15 Jul Financial Disclosures in a Prenuptial Agreement
Financial Disclosures in a Prenuptial Agreement: What Must Be Revealed and Why It Matters
When couples in Miami consider marriage, a prenuptial agreement—or “prenup”—often enters the discussion, especially for those with significant assets, children from prior marriages, or business interests. One of the most critical elements in drafting a valid and enforceable financial disclosures in a prenuptial agreement is ensuring full transparency. Failing to meet this requirement can render the entire agreement vulnerable to future legal challenges.
What Are Financial Disclosures in a Prenuptial Agreement?
Financial disclosures in a prenuptial agreement involve each party openly and accurately listing their assets, liabilities, income, and expenses. This transparency ensures both parties are fully informed before entering into a legally binding contract that may significantly affect their rights in the event of a divorce.
Why Full Financial Disclosure Matters Under Florida Law
Florida Statutes Section 61.079 governs prenuptial agreements. Under subsection (7), a prenup is not enforceable if the party against whom enforcement is sought proves that:
- They did not execute the agreement voluntarily, or
- The agreement was unconscionable when executed and they:
- Were not provided a fair and reasonable financial disclosure in a prenuptial agreement,
- Did not voluntarily and expressly waive, in writing, any right to disclosure beyond what was provided, and
- Did not have—or reasonably could not have had—adequate knowledge of the other party’s financial obligations or property.
Case Law: What the Courts Say About Financial Disclosures
In Casto v. Casto, 508 So. 2d 330 (Fla. 1987), the Florida Supreme Court emphasized that prenuptial agreements require fair financial disclosures and that one-sided deals lacking transparency can be set aside. More recently, appellate decisions continue to underscore that an agreement may be deemed “unconscionable” if a party was misled or inadequately informed about their spouse’s finances.
What Needs to Be Disclosed?
Under Florida law and best practices, financial disclosures in a prenuptial agreement should include:
- Bank account balances
- Real estate holdings
- Stocks and bonds
- Business interests and partnerships
- Vehicles and valuable personal property
- Debts and liabilities
- Income from all sources
Both parties should ideally provide sworn financial affidavits, supported by documentation such as tax returns, bank statements, and appraisals. In many Miami prenup cases, attorneys recommend a separate financial schedule be attached to the agreement and initialed by both parties.
What Happens If Disclosure Is Incomplete or Inaccurate?
Courts will scrutinize prenups where there’s evidence that one party concealed assets or significantly undervalued them. If found, the court may:
- Invalidate the entire agreement, or
- Refuse to enforce specific provisions, such as alimony waivers or property division terms
In Miami-Dade County, judges are particularly sensitive to signs of coercion or manipulation, especially in high-stakes divorces or when one party lacked legal representation.
Miami-Specific Concerns: Bilingual and Multinational Issues
Given Miami’s diverse population, it’s common for one or both parties to be foreign nationals or speak English as a second language. In such cases, financial disclosures in a prenuptial agreement should be translated and reviewed in the party’s native language, and interpreters should be used during negotiations. Courts have set aside prenups when one party didn’t understand the terms due to a language barrier.
Common Pitfalls to Avoid
- Signing the agreement too close to the wedding date
- Failing to attach financial schedules
- Inadequate translation or explanation for non-English speakers
- General or vague asset descriptions (“business interests” instead of detailing the name, value, and income from the business)
How a Miami Prenuptial Agreement Lawyer Can Help
A family law attorney in Miami can guide you through full and proper financial disclosures in a prenuptial agreement, ensure compliance with Florida Statutes § 61.079, and prepare a document tailored to your unique situation. This legal guidance becomes especially important in high-asset marriages or where family-owned businesses and real estate are involved.
FAQs
Is a prenup valid if my spouse didn’t disclose all their assets?
No. If you can prove the lack of disclosure and that it significantly impacted your decision to sign, the court may deem the agreement unenforceable under Fla. Stat. § 61.079(7).
Do I need a lawyer to draft or review a prenuptial agreement in Florida?
While not legally required, having independent legal counsel is strongly recommended. It bolsters enforceability and helps ensure both parties fully understand the agreement.
How early should I sign a prenup before the wedding?
Ideally, the prenup should be finalized and signed at least 30 days before the wedding to avoid claims of coercion or duress.
Can financial disclosures be waived?
Yes, but the waiver must be voluntary, written, and express. Courts still scrutinize such waivers for fairness.
Is a prenuptial agreement public record in Florida?
No. A prenup only becomes part of the public court record if it’s filed during divorce or legal proceedings.