According to a recent decision by the Supreme Court of Maryland, marital settlement agreements between divorcing spouses are no different than any other contract and won't be considered binding and enforceable unless all the elements generally required for a valid contract are present.
In Pattison v. Pattison, the Court addressed a situation in which a divorcing wife sent her husband a written, signed Voluntary Separation and Property Settlement Agreement for his review and consideration, with a cover letter stating that a condition of the agreement was that the documents be executed that same day.
The husband signed and returned the Agreement, but did not do so until several days after the date set forth in the cover letter. The husband then asked the Court to enter a final divorce decree based on the signed Agreement. The wife responded that since the husband failed to timely accept her settlement offer, it was a nullity and no agreement had, in fact, been reached.
The Court agreed with the wife, stating that agreements between divorcing spouses are analyzed under the same principles as other contracts, including the requirement of mutual assent, which, in turn, requires an offer and acceptance of the agreement's terms. An offer can come with conditions for acceptance. In this case, the wife’s offer was conditioned on the husband signing the Agreement by a certain date. Accordingly, the Court found there to be no agreement at all, as the husband had not timely accepted the wife’s offer.
This decision makes it clear that divorcing spouses need to approach their negotiations and proposed agreements as if they were any other individuals or businesses entering into a contract and ensure that all required elements of a contract – including a valid offer and acceptance – are satisfied.
If you subscribe to The Daily Record, you can click here to read its article about this case where Ferrier Stillman is quoted.
If you have questions about this case or any other matters relating to divorce, please contact Ferrier Stillman or Keri Kemmerzell at Tydings.