Dahms v. Dahms

40 Pa. D. & C.3d 78, 1985 Pa. Dist. & Cnty. Dec. LEXIS 134
CourtPennsylvania Court of Common Pleas, Bucks County
DecidedApril 10, 1985
Docketno. AO6-83-63997-E-06
StatusPublished

This text of 40 Pa. D. & C.3d 78 (Dahms v. Dahms) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Bucks County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dahms v. Dahms, 40 Pa. D. & C.3d 78, 1985 Pa. Dist. & Cnty. Dec. LEXIS 134 (Pa. Super. Ct. 1985).

Opinion

RUFE, J.,

Plaintiff initiated this action to set aside the conveyance of a marital residence pursuant to a post-nuptial agreement between the parties. The bases of such requested relief is that the agreement executed October 21, 1983 is invalid in that defendant exerted undue influence on plaintiff in securing her signature to the document, that acquiescence in the contract was fraudulently obtained, that the contract was supported by inadequate consideration, and a mistake of law, or fact, occurred to the detriment of plaintiff. Defendant has responded that the deed in question should not be set aside, that the agreement in question was a valid and enforceable contract between the parties.

FINDINGS OF FACT

1. Plaintiff and defendant were married on February 5, 1972, when plaintiff was 17 years old.

2. At the time of the marriage, plaintiff was in the eleventh grade and left school at that time.

3. The parties have one child, Jason Dahms, age 12.

[80]*804. On August 29, 1975, the parties purchased real estate located at 147 N. 9th Street, Quakertown, Pa., taking title as tenants by the entireties.

5. Purchase price of the above property was $30,500. Of this amount, plaintiffs father provided the down-payment and settlement costs of $6,600.

6. During the term of the marriage, plaintiff provided the services of mother and homemaker in addition to being employed full or part-time throughout. Income from plaintiffs employment was used for marital expenses.

7. On October 21, 1983, plaintiff and defendant executed an agreement providing for conveyance of the jointly held real estate from plaintiff to defendant for the consideration recited of one dollar and a waiver of all plaintiffs rights to an equitable distribution of marital property (including this parcel of real estate) under the Divorce Code of 1980.

8. Plaintiff believed, that the signing of the deed and agreement were only to effect the change of names listed on the deed to the family residence and was unaware of any effect the transaction might have on her property rights under the Divorce Code of 1980.

9. At the time the agreement and deed were executed, plaintiff understood that the parties had agreed to a temporary separation during which time plaintiff would seek counselling.

10. Copies of the documents executed October 21, 1983, were not provided to plaintiff at that time.

11. On October 31, 1983, plaintiff left the marital residence on a temporary basis while she sought counselling.

12. Defendant filed a complaint in divorce with 1 this court on November 2, 1983.

[81]*8113. Paragraph 8 of the divorce complaint states: “The parties have not entered into a written agreement as to . . . property division.”

14. The court issued a divorce decree on February 28, 1984, totally unaware of the existence of the October 21, 1983 agreement and, therefore, not incorporating any written agreement.

15. When the parties executed the October 21, 1983 agreement, plaintiff was not represented by legal counsel, nor advised of her property rights under the Divorce Code.

16. In acquiescing to the agreement, plaintiff relied on defendant to make provisions not inconsistent with her interests and did not believe she required independent counsel’s advice.

17. Plaintiff also did not believe that she had any choice in the execution of the deed and agreement, since the papers were formalized for signature and she did not ■ want to question defendant’s arrangements.

18. Defendant at all times was cognizant of the financial position of the family and specifically the value of the jointly held residence.

19. No disclosure was made to plaintiff concerning the.financial status and assets of defendant and the family.

20. Most of the major financial decisions for the parties were made by defendant: e.g., construction of an addition to the family residence, application for car and other loans and purchase of vehicles. Plaintiff.was routinely required to sign joint tax returns and admits that she did not read the returns, but relied on defendant to act in their best interest.

21. Fair market value of the parties’ residence at the time of separation, October 1983, was $66,000 subject to a mortgage balance of $21,317.

[82]*8222. The one-doUar consideration recited in the deed was the only consideration received by plaintiff in return for conveyance of the property.

23. Following the separation, plaintiff only removed personal items and gifts specifically for herself from the house and received no portion of the household furnishings or appliances.

24. Presently, plaintiff is contributing $60 per week toward the support of the minor child and ex-. ercises her visitation rights respecting the child.

25. When plaintiff signed .the deed and agreement and separated from defendant, she had no bank accounts or money.

26. Plaintiffs earnings during October 1983 were approximately $154 and $175 per week. At the time of trial, plaintiff was earning $4.75 per hour for 40 hours per week.

DISCUSSION

At issue here is the validity of the parties’ post-nuptial agreement of October 21, 1983. The agreement herein is a post-nuptial agreement as opposed to a separation agreement by the nature of the document, inasmuch as the agreement purports to settle property rights definitely, not merely provide for separation and support. Commonwealth ex rel. Dischenger v. Dischenger, 23 Bucks Co. L. Rep. 194 (1972).

The law is well-settled that ante-nuptial and post-nuptial agreements are presumably valid and the burden of proving the agreement invalid, by clear and convincing evidence, is on the party seeking to avoid or nullify the agreement. Ratony Estate, 443 Pa. 454, 277 A.2d 791 (1971). The evidence required must show that the other spouse “ ‘at the time of the agreement made neither (a) a reason[83]*83able provision for the intended spouse, nor (b) a full and fair disclosure of his (or her) worth.’ Hillegass Estate, 431 Pa. 144, 150, 244 A.2d 672, 675 (1968).” In Re Estate of Kester, 486 Pa. 349, 353, 405 A.2d 1244, 1246 (1979). Reasonableness of such provisions is to be determined at the time of the making of the contract, not from hindsight perspective. Ratony, supra; Kaufmann Estate, 404 Pa. 131, 171 A.2d 48 (1961). Parties to such agreements do not deal from standard “arms-length” positions as with most contracts, “but. stand in a relationship of mutual confidence and trust that calls for the highest degree of good faith.” McClellan Estate, 365 Pa. 386, 407, 75 A.2d 595, 598 (1950).

The agreement challenged by this litigation is very one-sided and not only fails to make provision for plaintiff, but makes no reference to the disclosure required to ensure the validity of the agreement. Disclosure is not a fact which the court will infer from the mere existence of a marital relationship. Hahn Estate, 7 D.&C.3d 438 (1978).

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Related

In Re Estate of Kester
405 A.2d 1244 (Supreme Court of Pennsylvania, 1979)
McClellan Estate
75 A.2d 595 (Supreme Court of Pennsylvania, 1950)
HOFFMAN v. PITTSBURGH
75 A.2d 649 (Supreme Court of Pennsylvania, 1950)
Kaufmann Estate
171 A.2d 48 (Supreme Court of Pennsylvania, 1961)
Quashnock v. Frost
445 A.2d 121 (Superior Court of Pennsylvania, 1982)
Ratony Estate
277 A.2d 791 (Supreme Court of Pennsylvania, 1971)
Hillegass Estate
244 A.2d 672 (Supreme Court of Pennsylvania, 1968)
Shane v. Hoffmann
324 A.2d 532 (Superior Court of Pennsylvania, 1974)

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Bluebook (online)
40 Pa. D. & C.3d 78, 1985 Pa. Dist. & Cnty. Dec. LEXIS 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dahms-v-dahms-pactcomplbucks-1985.