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Pepe and Arifah have been dating for one year

Law

Pepe and Arifah have been dating for one year. Pepe, 25, a professional soccer player, earns $12 million a year and has about $9 million in assets. Arifah, 21, an Instagram model, earns $25,000 a year and has about $1,000 in money assets and resides in a one-bedroom rental apartment worth $2,000 per month in rent. After a rigorous soccer practice one day, Pepe proposes marriage to Arifah, and professes his unyielding love for her. He hands Arifah an engagement ring valued at $120,000. Arifah immediately tells Pepe she loves him, but that she is unsure about marriage because they have only been dating for a year. Arifah explains that she likes her modeling career and believes that she will become a movie star soon once Hollywood movie executives discover her modeling career one day. Pepe explains that he will take good care of her if she marries him, but advises Arifah that she will have to sign a prenuptial agreement before they marry or else his family will not approve of their marriage. Arifah happily agrees to sign a prenuptial agreement and marry Pepe.

Pepe’s personal attorney prepares a prenuptial agreement with a list of all of Pepe’s assets and sends a signed copy to the attorney for Arifah. The property and support provisions of the agreement provide: “In the event of separation or divorce, Arifah shall be limited to receiving a one-time lump sum payment of $500,000, will not be entitled to any real estate or personal property from the marriage other than property she purchased with the personal assets she had prior to marriage, and that Arifah shall be limited to receiving spousal support of $10,000 a month for three years, regardless of Pepe’s wealth or income.” Arifah signs the agreement and sends it back to Pepe’s attorney, along with a list of all her assets, excluding the engagement ring Pepe gave her, which she wore to their wedding.

Two weeks later, Arifah and Pepe are married in a private ceremony. Fourteen months after getting married, Arifah receives word from one of Pepe’s team mates that Pepe had an affair with a flight attendant one evening during their marriage. Arifah immediately files for divorce. She asks the court to invalidate the prenuptial agreement on grounds that the agreement is unconscionable to her and argues that Pepe’s reported infidelity created a psychological hardship, causing her serious emotional harm, and warrants the agreement being invalidated. Arifah claims she stopped being an Instagram model after her marriage to Pepe and believes she likely would have landed a $20 million movie deal had she continued to model and she is entitled to be compensated for her loss of income. Arifah requests she be awarded $24,000 a month in spousal support for seven years, and ownership of the $1.5 million condo Pepe purchased for the couple to reside in after they married. Pepe argues the prenuptial agreement is valid and that he did not do any wrong.

The jurisdiction in which the couple married and resides is governed by a “Family Maintenance and Property Distribution Ordinance” that reads “If one or both parties to a marriage files for divorce within 18 months of the date of marriage, neither party shall be entitled to spousal support, family maintenance or property distribution from the other spouse, unless a valid prenuptial agreement states otherwise, or one party has been convicted of, or pleads guilty to, a felony offense involving conduct likely to cause death or serious bodily harm to the other spouse or a child. Any engagement ring shall be considered the personal property of the receiving spouse and not subject to return in the event of divorce but may be considered by a court in determining property distribution upon divorce.”

The judge has asked you to identify all the relevant legal issues and rules and to write the case opinion for the court that resolves the matter, using no more than 600 words and a font size of 12. You have 18 hours to complete and submit the report you would provide to the judge.

please be sure to answer the question using these rules:

  • Under Gross v. Gross: "Such agreements, if otherwise found to be valid, are not abrogated as to either party for marital misconduct after marriage, in the absence of an express provision in the agreement to the contrary."
  • An antenuptial or prenuptial agreement is a contract made between two parties in contemplation of marriage. The agreement provides distribution of property and sustenance alimony in event of divorce, seperation, or death.
    • Three conditions to validate and enforce agreement (3 prong test):
      • if the parties have entered freely without fraud, duress, coercion, or overreaching;
      • if there was full disclosure, or full knowledge and understanding of the nature, value and extent of the prospective spouse’s property; and
      • if the terms do not promote or encourage divorce or profiteering by divorce.
      •  
      • “In determining whether alimony is necessary, and in determining the nature, amount, and manner of payment of alimony, the court shall consider all relevant factors, including:
      • “(1) The relative earning abilities of the parties;
        “(2) The ages, and the physical and emotional conditions of the parties;
        “(3) The retirement benefits of the parties;
        “(4) The expectancies and inheritances of the parties;
        “(5) The duration of the marriage;
        “(6) The extent to which it would be inappropriate for a party, because he will be custodian of a minor child of the marriage, to seek employment outside the home;
        “(7) The standard of living of the parties established during the marriage;
        “(8) The relative extent of education of the parties;
        “(9) The relative assets and liabilities of the parties;
        “(10) The property brought to the marriage by either party;
        “(11) The contribution of a spouse as a homemaker.
      •  
      •  
      • “The parties to an antenuptial agreement are in a fiduciary relationship to one another and, *420 thus, are under a mandatory duty to act in good faith with a high degree of fairness and disclosure of all circumstances which materially bear on the antenuptial agreement”

