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Devney v. Devney
295 Neb. 15
| Neb. | 2016
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Background

  • Clarence and Elizabeth Devney married in August 1998 and executed a postnuptial agreement in January 1999 containing: mutual waivers of intestate/estate rights and a property provision allocating premarital and marital assets (including an exhibit valuing Clarence’s premarital home at $250,000).
  • Elizabeth signed the postnuptial agreement without independent counsel and later contested factual circumstances of its execution and valuations.
  • Clarence sought enforcement of the postnuptial agreement in a 2014 dissolution; the district court enforced the agreement, set Clarence’s premarital interest in the marital residence at $250,000, found an $80,000 marital appreciation, and ordered an equalization payment to Elizabeth.
  • Elizabeth appealed, arguing the postnuptial property provisions are void/unenforceable, the $250,000 premarital valuation was improper, and the $250,000 setoff was incorrect.
  • The Nebraska Supreme Court reviewed whether postnuptial property agreements (not attendant to separation or divorce) are valid under Nebraska law and whether the trial court erred by relying on that agreement to value and set off the marital residence.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether postnuptial property agreements not made in connection with separation/divorce are enforceable in Nebraska Elizabeth: such postnuptial property allocations are void as contrary to common law/public policy and not authorized by statute Clarence: § 30-2316 and prior statutory amendments permit postnuptial estate/property agreements; Kopecky supports enforceability Court: Such property provisions are void where not attendant to separation/divorce; Nebraska statutes do not authorize general postnuptial property allocations absent separation/divorce
Whether the trial court properly used the postnuptial agreement to value the premarital interest and award a setoff for the marital residence Elizabeth: trial court improperly relied exclusively on the void agreement for valuation and setoff Clarence: trial court properly enforced parties’ agreement and valuation Court: Trial court abused its discretion by relying on the void property provisions; valuation and $250,000 setoff vacated and remanded for independent determination

Key Cases Cited

  • Smith v. Johnson, 144 Neb. 769, 14 N.W.2d 424 (Neb. 1944) (held postnuptial property contracts barring rights while marriage intact are void)
  • Focht v. Wakefield, 145 Neb. 568, 17 N.W.2d 627 (Neb. 1945) (reiterated invalidity of postnuptial property and inheritance agreements absent statutory authorization)
  • In re Estate of Lauderback, 106 Neb. 461, 184 N.W. 128 (Neb. 1921) (upheld separation agreements dividing property attendant to separation)
  • Snyder v. Snyder, 196 Neb. 383, 243 N.W.2d 159 (Neb. 1976) (held property agreements not in connection with separation are not binding in later dissolution)
  • In re Estate of Kopecky, 6 Neb. App. 500, 574 N.W.2d 549 (Neb. Ct. App. 1998) (Court of Appeals addressing postnuptial estate waiver provisions; distinguished by Supreme Court here)
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Case Details

Case Name: Devney v. Devney
Court Name: Nebraska Supreme Court
Date Published: Oct 21, 2016
Citation: 295 Neb. 15
Docket Number: S-15-937
Court Abbreviation: Neb.