Postnuptial agreements can be a valuable tool for married couples in Asheville. They clarify financial expectations, protect separate property, and reduce the risk of courtroom battles if the marriage ends. But like all legal contracts, postnups only work when both parties sign with a full understanding of the facts. And in North Carolina, that starts with financial disclosure.
When a postnup is signed without full disclosure, it becomes vulnerable. What might have been a reliable framework for property division or spousal support turns into a legally questionable document. Courts in Asheville do not take this issue lightly. If one spouse withheld material information about income, debt, or assets, the entire agreement may be set aside.
The duty to be transparent isn’t just a moral one—it’s a legal requirement. Whether you’re the spouse who signed without knowing everything, or the spouse accused of hiding something, understanding how disclosure impacts enforceability is essential.
An experienced Asheville prenup lawyer helps clients avoid these pitfalls before signing and understands how to respond when disclosure is missing after the fact. This article outlines what happens when full disclosure is absent in an Asheville postnup, how the law treats concealment, and what steps couples can take to protect their agreements and their rights.
Why Full Disclosure Matters in Postnuptial Agreements
Postnups differ from other contracts in one crucial way: they are made between people who owe each other a fiduciary duty. Spouses are not just business partners. They have a legal obligation to act with honesty and fairness toward one another.
In this context, “full disclosure” means more than just listing assets. It means providing accurate, up-to-date information about:
- Bank accounts
- Real estate
- Business interests
- Retirement savings
- Income
- Liabilities
- Inheritance
- Stock options or investment holdings
- Any other material financial assets
This information must be presented in writing and exchanged before the agreement is signed.
An Asheville prenup lawyer structures postnups to require and confirm financial disclosure in a way that supports enforceability.
What Happens If One Spouse Hides Assets or Income?
If a spouse fails to disclose material financial information during the postnup process, the consequences can be severe:
1. The Agreement May Be Invalidated
North Carolina courts view incomplete disclosure as a breach of the duty of good faith. If a spouse can show they were misled, manipulated, or deprived of vital financial information, a judge may throw out the postnup entirely.
2. The Agreement May Be Partially Enforced
If only certain provisions are tainted by nondisclosure, a court may enforce the remainder of the agreement. For example, property division might be set aside, but a spousal support provision upheld.
3. The Deceived Spouse May Receive a Greater Share in Divorce
If the concealment is discovered during divorce litigation, the court may award a larger portion of the marital estate to the wronged spouse as an equitable remedy.
4. Attorney’s Fees or Sanctions May Be Awarded
Judges have the discretion to order one spouse to pay the other’s legal fees if deception is proven. In extreme cases, perjury or fraud may also trigger civil or criminal consequences.
An Asheville prenup lawyer anticipates these issues and protects both parties by ensuring disclosure is accurate, documented, and incorporated into the agreement.
Real-World Examples of Nondisclosure
Example 1: The Hidden Stock Account
Spouse A fails to disclose a stock account worth $200,000 when drafting a postnup. The agreement classifies most marital property as Spouse A’s separate property. Years later, during divorce proceedings, Spouse B discovers the account. The court finds that the postnup was signed without fair disclosure and invalidates the entire agreement.
Example 2: Concealed Business Income
Spouse A owns a business and provides only a personal tax return during the postnup process. Spouse B later discovers that the business was generating significantly more income than reported. The court finds that Spouse B could not have made an informed decision about alimony and adjusts the divorce settlement accordingly.
An Asheville prenup lawyer ensures business valuations and account statements are fully disclosed during the postnup process.
What Is “Full and Fair” Disclosure?
There is no fixed dollar threshold for what must be disclosed. Instead, the law looks at materiality. Would a reasonable person want to know about the asset or liability before waiving rights or signing an agreement?
To meet this standard, spouses should:
- Prepare detailed financial statements
- Include tax returns (preferably three years)
- Provide account statements for all major assets and debts
- Disclose ongoing legal or financial obligations
- Update the other spouse if anything changes before the agreement is signed
An Asheville prenup lawyer includes a disclosure exhibit with the postnup, signed and acknowledged by both spouses.
Waivers of Disclosure: Are They Valid?
Some postnups include a clause stating that one or both parties waive their right to full disclosure. While this can be enforceable in limited circumstances, it’s risky.
A waiver might look like:
- “Each party waives the right to receive a full accounting of the other’s financial condition and acknowledges their independent satisfaction with the information provided.”
Courts in Asheville will still look at whether the waiver was:
- Knowingly and voluntarily made
- Based on some general knowledge of the other spouse’s finances
- Not used to hide substantial or material information
A waiver will not protect a spouse who deliberately concealed important assets. It also won’t override the basic duty to be truthful.
