Also known as: financial disclosures · fin. disclosure
Written by attorneys · grounded in primary & secondary sources — see below
An obligation to provide a reasonably accurate description and good faith estimate of the value of property, liabilities, and income of one party to another before execution of a premarital agreement, marital agreement, or marital settlement agreement. The obligation is satisfied when the recipient receives the information, expressly waives further disclosure in a separate signed record, or already possesses adequate knowledge of the relevant facts.
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Fiona Foster received a packet of documents from her fiancé three days before their destination wedding. The packet listed assets and income estimates but omitted recent clinic-expansion liabilities and current pension valuations. Fiona signed the premarital agreement during her lunch break without a separate waiver of further disclosure. The court later found the agreement unenforceable because Fiona had not received adequate financial disclosure.
Francesca Fiore, the surviving spouse, executed a post-marital agreement with her husband two weeks before his death. She received only glossy brochures showing projected growth and no balance sheets or liability statements. Francesca had not signed any separate record waiving additional disclosure. The probate court refused to enforce the agreement against her because she had not received adequate financial disclosure.
Finn Fletcher and his wife signed a marital settlement agreement during divorce negotiations. Finn later proved that his wife had concealed substantial investment accounts and understated her income at the time of execution. The agreement was unfair on its face and Finn lacked any general knowledge of her assets. The court set the agreement aside because the absence of full financial disclosure shifted the burden to the defending spouse.
Adequate financial disclosure occurs when a party receives a reasonably accurate description and good faith estimate of the other party's property, liabilities, and income. The requirement is also satisfied if the party signs a separate record expressly waiving further disclosure or already possesses adequate knowledge of the information.
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Yes. When documents provided before signing omit recent liabilities or current market valuations of major assets such as pensions, the disclosure is not reasonably accurate. Courts treat such omissions as a failure to satisfy the statutory requirement.
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A premarital agreement is unenforceable if the party against whom enforcement is sought proves that she did not receive adequate financial disclosure before signing. The absence of disclosure is an independent ground for invalidation even when other procedural requirements are also missing.
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When an agreement is shown to be unfair or unreasonable and the challenging spouse lacked full financial disclosure, the burden shifts to the defending spouse to prove that the agreement was entered into freely, voluntarily, and with sufficient knowledge.
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