the sale of individually owned property during the marriage, and for the disposition of the parties' property at death.

The trial court, in the judgment dissolving the marriage, entered various orders, which provided, inter alia, that the plaintiff have custody of the minor child; that she be awarded lump sum alimony of $15,000 payable in certain installments; and that the defendant transfer his interest in the jointly owned family home in Woodbridge to the plaintiff.

On appeal, the defendant does not take serious issue with the alimony award or any other aspect of the trial court's judgment, ¹ except that portion requiring him to transfer to the plaintiff his interest in the family home. ² The defendant claims that the parties' antenuptial agreement is enforceable and that this order violates that agreement. He reasons that because a portion of the down payment on the home together with the mortgage payments derived from his income, the order awarding to the plaintiff his interest in this property violated the "earnings clause" of the antenuptial agreement. We do not agree.

Because this case involves a claim that the terms of an antenuptial agreement relating to the property of the parties is binding upon the court in a dissolution action, a question that this court has not previously decided, it is appropriate at the outset to consider generally the enforceability of such agreements. The validity of an antenuptial contract depends upon the circumstances of the particular case. Wulf v. Wulf, 129 Neb. 158, 161, 261 N.W. 159 (1935). Antenuptial agreements relating to the property of the parties, and more specifically to the rights of the parties to that property upon the dissolution of the marriage, are generally enforceable where three conditions are satisfied: (1) the contract was validly entered into; (2) its terms do not violate statute or public policy; and (3) the circumstances of the parties at the time the marriage is dissolved are not so beyond the contemplation of the parties at the time the contract was entered into as to cause its enforcement to work injustice. See Clark, Law of Domestic Relations (1968) § 1.9; 2 Lindey, Separation Agreements and Ante-Nuptial Contracts (Rev.Ed.1970) § 90; 1 Nelson, Divorce and Annulment (1945) § 13.03; 41 C.J.S. Husband and Wife § 80; 41 Am.Jur.2d, Husband and Wife, §§ 283-305; annot., 57 A.L.R.2d 942.

An antenuptial agreement is a type of contract and must, therefore, comply with ordinary principles of contract law. In re Estate of Luedtke, 65 Wis.2d 387, 222 N.W.2d 643 (1974); In re Estate of Rosenstein, 326 So.2d 239 (Fla.App.1976); 2 Lindey, op. cit. § 90, p. 90-68; Clark, op. cit. § 19, p. 27; see 41 Am.Jur.2d, Husband and Wife §§ 283, 288. To determine whether an antenuptial agreement relating to property was valid when made, courts will inquire whether any waiver of statutory or common-law rights, or the right to a judicial determination in any matter, was voluntary and knowing. See, generally, 2 Lindey, op. cit. § 90, p. 90-77. A party must, of course, be aware of any right that he possesses prior to a proper waiver of it. Ibid.; see In re Estate of Taylor, 205 Kan. 347, 355, 469 P.2d 437 (1970); see also Stern & Co. v. International Harvester Co., 148 Conn. 527, 534, 172 A.2d 614 (1961). The duty of each party to disclose the amount, character, and value of individually owned property, absent the other's independent knowledge of the same, is an essential prerequisite to a valid antenuptial agreement containing a waiver of property rights. See Friedlander v. Friedlander, 80 Wash.2d 293, 300, 494 P.2d 208 (1972); Rosenberg v. Lipnick, --- Mass. ---, 389 N.E.2d 385 (1979); Clark, op. cit. § 1.9, p. 30; 2 Lindey, op. cit. § 90, pp. 90-54 to 90-56. "The burden is not on either party to inquire, but on each to inform, for it is only by requiring full disclosure of the amount, character, and value of the parties' respective assets that courts can ensure intelligent waiver of the statutory rights involved. See, e. g.,Guhl v. Guhl, 376 Ill. 100, 33 N.E.2d 185 (1941); Megginson v. Megginson, 367 Ill. 168, 10 N.E.2d 815 (1937); Denison v. Dawes, 121 Me. 402, 117 A. 314 (1922); Hartz v. Hartz, 248 Md. 47, 234 A.2d 865 (1967); In re Estate of Kaufmann, 404 Pa. 131, 171 A.2d 48 (1961); In re Estate of McClellan, 365 Pa. 401, 75 A.2d 595 (1950). See generally Annot., 27 A.L.R.2d 883, §§ 3, 4 (1953 & Supp. 1978)." Rosenberg v. Lipnick, supra, 388; see also 41 Am.Jur.2d, Husband and Wife § 297. It has been said that "(u)nder ordinary circumstances, parties to an ante-nuptial agreement do not deal at arm's length; they stand in a relationship of mutual confidence that calls for the exercise of good faith, candor and sincerity in all matters bearing upon the agreement." 2 Lindey, op. cit. § 90, p. 90-47; see Rosenberg v. Lipnick, supra; see also Clark, Domestic Relations, loc. cit. Other factors that bear upon the validity of such contracts include which party drafted the agreement, by counsel or otherwise, and whether the parties were represented by counsel. 2 Lindey, op. cit. § 90, p. 90-70.

