When one first hears the terms "family law" and "contract law," it may sound like two completely different areas of law, with one dealing with domestic relations and the other relating more to corporate business deals. However, the family law courts in Florida are treating agreements made by parties in a family law case more and more like contracts every year. The courts are trending towards the idea that if two parties in a family law case knowingly and voluntarily make an agreement, they will be held to that agreement in a similar way that two businessmen would be held to a contract for the sale of goods.

This concept of using contract law in divorce cases applies to prenuptial, postnuptial, marital settlement agreements, and paternity agreements. The appellate courts in Florida are enforcing this concept by striking down trial courts' decisions to rewrite agreements in family law cases. For example, in the recent case of Seawell v. Hargarten, 28 So.3d 152 (Fla 1st DCA 2010), the parties' Marital Settlement Agreement required the husband to pay the wife $65,470 and transfer 50% of his shares from a mutual fund by August 1. When August 1 rolled around the former husband still owed the wife $16,443 and still had not transferred the shares from his mutual fund. He did not have enough cash to pay the balance so he tried to satisfy the former wife by transferring her 100% of the mutual fund, which would leave him owing her around $1,700. The former wife filed a motion to enforce and the trial court ordered that the former husband transfer 100% of the mutual fund and pay the remaining cash balance. The former wife appealed the ruling and the appeals court agreed with her.   They said that the parties' marital settlement agreement created property rights that the trial court could not disturb or modify regardless of the financial positions of the parties. The appeals court treated the marital settlement agreement just like a contract and required performance of the contract as it was spelled out in the marital settlement agreement.   Neither the former husband, nor the trial court could change it. The husband was ordered to transfer 50% of the mutual fund and to pay the $16,433 in cash to the wife per the original terms of the agreement.

Previously on this blog we have discussed the question of, "What is a Marital Settlement Agreement?"  In a Florida divorce, a marital settlement agreement encompasses all of the terms and/or conditions of the parties divorce settlement.   These terms include the equitable distribution of the marital debts and assets, the alimony or child support obligations of the parties, and other miscellaneous factors which the parties may agree to.  Marital settlement agreements are entered into by agreements of the parties.  But what happens if one of the parties later wishes to set aside that agreement that they signed?

It is important to realize that marital settlement agreements are binding.  It is essential to consult an expert Florida family law attorney about the terms of your marital settlement agreement before signing it because you will be bound by what is in that agreement.  There are only limited amounts of ways to get that agreement set aside, or voided. 

If a Final Judgment has yet to be entered in your case, your agreement can be set aside only if the legal prerequisites have not been followed, or there is there is some kind of overreaching, fraud, duress, coercion, concealment, or misrepresentation.  An expert Tampa family law attorney can discuss what legal prerequisites must be followed, such as the need for the agreement to have adequate consideration, mutual consent, legal purpose, and compliance with the Statute of Frauds.  A Florida divorce attorney can also explain if the facts of your case indicate any fraud, duress, unfairness, or lack of financial disclosure, which could be a basis to set aside your agreement.

If a Final Judgment has been entered in your case, your agreement can only be set aside under Florida Family Law Rule of Procedure 12.540, which contemplates fraud, misrepresentation, mistake, or newly discovered evidence.  Marital settlement agreements are difficult to challenge in court once signed by both parties.  Make sure you contact a Florida family law attorney before signing any agreement, or if you have concerns about your already executed marital settlement agreement.