TN Wife’s Contest of Prenup Denied | She Saw Business

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

In re Estate of Carl Robin Geary – Tennessee Prenuptial Agreement 

Susan Geary, the widow, and Carol Geary, Sr, the Decedent, signed a prenuptial agreement the day of their marriage in November of 1996. They did not have children together but the decedent had two children from a previous marriage, Carl Robin Geary, Jr and Rachel Geary Lawson. The decedent died on March 10, 2010 intestate.

The prenuptial agreement contains six pages, with signatures of both parties and notarizations of the two signatures. Within the agreement are numerous requirements. Section 2 provides that each party will retain his or her separate property, presently owned or acquired. The decedent’s children filed a petition on May 10, 2010 and the widow filed a petition to set aside exempt property, year’s support and elective share, in June of 2010. The wife stated the prenuptial agreement was not enforceable noting that she did not enter into the agreement knowledgeably.

A hearing was held in May of 2011. The daughter testified that the father operated the trucking business out of his home. Employees came in and out of the home daily. The decedent also had property about five miles away where some equipment is parked. The daughter presented numerous checks written or signed by the widow from the business account. The son testified that he agreed with his sister’s testimony.

The wife testified that the husband approached her about the prenuptial agreement claiming he did not want the wife to take half of his business if they decided to divorce. She testified the decedent worried about his business and told her it was going under. She stated that the decedent told her that the prenuptial agreement would only apply if they divorced. She testified the prenup she signed was only two pages in length. She stated she never looked at the business accounts or bank statements and had no idea what he owned.

The trial court issued its decision in June of 2011. It noted the widow had worked full-time in home health field throughout the marriage and the decedent ran his business separately from the home. It stated the widow could clearly see the business the husband had since she lived in the home for 11 months prior to being married. It ruled there was no fraud or duress contributing to the signing of the agreement.

The appeals court reviewed the case. In the case, it stated the issue is whether the decedent’s children proved that the widow had independent knowledge of the full nature, extent, and value of the proponent spouse’s holding. The appeals court stated the lower court noted this in its fact-finding that the wife could see the extent and nature of the business. The lower court found the widow knew all she needed to know that he owned a business and wanted to keep the business separate.

Though the wife testified she did not know the value of the decedent’s business, the appeals court stated that her credibility was lacking, as noted by the lower court. The appeals court would not assess the witness creditability without evidence of the contrary. It affirmed the lower court’s ruling that the prenuptial agreement was effective.

NO M2011-01705-COA-R3-CV, February 28, 2012.

See original opinion for exact language.  Legal citations omitted.

Memphis divorce lawyer, Miles Mason, Sr., JD, CPA practices family law exclusively and is founder of the Miles Mason Family Law Group, PLC, which handles Tennessee family law matters including divorce, child support, alimony, prenuptial agreements, child custody, parental relocation, child support modification, alimony modification, and divorces including business valuation and forensic accounting issues.