An Asheville prenup lawyer discourages blanket waivers unless both spouses have meaningful awareness of each other’s finances and independent legal counsel.
How Courts Evaluate Disclosure Failures
When reviewing a postnup challenged on the grounds of nondisclosure, North Carolina courts consider:
1. Was There a Fiduciary Relationship?
Between spouses, the answer is always yes. This heightens the duty of disclosure.
2. Was Disclosure Requested?
If a spouse requested specific documents and was refused, it shows intentional withholding.
3. Was the Information Material?
Was the omission something that would have changed the other spouse’s decision to sign?
4. Was There Evidence of Fraud or Misrepresentation?
Courts distinguish between mere omission and intentional deceit.
5. Was the Agreement Otherwise Fair?
Even if disclosure was imperfect, a court may enforce the agreement if it was substantively fair.
An Asheville prenup lawyer prepares agreements with these review factors in mind.
Protecting the Agreement: Best Practices for Disclosure
1. Include a Written Financial Statement
Each spouse should provide a detailed, itemized statement listing:
- Asset type
- Value
- Ownership
- Supporting documentation (such as account statements or deeds)
2. Use Exhibits and Schedules
Attach the financial statements to the agreement as exhibits. Each spouse should initial and sign them.
3. Include Acknowledgment Language
The postnup should include clauses such as:
- “Each party acknowledges that they have received a full and fair disclosure of the other’s financial condition.”
4. Retain Legal Counsel
Independent counsel for both parties not only helps with enforceability—it ensures both spouses understand what’s been disclosed.
5. Avoid Generalizations
Phrases like “I trust you” or “I already know what you have” will not protect the agreement if financial facts are missing.
An Asheville prenup lawyer formalizes these protections in every agreement.
What to Do If You Suspect Nondisclosure After Signing
If you suspect your spouse withheld material information during the postnup process, take the following steps:
1. Gather Evidence
Start compiling bank records, tax returns, emails, and other documentation that may support your concern.
2. Consult an Attorney
An Asheville prenup lawyer can review your agreement and assess whether nondisclosure may affect its validity.
3. Consider Negotiating a New Agreement
In some cases, the best remedy is a revised postnup based on full disclosure and mutual agreement.
4. Prepare for Litigation (If Necessary)
If divorce is on the table and fraud is discovered, the court may not only reject the postnup—it may adjust property division and support based on the misconduct.
When Disclosure Failures Lead to Divorce
Some marriages can’t recover from financial secrecy. If a postnup was built on half-truths, and trust is gone, a divorce may be inevitable.
The postnup may still provide some value if:
- Only certain clauses are tainted
- The overall agreement is still fair
- Both spouses are willing to negotiate
But if one party signed under false pretenses, the court may disregard the agreement entirely.
An Asheville prenup lawyer helps evaluate the strength of your agreement and whether litigation is likely to challenge its terms.
Frequently Asked Questions
Is a postnup enforceable if there wasn’t full disclosure?
Possibly not. North Carolina courts require full and fair disclosure of financial information. If material assets were hidden, the agreement may be invalidated.
What counts as “material” financial information?
Anything that could reasonably influence the other spouse’s decision to sign—such as income, significant assets, debts, or future obligations.
Can we waive disclosure in the agreement?
Waivers are allowed, but courts may still review whether the waiver was knowing, voluntary, and not used to hide material information.
What happens if we discover hidden assets after signing?
The agreement may be challenged in court. If fraud is proven, the court could invalidate it or reassign property during divorce.
Do we need to attach financial statements to the postnup?
It’s highly recommended. Attaching and signing disclosures as exhibits makes the agreement more enforceable.
Can I fix a postnup if it was signed without full disclosure?
Yes, you may be able to revise or replace the agreement with a new one based on updated, accurate information.
Is nondisclosure the same as fraud?
It can be. If a spouse intentionally hides assets or income, the court may treat it as fraudulent concealment, which undermines the agreement.
Can we renegotiate the postnup if I learn new financial information?
Yes. Both spouses can amend or revoke the agreement by mutual consent.
Do both parties need lawyers for the postnup?
It’s not required, but courts are more likely to enforce the agreement when both spouses had independent legal counsel.
How do I know if my spouse disclosed everything?
Request full documentation and ask specific questions. If you’re unsure, consult an Asheville prenup lawyer to assist with due diligence before signing.
The McKinney Law Group: Thoughtful Postnup Solutions for Asheville Marriages
Whether you’re addressing a business, inheritance, or new financial realities, a postnuptial agreement can protect both spouses and reduce future conflict. We serve Asheville clients with discretion and care.
Call 828-929-0642 or email [email protected] to get started.