206 A.3d 825
Del.2019Background
- In 1997 David and Michelle Silverman signed a written premarital agreement before a secret Las Vegas wedding; Michelle was advised by independent counsel who recommended she not sign, but she signed an acknowledgement and the agreement.
- The agreement waived spousal support and allocated post-marital property to remain separate, among other broad waivers favorable to David (Husband).
- Husband provided a summary disclosure of assets and liabilities before signing; Wife later alleged the disclosure had errors/omissions (car title, $3,000 life policy, misdescribed land interest) and that disclosure came too close to signing.
- The parties divorced in 2015; Wife sought to set aside the premarital agreement claiming involuntariness, unconscionability, inadequate counsel, and inadequate financial disclosure.
- The Family Court found the agreement voluntary but unconscionable and that Husband’s disclosure was insufficient; it refused enforcement. Husband appealed.
- The Delaware Supreme Court reversed, holding that under 13 Del. C. § 326 the challenger must show both unconscionability and inadequate disclosure, and that Husband’s disclosure met the statute’s “fair and reasonable” standard.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether unconscionability alone can invalidate a premarital agreement under § 326 | Silverman (Wife): unconscionability (extreme wealth disparity) should be sufficient | Husband: statute requires unconscionability plus inadequate disclosure; voluntariness and counsel advise present | Court: § 326 is conjunctive—unconscionability alone does not invalidate; challenger must also prove lack of fair and reasonable disclosure, no written waiver, and lack of adequate knowledge |
| Whether Husband provided a "fair and reasonable" disclosure of assets/obligations before signing | Wife: disclosure was untimely, contained material errors/omissions (car title, life policy, land interest) and thus inadequate | Husband: disclosures gave a general and approximate picture of net worth; errors were immaterial and did not mislead; Wife had independent counsel | Court: Disclosure met the statutory standard (general/approximate net-worth); the listed errors were immaterial and timing did not render disclosure unfair; agreement must be enforced |
Key Cases Cited
- Stewart v. Stewart, 41 A.3d 401 (Del. 2012) (standard of appellate review in Family Court matters)
- Hughes v. Peterson, 41 A.3d 395 (Del. 2012) (unconscionability of premarital agreement decided as a question of law)
- Matter of Estate of Thies, 903 P.2d 186 (Mont. 1995) (describing disclosure as a general and approximate statement of net worth under UPAA)
- Wilson v. Moore, 929 S.W.2d 367 (Tenn. Ct. App. 1996) (inadvertent nondisclosure or undervaluation not fatal where disclosure provides an essentially accurate understanding of holdings)
