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Texas mogul's wife tries to invalidate prenuptial agreement

In the state of Texas, a prenuptial agreement is a tool that both parties can use to protect certain assets. These protected assets may have been acquired before the marriage, or they may have been obtained during the marriage. Either way, the prenuptial agreement allows parties to legally document what they want to protect. In cases of high asset divorce, though, the prenup may be contested later on.

A Dallas hedge fund manager involved in a divorce battle with his wife has seen their prenup become the new focus of their split. According to the mogul, who reportedly took in about $36 million in 2010, the pair had a prenuptial agreement that stipulated that wife would receive $5 million in the event of a divorce. However, negotiations spanning two years saw the wife attempt to invalidate the prenup through more than ten different filed motions. She has purportedly sought as much as 8 times the amount specified in their prenup.

The hedge fund manager's lawyers claim the wife is suing for breach of contract; she had apparently violated the prenup herself, while at a previous trial she also claimed her husband violated it as well. A jury agreed that each party had violated it; however, the same jury also concluded that the prenup should remain in effect. A new trial is set for next June.

Sometimes, one party will try to continually invalidate a prenup in order to prolong litigation. At other times, this is done because conditions have changed since the signing of the prenup, and the party believes that alone should invalidate the document. There are conditions under which a prenup can be challenged. However, these are often very specific and difficult to prove. Either party in a case where prenups are contested can benefit from assertive representation aimed at an equitable outcome.

Source: The New York Post, "Hedge fund manager in epic divorce battle over prenup violations," Josh Kosman, Nov. 29, 2013

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Attorney Christine K. Lincoln

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