On closing day, my in-laws asked me to waive my claim to the $100,000 they gave us as a down payment on a house. Is that legal?

About a week later, my in-laws had me sign a document stating that the funds would be considered “separate property” and that I would not claim them in the divorce. I signed this document on closing day with the family attorney who is also a notary public.

Does this document have legal effect if I get divorced in New York State? Would this be considered a signature under duress, considering it happened on a deadline, or a conflict of interest, considering the family lawyer represents both of us?

Confused and Curious

Related: My Tinder match asked if I ‘rented or owned’ an apartment. Is it gauche to ask financial questions before a first date?

Confused folks,

There is a lot of uncertainty in your letter about what happened the day you signed this prenuptial agreement and how you felt about signing it. The most revealing yet confusing words you use are when your in-laws tell you that you signed. Although he did so voluntarily and appears to have exercised his free will, he also seems to have felt pressured to do so. Your lawyer will guide you through the day’s events. However, you do not say that you were forced to sign or that you signed under duress.

However, there are other aspects of this scenario that you should consider if you consult with an attorney representing you exclusively. You said you didn’t have time to think about it. According to a New York City lawyer, “If you or your spouse pressures you to sign a prenuptial agreement or does not give the other party sufficient time to consider the prenuptial agreement, the court may not enforce the prenuptial agreement.”

“A postnuptial agreement takes control of your property and assets away from the state and into the hands of you and your spouse. A postnuptial agreement protects both you and your spouse and is valid and enforceable as long as both you and your spouse provide full and fair disclosure of all assets. Additionally, the contract must be executed and approved in the complete form required to record the property deed.”

He said $100,000 was deposited into a joint account. My guess is that the money was kept by your in-laws and your husband, and was treated as a separate gift in your prenuptial agreement before using the $100,000 as a down payment. (Aside: Considering that you are both buying a home, assuming you both have a mortgage and deed, and have been married for 14 years, this seems odd behavior to me.)

fair distribution country

The questions you raise are obviously complex and should be discussed in detail with your divorce attorney. Can this prenuptial document be considered legal and fair in future divorce proceedings? “The simple answer is ‘yes,’” says LegalShield attorney William Monaco of Feldman, Kramer, & Monaco PC. “New York is an equitable distribution state and any information related to marital asset contributions is fair game.”

The important issue here is the intentions of the in-laws. “Did they intend to give their son a gift that would normally be considered separate property in a divorce unless he changed its nature along the way?” he asks. “Or were you trying to give both parties a gift? Here, the request to sign a document acknowledging the separability of the funds clearly indicates the intention to give them only to the son. This is not uncommon.

Monaco agrees that it is unclear whether the timing of the request for signatures constitutes “duress.” He says it’s possible, but probably not. “Maybe the timing wasn’t right because it should have been clear from the beginning, but I always had the power to not give any gifts at all. “It will ultimately be up to the matrimonial judge to decide, but in this case, if the parties divorce, it will likely be considered the husband’s separate property.”

‘Clearly unfair’ contract

“Under New York law, for an agreement to waive your rights to marital property to be valid and enforceable (in this case, the express prenuptial agreement at issue), the agreement must be (i) in writing, (ii) signed by you, and (ii) signed by you. ’s husband and (iii) has been recognized or proven in the manner necessary to entitle him to record the deed,” says Ory Apelboim, partner in Blank Rome’s Marriage and Family Law Practice Group.

And if these conditions are met? “That could lead to other problems,” he says. “New York has a strong public policy that favors individuals determining their own interests through contracts. However, an agreement between spouses may be void if the party challenging the agreement proves that it was the product of fraud, duress, or other unequal acts, or if the terms are the result of unconscionable or excessive actions.”

The fact that you did not have a lawyer and that may be considered patently unfair may also work in your favor. “There may be an inference that the husband is making excessive claims, which he must refute,” adds Apelboim. “Additional considerations are that a fiduciary relationship exists between you and your husband and that a prenuptial agreement is a contract that requires consideration to the benefit of each party.”

There are three questions you need to ask yourself. These are legal, financial questions and moral questions. Are there legal grounds to challenge a prenuptial agreement? Do you think it’s worth it to ask your husband for half of this down payment ($50,000) if you divorce? Or is this a matter of principle? Should you have been given more time to consider your options, especially considering you have been married for 14 years?

If you decide to contest this agreement, please do so because you would not have signed it under any other circumstances. How would you have reacted if your in-laws had given you time to think about this? I think this is a big request from my in-laws who have been married for 14 years. If they had asked you to sign a prenuptial agreement, you might have better understood their rationale. If you sincerely believe this is unfair and were coerced into signing this agreement, contact a lawyer for his opinion.

If you have any financial or ethical questions, you can email The Moneyist at qfottrell@marketwatch.com and you can follow Quentin Fottrell on X, a platform previously known as Twitter.

Please confirm Moneyist personal Facebook This is a group looking for answers to life’s trickiest money questions. Post a question, tell us what you’d like to know more about or join us for the latest Moneyist columns.

Moneyist regrets that we are unable to answer questions individually.

Quentin Fottrell’s previous columns:

I asked my elderly father to give up his rights to the house so I could refinance. And she received a pension of 200,000 dollars for me and her sister. Is this a good idea?

My partner is against us getting married. I don’t have the deed to his house, but he does have a revocable trust. What could go wrong?

I want my son to inherit my $1.2 million house. Should I leave it to my second husband in my will? He promised to deliver it.