Prenuptial agreements are contracts entered into by prospective spouses, outlining terms of property division, debt allocation and spousal support in the event of a divorce. While prenups are generally valid under Arizona law, there are circumstances under which a court may refuse to enforce them. One significant factor that can influence a prenup’s enforceability is a spouse's claim of lack of understanding of their legal rights when they signed it.

Under Arizona’s Uniform Premarital Agreement Act, a prenuptial agreement may be found unenforceable for any of the following reasons:

1. Involuntariness — Coercion, duress or undue influence at the time of signing can render the agreement invalid. The courts will examine the circumstances surrounding the agreement's execution, including each party's mental state and the presence of any pressure, manipulation or deceit.

2. Unconscionability — An agreement may be disregarded if it is so one-sided that it would leave one spouse with a significantly disproportionate share of assets, if the terms of the agreement would cause one spouse undue hardship while unfairly benefiting the other.

3. Lack of proper disclosure — A major reason for a court’s refusal to enforce a prenup is one party’s failure to fully disclose their financial situation, or if the other party did not waive the right to disclosure in writing.

A spouse's claimed lack of understanding of their legal rights regarding alimony and property division can be a critical factor in the court's analysis. For a party’s signing to be voluntary, they must have understood the rights they were relinquishing. This understanding may be lacking due to:

• Complex or misleading terms — If the language of the agreement is overly complex or intentionally misleading, a spouse may claim that they did not understand what they were signing, particularly regarding their rights to alimony or property division.

• Low financial literacy — If one spouse significantly lacks financial literacy, and this disparity was exploited during the formation of the agreement, the court may find that the spouse did not fully understand their rights or the agreement's consequences.

• Absence of legal advice — If a spouse did not have independent legal representation or the opportunity to seek it, this can support a claimed lack of understanding, especially if the agreement provides much less than what would have been awarded under state divorce laws.

Arizona courts are cautious about enforcing prenuptial agreements where it appears one party was not fully aware of what they were signing. As such, each spouse planning to enter a prenup should seek the advice of a knowledgeable prenuptial agreement attorney. A skilled attorney can draft a strong agreement that anticipates all issues that could arise if enforcement should be required.

If you are considering a prenuptial agreement, the experienced attorneys at Clark & Schloss Family Law, P.C. in Scottsdale, Arizona can help with drafting, review and negotiation. For a consultation, call us at 602-789-3497 or contact us online.