History
  • No items yet
midpage
138 A.D.3d 30
N.Y. App. Div.
2016
Read the full case

Background

  • Jacob and Alexandra Gottlieb negotiated a detailed prenuptial agreement over ~18 months before marrying in May 2007; both had independent counsel (wife signed against her counsel’s advice).
  • Agreement defined broad categories of separate property, waived equitable distribution, provided $300,000/year distributive payments (funded during marriage), conditional spousal maintenance ($12,500/mo while a child under 4), free luxury housing and health insurance while minor children reside with wife, and certain inheritance provisions.
  • Parties separated; husband filed for divorce in 2012. Wife pleaded counterclaims to invalidate the prenup in whole (overreaching / manifest unfairness), to rescind an apartment-price typo, and to challenge maintenance and property provisions as unfair or unconscionable.
  • On cross-motions for partial summary judgment the motion court dismissed some counterclaims but reserved trial on whether the maintenance provisions were fair when made and now unconscionable; both parties appealed.
  • The Court (majority) upheld the prenup in full: found no overreaching, deemed the terms not manifestly unfair and maintenance provisions fair when made and not currently unconscionable; vacated and remanded the interim counsel-fee award for clarification of child-related fee allocation.

Issues

Issue Gottlieb (Plaintiff) Argues Lumiere Gottlieb (Defendant) Argues Held
Validity of prenup (overreaching / manifest unfairness) Prenup is a negotiated, counselled, voluntary contractual agreement presumptively valid Husband overreached in negotiations (bait-and-switch, pregnancy pressure), producing manifestly unfair terms Prenup valid; no factual basis for overreaching; agreed process, counsel and disclosures rebut claim
Property-distribution provisions (waiver of equitable distribution & broad separate-property scope) Parties freely contracted to alter statutory scheme; terms enforceable Provisions are inequitable given wife’s role as primary caregiver and contribution to asset appreciation Enforceable; not set aside — no demonstration of overreaching or manifest unfairness
Maintenance provisions (fairness at execution; unconscionability now) Maintenance terms were fair when made and meet statutory standard; not unconscionable now Waiver and limited conditional support are unfair given wife’s caretaker role and current circumstances Maintenance provisions were fair when signed and are not presently unconscionable; summary disposition appropriate
Interim counsel fees despite prenup waiver Prenup waiver does not bar fees for child-related litigation; fee award must be apportioned Wife seeks fees for child-related and occupancy motions despite waiver Fee award vacated and remanded to determine the portion attributable to child-related matters; waiver does not bar child-related fee awards

Key Cases Cited

  • Christian v. Christian, 42 N.Y.2d 63 (N.Y. 1977) (establishes equitable review for marital agreements: relief where settlement is "manifestly unfair" due to overreaching)
  • Matter of Greiff, 92 N.Y.2d 341 (N.Y. 1998) (discusses when burden may shift to proponent of agreement because of premarital inequality; recognizes fiduciary considerations among engaged couples)
  • Levine v. Levine, 56 N.Y.2d 42 (N.Y. 1982) (clarifies that both overreaching and manifest unfairness must be shown to set aside agreements)
  • Anonymous v. Anonymous, 123 A.D.3d 581 (1st Dep't 2014) (describes high burden to set aside prenup and standards for maintenance provisions)
  • Barocas v. Barocas, 94 A.D.3d 551 (1st Dep't 2012) (upholds prenup where party knowingly signed against counsel's advice; remands maintenance in some circumstances)
  • Strong v. Dubin, 48 A.D.3d 232 (1st Dep't 2008) (refuses to invalidate prenup where signing occurred against advice of counsel; failure to disclose income alone insufficient)
  • Petracca v. Petracca, 101 A.D.3d 695 (2d Dep't 2012) (distinguishes cases where poor disclosure, lack of counsel, and short review period supported vacatur of postnuptial agreement)
Read the full case

Case Details

Case Name: Gottlieb v. Gottlieb
Court Name: Appellate Division of the Supreme Court of the State of New York
Date Published: Jan 28, 2016
Citations: 138 A.D.3d 30; 25 N.Y.S.3d 90; 2016 NY Slip Op 00613; 311197/12 13419
Docket Number: 311197/12 13419
Court Abbreviation: N.Y. App. Div.
Log In
    Gottlieb v. Gottlieb, 138 A.D.3d 30