The Arkansas Supreme Court rules that a postnuptial agreement is enforceable against a surviving wife under common law contract principles and that the decedent's attorney was not required to inform her that she should consult her own attorney before entering into the agreement. Stewart v. Combs (Ark., No. 06-41, Nov. 16, 2006).
Paula and James Stewart married on August 3, 1980. In March 1982, both signed a postnuptial agreement in which they waived and released all right, title, and interest to the property owned by the other. The agreement was drafted by Mr. Stewart's attorney and Mrs. Stewart neither retained an attorney nor was urged to do so. Two months later Mr. Stewart executed his will.
Mr. Stewart died in 2004 and Mrs. Stewart elected to take against the will. The executors of Mr. Stewart's estate used the postnuptial agreement as a defense to the election and against Mrs. Stewart's petition for an award of statutory allowances. The trial court found the agreement to be valid and denied Mrs. Stewart any interest in her deceased husband's property.
Mrs. Stewart appealed, arguing that the agreement was invalid and void at common law or that the court should have applied the state prenuptial statute, which would have required Mrs. Stewart to consult with independent counsel prior to signing the agreement for it to be enforceable against her. The appeals court certified the case to the Arkansas Supreme Court as it involved an issue of significant public interest and was a question of first impression in the state.
The Arkansas Supreme Court affirms the trial court decision, finding that the postnuptial agreement was supported by consideration, that Mrs. Stewart waived her right, title, and interest to her deceased husband's property, and that it was not error for the trial court to find the agreement fair and equitable. The court also finds that the state prenuptial statute, by its terms, does not apply to postnuptial agreements.
To download the full text of this decision in PDF format, go to: https://courts.state.ar.us/opinions/2006b/20061116/06-041.pdf.
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