Ruling that prenuptial agreements resulting from a vast disparity in bargaining power must meet a high standard of procedural fairness, the New Hampshire Supreme Court invalidates an agreement presented to a second wife by her husband two days before their wedding. In Re Estate of Hollett (N.H., No. 2002-346, Sept. 26, 2003).
John and Erin Hollett married on August 18, 1990. John, a successful real estate developer, was in his late 50s and Erin was 30 years his junior. John's previous marriage had produced five children and ended in divorce. When John and Erin became engaged in 1988, they had a brief discussion about prenuptial agreements, during which Erin declared that she would never sign such an agreement.
The subject was dropped until 48 hours before their planned 200-guest wedding, when John presented Erin with a prenuptial agreement. Under the original draft, Erin would receive only $25,000 and an automobile in the event of a divorce. A visibly distraught Erin met with an attorney selected by John to discuss the agreement. After negotiations, John and Erin signed an agreement on their wedding day that was more favorable to Erin, allowing her to obtain as much as one-sixth of John's estate in the event of a divorce or John's death.
Following John's death in 2001, Erin petitioned the probate court to invalidate the prenuptial agreement, while John's first wife and children argued in favor of upholding it. The probate court concluded that the prenuptial agreement was valid and enforceable.
The Supreme Court of New Hampshire reverses, ruling that Erin's signing of the agreement was involuntary. The court holds that Erin's bargaining position was vastly inferior to that of her husband, and that prenuptial agreements that result from such a disparity in bargaining power must meet a high standard of procedural fairness. In this case, "despite having every opportunity to negotiate the agreement well before the wedding, John elected to conduct his affairs so that Erin had no time to choose her own counsel, and very little time to negotiate and reflect upon the agreement."
For the full text of this decision, go to: https://www.courts.state.nh.us/supreme/opinions/2003/holle119.htm
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