Silverman v. Silverman

CourtSupreme Court of Delaware
DecidedFebruary 28, 2019
Docket188, 2018
StatusPublished

This text of Silverman v. Silverman (Silverman v. Silverman) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silverman v. Silverman, (Del. 2019).

Opinion

IN THE SUPREME COURT OF THE STATE OF DELAWARE

DAVID SILVERMAN,1 § § No. 188, 2018 Respondent Below, § Appellant, § Court Below—Family Court § of the State of Delaware v. § § File No. CS15-01396 MICHELLE SILVERMAN, § Petition No. 15-06696 § Petitioner Below, § Appellee. §

Submitted: January 16, 2019 Decided: February 28, 2019

Before STRINE, Chief Justice; VALIHURA, VAUGHN, SEITZ, and TRAYNOR, Justices, constituting the Court en Banc.

Upon appeal from the Family Court of the State of Delaware: REVERSED and REMANDED.

David C. Gagne, Esquire (argued), and Achille C. Scache, Esquire, GIORDANO, DELCOLLO, WERB & GAGNE, LLC, Wilmington, Delaware, for Appellant, David Silverman.

Shawn Dougherty, Esquire, WEIK, NITSCHE & DOUGHERTY, LLC, Wilmington, Delaware, for Appellee, Michelle Silverman.

1 The Court assigned pseudonyms to the parties under Supreme Court Rule 7(d). SEITZ, Justice:

On February 19, 1997, David Silverman (“Husband”) and Michelle Silverman

(“Wife”) signed a premarital agreement covering their financial affairs if they

divorced or died. They married in 1997 and divorced in 2015. In the post-divorce

property settlement, Husband sought to enforce the premarital agreement. The

Family Court applied the statute governing premarital agreements and found that,

although Wife voluntarily entered into the agreement, the disparity in wealth made

the agreement unconscionable. Also, according to the Family Court, Husband failed

to provide a fair and reasonable disclosure of his property or financial obligations

before Wife signed the agreement. The court refused to enforce the agreement. We

accepted Husband’s interlocutory appeal from the Family Court’s order.

Under the premarital agreement statute, unconscionability alone does not

invalidate a premarital agreement. Wife also had to prove that Husband did not

provide a fair and reasonable disclosure of his property or financial obligations.

Because the Family Court erred when it found Husband’s financial disclosure

insufficient, we reverse and remand to the Family Court to enforce the premarital

agreement.

I.

Wife has a bachelor’s degree in communications. Before Husband and Wife

married in 1997, Wife was employed using her communications degree and lived

2 with her parents. She planned to quit her job and move to Colorado. Husband has

an associate’s degree and worked in his family’s business. A few months after they

became romantically involved, in the spring of 1996 Wife moved in with Husband

to live in Husband’s apartment attached to his parents’ home.

Husband and Wife planned a secret wedding in Las Vegas, Nevada. About a

month before the wedding Husband gave Wife a premarital agreement with terms

favorable to Husband, who had more assets and income potential in the family

business than Wife. Under the agreement, each party waived alimony and agreed to

retain separate “title, management, and control of the estates owned by them” and

“all increases or additions thereto.”2 They also agreed that upon death neither party

would make a claim against the other or their estate “by inheritance, descent, dower,

curtesy, or maintenance,” including any claim to increases to the estates during their

lifetimes.3 Further, any property that either party acquired after marriage would be

“held by the respective party as though this respective party had acquired it before

the solemnization of the said marriage.”4

Husband suggested that Wife consult an attorney at his expense to review the

agreement. Wife retained an attorney from a list of attorneys provided by Husband.

Wife does not argue he was conflicted. Wife’s attorney explained the downsides to

2 App. to Opening Br. at A400-07 (Premarital Agreement). 3 Id. 4 Id. 3 Wife of entering into the agreement and asked Husband’s attorney for substantive

changes to benefit Wife,5 but Husband’s attorney refused all changes except a

provision relieving Wife of any debts incurred by Husband before or during the

marriage.6

The day before the couple planned to leave for their Las Vegas wedding, Wife

met with her attorney to review the agreement. The same day, before Wife met with

her attorney, Husband gave Wife a summary of his assets and liabilities.7 The record

is unclear when Wife’s attorney received Husband’s disclosure, but the attorney had

a copy when he met with Wife to review the agreement.8 In the disclosure Husband

and Wife summarized their assets and liabilities.9 Wife’s attorney advised her the

agreement was not in her best interests and she should not sign it. Anticipating this

5 Id. at A408-09 (Attorney Letter). In the letter to Husband’s attorney and copied to Wife, Wife’s attorney pointed out how the agreement disadvantaged Wife in the event of divorce or death because “the party’s [sic] expect or otherwise intend for [Wife] to act as a ‘homemaker’, both she and any children of this union shall require significant financial security, as both of our client’s [sic] have agreed that [Wife] will take herself out of the work force [sic] to assume her role as ‘homemaker’ and as a result, she has given up her job stability, accrued retirement benefits, and prospected for future advancement if she were to continue full-time employment.” Id. Wife’s attorney hoped that once he received Husband’s financial disclosure, “it should not be difficult to arrive at a fair and equitable ‘financial formula’ to ensure [Wife]’s financial future….” Id. 6 Id. at A415 (Attorney Letter) (“In regard to the substance of the Agreement, my client is not amenable to amending the document as drafted to provide the stated benefits to your client in the event of his death or termination of the marriage by divorce.”). 7 Id. at A44 (Hearing Tr., at 35). 8 Husband’s attorney may have sent the asset summary to Wife’s Attorney a few days before. See id. at A413 (Attorney to Attorney letter listing assets). 9 Id. at A406-07 (Summary of Assets and Liabilities). 4 day might come, her attorney also requested she sign an acknowledgement which

provided as follows:

I, [Wife], on this 19th day of February, 1997, hereby understand and acknowledge that I will be signing an Ante-Nuptial Agreement on this day, affecting statutory rights regarding alimony, property division, debt allocation, my elective share in my future husband’s estate in the event of his death, as well as any other lawful right arising from my intended marriage to [Husband].

I have sought the assistance of [Wife’s Attorney] in explaining these rights and my waiver pursuant to the aforementioned Ante- Nuptial Agreement. I have been advised by [Wife’s Attorney], that I will be waiving most of my statutory rights to property acquired during the marriage, any right to alimony, the right to have my Husband be responsible for any debt incurred in my sole and individual name during the marriage, as well as my statutory rights to my husband’s estate in the event of his death.

[Wife’s Attorney] has advised me that this Ante-Nuptial Agreement is not in my best interests. After careful consideration of the Ante-Nuptial Agreement, I have no further questions, concerns, or revisions regarding said Agreement.10

Against her attorney’s advice, Wife signed the premarital agreement and the

acknowledgement on February 19, 1997.

The couple married on February 23, 1997 in Las Vegas without telling friends

or family. According to Wife, the plan to keep the wedding a secret was Husband’s,

and Wife was “a little hesitant” to have a secret wedding.11 Wife testified that

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Silverman v. Silverman, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silverman-v-silverman-del-2019.