 

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Prenuptial Agreements

Issue

The case raises questions regarding the validity of the prenuptial agreement in a dispute relating to the infidelity of one party and the lost economic opportunities of the other party. The legal questions in the case are: (1) Can a prenuptial agreement be enforced in a court of law by a party that is found to be in the wrong during divorce proceedings? (2) Can the court modify the terms of a prenuptial agreement on sharing property and alimony?

Rule

The Family Maintenance and Property Distribution Ordinance law does not allow spousal support or property distribution if divorce or separation occurred within 18 months of the agreement unless there are such provisions in the prenuptial agreement or one party is convicted or pleads guilty to a felony causing serious bodily harm to the other party.

Analysis

            Arifah filed for divorce after 14 months of marriage meaning that the state law would rely on the prenuptial agreement for property sharing depending on its validity. The prenuptial agreement is valid and enforceable because it meets the three-prong test. First, the parties agreed freely and without coercion. Second, there was full disclosure of properties involved to the best knowledge of all parties. This was evidenced by both parties appending their signature to the agreement. Third, the manner of the agreement does not promote profiteering through a divorce.  Gross vs. Gross provides that if the prenuptial agreement is deemed valid, it shall not be “abrogated as to either party for marital misconduct after marriage”. This assertion answers the first legal issue implying that the agreement between Pepe and Arifah is enforceable regardless of Pepe’s reported misconduct.

Regarding the second legal issue,  the law is categorical in that the court should considers several factors in determining the amount and nature of alimony. Arifah’s potential earning abilities from her modeling career were undermined by the marriage.  However, their age differences are minimal conferring no obvious advantage to either party save for the Arifah’s serious emotional pain. Arifah missed out on a potential $20 million deal that would have acted as her retirement benefit while Pepe earns $12 million per year giving her a substantial advantage in retirement age that is unaffected by the divorce. She retains the right to be compensated for the loss. Arifah expects an inheritance of a condo valued at $1.2 million and monthly spousal support of $24,000 which differs from Pepe’s $500,000 lump sum and $10,000 monthly spousal support. However, given the short duration of the marriage, the lost economic benefits may be less adverse to the plaintiff. Both parties have no obligation towards child-rearing and have no special needs obligation in the possession of the condo. Arifah’s standard of living was enhanced by the marriage and the court should make provisions that will reasonably maintain the status. Pepe’s assets are substantially more than Arifah’s enabling him to meet the economic needs of Arifah within the context of the fiduciary obligation he has over her. Arifah brought all her assets ($1,000) under the marriage and has no other known assets to sustain her after divorce.

Conclusion

The party at fault can still enforce a prenuptial agreement. The court has the power to vary the terms of the agreement. Accordingly, it should award Arifah the family condo valued at $1.2 and a monthly $10,000 spousal support to meet her economic needs given her new economic status, lost economic opportunities, and the ability of Pepe to meet these obligations as part of the fiduciary relationship.

 

Outline using IRAC Format

  1.                     Title: Prenuptial Agreements
  2.                  Issue: The legal issues raised in the case are:
    1.        Can a prenuptial agreement be enforced in a court of law by a party that is found to be in the wrong during divorce proceedings?
    2.       Can the court modify the terms of a prenuptial agreement on sharing property and alimony?
  3.                Rule:
    1.        The case was analyzed based on “The Family Maintenance and Property Distribution Ordinance” law.
  4.               Analysis:
    1.        Arifah filed for divorce after 14 months of marriage meaning that the state law would rely on the prenuptial agreement for property sharing depending on its validity. Gross vs. Gross provides that if the prenuptial agreement is deemed valid, it shall not be “abrogated as to either party for marital misconduct after marriage” meaning the agreement cannot be set aside.
  5.                  Conclusion:
    1.        The party at fault can still enforce a prenuptial agreement. The court has the power to vary the terms of the agreement. Accordingly, it should award Arifah the family condo valued at $1.2 and a monthly $10,000 spousal support.