In Sacksell v. Barrett, 132 Comm. 139, 43 A.2d 79 (1945), this court recognized the validity of an antenuptial agreement in which each party released any claim or right to any property owned by the other at the time of marriage and in which each had agreed that upon the death of the other, the survivor would have no claim to such property. ³ Quoting Staub's Appeal, 66 Conn. 127, 134, 33 A. 615 (1895), we stated in Sacksell that "(o)n principle there appears to be no good reason why such an agreement, if fairly made and entered into, by a (person) of full age, for adequate consideration received, should not be binding upon (him)." Sacksell v. Barrett, supra, 132 Conn. 145, 43 A.2d 81. The court's first inquiry, then, is to ascertain whether the agreement complies with the ordinary principles of contract law and whether its terms and the circumstances surrounding its execution are such as to demonstrate that the parties were aware of their legal rights and their respective assets and liabilities, and proceeded by the agreement to alter those rights in a fair and voluntary manner.

It is clear that antenuptial agreements will not be enforced where to do so would violate the state statutes or public policy. See annot., 57 A.L.R.2d 942 § 2. In this regard, it is necessary to distinguish between the violation of statute and the informed and voluntary waiver of rights created by statute. The former is prohibited while the latter is typically the object of such agreements. See Sacksell v. Barrett, supra; 2 Lindey, op. cit. § 90, p. 90-74. A spouse's waiver of the right to claim entitlement to certain property upon dissolution of marriage, for example, could, under appropriate circumstances, be valid, while a spouse's contractual agreement not to be liable upon dissolution of marriage for the support of children he has a duty to support would not be. See Van Zandt v. Van Zandt, 15 Conn.Supp. 262, 263 (1947); Alves v. Alves, 262 A.2d 111, 117 (D.C.App.1970); 41 Am.Jur.2d, Husband and Wife § 283. Similarly, antenuptial agreements that promote, facilitate or provide an incentive for separation or divorce are generally opposed to public policy and of dubious enforceability. Volid v. Volid, 6 Ill.App.3d 386, 389-91, 286 N.E.2d 42 (1972); 2 Lindey, op. cit. § 90, p. 90-04; Restatement (Second) Contracts § 332 (Tent. Draft No. 12, 1977). Thus, a provision of an antenuptial agreement waiving the right to defend against a future divorce action, or one creating a substantial economic advantage upon dissolution irrespective of fault, or one relieving one spouse of the duty to support the other during the marriage, has been said to contravene public policy. See Clark, op. cit. § 1.9, p. 29; 2 Lindey, op. cit. § 90, pp. 90-94 to 90-95; 6A Corbin, Contracts (1962) § 1474; annot., 57 A.L.R.2d 942 § 2.

Finally, an antenuptial agreement will not be enforced where the circumstances of the parties at the time of the dissolution are so far beyond the contemplation of the parties at the time the agreement was made as to make enforcement of the agreement...