Articles Posted in Duress

A Texas postnuptial agreement is not enforceable if the party proves that it was not signed voluntarily or that it was unconscionable and they were not given a fair and reasonable disclosure of the other party’s property or financial obligations, did not voluntarily and expressly waive disclosure in writing, and did not have or reasonably could not have had adequate knowledge of the other party’s property or obligations. Tex. Fam. Code § 4.105.  A former husband recently challenged a finding the parties’ postnuptial agreement in a high net worth divorce was unenforceable.

The parties married in 1991 and the wife petitioned for divorce in 2019.  She voluntarily non-suited that case and the parties signed a postnuptial agreement.  The wife filed for divorce again in 2022.  She argued the agreement was unconscionable and she had entered into it involuntarily.

According to the appeals court, the evidence showed the husband was not represented by an attorney at the time. The wife emailed him links to websites about postnuptial agreements. The husband testified they drafted an agreement that day. The wife denied being involved with drafting the agreement.  The husband testified she told him her attorney would review it and he agreed to reimburse her for the fees. She contacted her attorney at some point and signed the non-suit order. The court granted the non-suit the same day the wife’s attorney filed it. The following day, the parties signed the agreement in front of a notary, but the wife’s attorney was not present.

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What is a Mediated Settlement Agreement?

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A mediated settlement agreement (“MSA”) in a Texas divorce is binding if it meets certain requirements.  It must state that it is not subject to revocation in bold letters, capital letters or underlined text.  It must also be signed by each party and the party’s attorney, if present. Tex. Fam. Code Ann. § 6.602.  Some Texas courts have held that an MSA may be unenforceable if it is obtained by fraud, duress or coercion.

A husband recently challenged an MSA, partly on the grounds that he allegedly signed it under duress.

The parties had been married since 1981.  Some of the property acquired during the marriage was held by a limited partnership in which the parties owned a 95% interest.  In August 2017, the husband was arrested after the wife reported he had threatened her with a firearm.  The wife filed for divorce the very next day.

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