The Surprising Limits of Premarital Agreements: Unfaithfulness Clauses and Public Policy

When it comes to premarital agreements (prenups), many believe they can include any clause they want. However, a surprising legal boundary exists: certain clauses can be unenforceable if they contradict public policy.

Understanding Diosdado v. Diosdado: A Legal Analysis

Introduction: The case of Diosdado v. Diosdado is a pivotal one in understanding the limits of what can be included in premarital agreements, specifically regarding clauses tied to personal behavior such as infidelity.

Case Background: In Diosdado v. Diosdado, the premarital agreement included a clause where the husband agreed to pay $450,000 if he was found to be sexually unfaithful. The case came to court when this clause was contested.

Legal Analysis:

1. The Infidelity Clause: This clause was central to the dispute. The husband was contractually bound to pay a significant sum in the event of his infidelity.

2. Court's Ruling: The court ruled that this clause was unenforceable. The decision was based on the principle that such a clause contradicts public policy.

3. Public Policy Considerations: Public policy in family law aims to uphold fairness and mutual respect. A clause that imposes a financial penalty for personal behavior like infidelity is seen as contradictory to these principles. It's perceived as punitive rather than protective of mutual marital interests.

4. Implications for Premarital Agreements: This ruling underscores that not all terms agreed upon by parties in a premarital agreement will be enforceable. Clauses that are seen as promoting disharmony, or are punitive in nature, particularly regarding personal behaviors, are likely to be struck down as against public policy.

Conclusion: Diosdado v. Diosdado serves as a crucial reminder that while premarital agreements offer a way to pre-plan aspects of marital dissolution, they are not a carte blanche. The enforceability of their terms is subject to legal scrutiny, particularly through the lens of fairness and public policy. This case highlights the importance of consulting legal expertise in drafting such agreements to ensure that they align with legal standards and ethical considerations.

Separate Property Contributions to Community Property After Separation: What You Need to Know

Dealing with property and finances during a divorce can get tricky, especially when it comes to understanding what happens with your separate property (the assets you own individually) after you've separated. This post breaks down the complex rules into simpler terms.

The Basic Rule: Generally, if you use your own property (Separate Property) to help out with joint property (Community Property) after you've separated, you won't usually get that money or value back. But, like most legal rules, there are a few exceptions.

Exceptions and Key Points:

1. Special Circumstances for Reimbursement:

   • There are some cases where you might get reimbursed, but without any extra for interest, and only up to a certain limit. This is under specific legal rules (like in Family Code Section 1000(b2)).

2. No Retroactive Claims:

   • If you think you might be owed something, it’s important to know that you can't make a claim for anything that happened in the past before certain rights were established, as shown in the Heikes case from 1995.

3. No Payback for Usual Expenses:

   • If you've been paying for regular stuff like maintenance, insurance, or taxes for joint property, the law typically says you won't get reimbursed. This is just part of owning property together.

4. Gifts vs. Loans:

   • If you didn't clearly state that the money you put towards joint property was a loan or part of an agreement, the law might see it as a gift. This means you gave it without expecting anything back.

5. Understanding Debt Payments:

   • If you're paying off debts for joint property, how much you might get back can depend on what type of debt it was and how it was handled.

Conclusion: Navigating what happens to your own property when it's been mixed with joint property after separation can be complex. It’s important to know these general rules, but always a good idea to talk to a legal expert for advice specific to your situation. They can help you figure out if any of these exceptions apply to you.

Navigating Post-Separation and Pre-Judgment Reimbursement Issues

The post-separation but pre-judgment phase in family law entails unique reimbursement challenges. This post explores these scenarios and the legal principles governing them.

Post-Separation Acts: Following separation, certain actions can give rise to reimbursement claims:

• Separate Property Used to Pay Community Property Debts: Generally, there is no reimbursement, as per Hirsch (1989), except under specific conditions outlined in Family Code Section 2640b.

• Separate Property Contributions to Maintain Community Property: No reimbursement is typically due for maintenance, insurance, taxes, or interest.

Pre-Judgment Considerations: In the period before judgment, the following considerations are crucial:

• Separate Property Used to Improve Community Property: The spouse is entitled to limited reimbursement to the extent of the increase in Fair Market Value.

• Community Property Used for Debts or Benefit of a Spouse: Reimbursement of Community Property at Fair Market Value is possible unless related to support or deemed unreasonable.

Key Takeaways: The post-separation, pre-judgment period in family law cases requires careful navigation of reimbursement issues, considering the specific circumstances and legal statutes involved.

Post-Judgment Reimbursement: What You Need to Know

Introduction: Understanding post-judgment reimbursement in family law is crucial for navigating the complexities that arise after a judgment has been passed.

Post-Judgment Acts: Post-judgment scenarios include:

• Separate Property Applied to Judgment for Debt Assigned to Spouse: Entitled to reimbursement plus interest and attorney fees, as per Family Code Section 916.

• Separate Property Used for Community Property Benefit of Spouse: Reimbursement is not typically available without an agreement.

Legal Framework: The post-judgment phase is governed by various legal statutes, including Family Code Section 916, and case laws like Grappo (1991). These provide a framework for understanding when and how reimbursement claims can be made.

Key Takeaways: The post-judgment period in family law cases can be complex, and understanding the legal nuances of reimbursement during this phase is essential.

Understanding Reimbursement in Family Law: Pre-Marriage and During Marriage

Navigating reimbursement issues in family law, especially concerning actions before and during marriage, can be challenging. This post aims to demystify these complexities and explain the legal framework governing them.

Pre-Marriage Acts: Before marriage, reimbursement depends on the existence of a valid pre-marriage agreement, as outlined in Family Code Section 1600. Without such an agreement, typically, there is no reimbursement claim recognized in family law.

During Marriage: During marriage, several scenarios may arise where reimbursement claims involving Community Property and Separate Property are pertinent:

• Community Property for Pre-Marriage Debts: Generally, there's no reimbursement except in limited situations, as observed in cases like Williams (1989) and under Family Code Sections 915, 2626, and 2641.

• Community Property for Child or Spousal Support: Reimbursement is possible only if non-exempt Separate Property income was available, or for pre-marriage arrears paid post-separation, as outlined in Sherman (2005) and Williams (1989).

• Community Property for Separate Property Debt of a Spouse: No reimbursement unless there's a breach of fiduciary duty or bad faith involved (Lister, 1984).

• Community Property for Education or Training of a Spouse: Eligible for reimbursement with interest, unless deemed unjust, guided by Weiner (2003) and Graham (2003) decisions.

Key Takeaways: Understanding the nuances of reimbursement in family law, especially regarding actions before and during marriage, is crucial. It's important to consider the specific circumstances and legal provisions applicable in each case.