Prenup Not Enforced When Tennessee Wife Contracted Rare Condition

Tennessee law case summary on prenuptial agreements in divorce and family law from the Court of Appeals.

Sabra Elaine Ellis O’Daniel v. Rusty Wade O’Daniel  – Tennessee divorce prenuptial agreement not enforced

Prior to their 2006 marriage, the husband and wife executed a prenuptial agreement.  In the agreement, each of them waived any claim for support, maintenance, or temporary alimony, but it provided that if the marriage terminated within five years, then the wife would be entitled to $25,000 alimony for each year of marriage, which was to be offset by any joint property that she received.  During their 5-1/2 year marriage, the wife did not work outside the home.  At the time of the marriage, the husband was 44 and the wife was 33.  The husband was a successful businessman and had considerable wealth.  The wife testified that, during the marriage, the two had sex only twice, and she further testified that she discovered pornography on the husband’s computer depicting bestiality and children under 18.

About a year after the marriage, the wife was diagnosed with autoimmune neutropenia, a rare and potentially deadly condition.  She was hospitalized three times during the marriage for an extended time.  Her medical bills totaled over $431,000.  Health insurance paid over $134,000, and the parties paid over $11,000.

In 2011, the wife filed for divorce.  She alleged that the portion of the prenuptial agreement regarding temporary support or alimony was unenforceable, because if this provision were enforced, she would become a public charge.

The trial court granted the divorce on the grounds of inappropriate marital conduct.  It held that the prenuptial agreement was enforceable in its entirety, and that the husband had breached it by failing to fund a retirement account.  The Court granted the wife alimony in the amount of $150,000, which represented the minimum alimony amount called for in the agreement.  It also ordered the husband to pay the wife’s medical insurance premiums for 67 months.  Dissatisfied, both parties appealed to the Tennessee Court of Appeals.

The court first examined whether the prenuptial agreement was enforceable in its entirety.  Under Tennessee law, such agreements are normally enforceable if entered into freely, knowledgeably, and in good faith without exertion of duress or undue influence.  However, the court noted that they can be unenforceable if they would render the spouse deprived of alimony a public charge.  The court noted that this need not happen immediately.

The court cited a Florida case which made clear that it is the future likelihood of becoming a public charge which is relevant.  It also noted that the cases in which there was a change of circumstances were those in which courts held the agreements unenforceable.

In this case, the court looked at the medical evidence, and paid close attention to a physician’s opinion that the wife was not capable of employment because of her condition.  It made particular note of the fact that the wife was unable to afford medical coverage.

For these reasons, the court reversed the trial court’s determination of enforceability, since it concluded it likely that the wife would become a public charge.  And while the court of Appeals affirmed the award of 67 months of health coverage, it also opined that the length of this obligation was insufficient, and should be revisited on remand.

The Court of Appeals remanded the case, and also awarded the wife her attorney’s fees on appeal.

No. E2012-01555-COA-R3-CV (Tenn. Ct. App. June 26, 2013).

See original opinion for exact language.  Legal citations omitted.

For more information, see Tennessee Prenuptial Agreement Pros and Cons in Family & Divorce Law. Memphis divorce attorney, Miles Mason, Sr., practices family law exclusively and is founder of the Miles Mason Family Law Group, PLC.  Buy The Tennessee Divorce Client’s Handbook: What Every Divorcing Spouse Needs to Know, available on Amazon and Kindle.  To schedule your confidential consultation, call us today at (901) 683-1850.