DeLorean v. DeLorean
Facts
The parties signed an antenuptial agreement a few hours before their marriage in California providing that all property, income, and earnings acquired before and after marriage would remain the separate property of the acquiring spouse. The wife claimed the agreement should not be enforced because the husband did not fully disclose his financial affairs and because he pressured her to sign by threatening to cancel the wedding. The agreement stated it was to be construed under California law, and the husband had disclosed only general information that he owned substantial property and had interests such as a farm in California, land in Montana, and a share in a major league baseball club. After a New Jersey court ruled an earlier California divorce proceeding invalid for lack of residency, both parties formally agreed to have a retired California judge hear and decide the validity of the prenup, and he found it valid and enforceable.
Issue
Under the governing law, was the parties' antenuptial agreement valid and enforceable despite the wife's claims of inadequate disclosure and duress? Also, could the parties in a pending New Jersey matrimonial action validly submit the issue of the prenup's enforceability to binding arbitration?
Rule
An antenuptial agreement is enforceable only if it was entered voluntarily, is not unconscionable, and was preceded by the level of financial disclosure required by the governing law. Where the agreement expressly selects another state's law and the parties have substantial contacts with that state, that law governs construction and validity; and parties to a matrimonial dispute may, by formal written agreement, submit such an issue to binding arbitration, with judicial review limited to the statutory grounds in N.J.S.A. 2A:24-8.
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If Nora later challenges the agreement in a New Jersey divorce action on the ground of duress, how should the court most likely rule?