When Can a Divorce Settlement Be Set Aside as Invalid in California?

Recently, in an unusual case, according to news reports, a Los Angeles County Superior Court Judge ruled that a divorce settlement that had been signed between an actor and his second wife is not valid because the actor was coerced into signing it after his second ex-wife threatened to leak private details from his life to the news media, thereby jeopardizing his film career.  Although this is an unusual case, there are four reasons why a divorce settlement can be set aside.

 A divorce settlement, like other negotiated agreements, can be found to be invalid due to duress, fraud, mistake of fact or law, or undue influence. When a divorce settlement is found to be invalid in court, the financial terms of the divorce have to re-determined.

marital settlement induced by duress

In California, as found in In Re Marriage of Gonzalez (1976)  57 Cal. App. 3d 736, a contract can be found to be invalid due to duress if the contract was “obtained by so oppressing a person by threats regarding the safety or liberty of himself, or of his property, or of a member of his family, as to deprive him of the free exercise of his will and prevent the meeting of minds necessary to a valid contract. .”

marital settlement induced by fraud

The elements of fraud in California are (a) misrepresentation (false representation, concealment, or nondisclosure); (b) knowledge of falsity (or “scienter”); (c) intent to defraud, i.e., to induce reliance; (d) justifiable reliance; and (e) resulting damage.’ ” (Lazar v. Superior Court (1996) 12
Cal.4th 631, 638.)   Family Law Section 2120 et seq. authorizes a dissolution judgment to be vacated where the judgment was procured by fraud or perjury.  In such cases, the interest in assuring finality of judgments is outweighed by other considerations."  (Rubenstein v. Rubenstein (2000) 81 Cal.App.4th 1131, 1152.)

mistake of fact or law

Family Code Section 2122, subdivision (e), provides: “As to stipulated or uncontested judgments or that part of a judgment stipulated to by the parties,” a motion to set aside the judgment may be based on “mistake, either mutual or unilateral, whether mistake of law or mistake of fact.” “[T]he failure of a spouse to disclose the existence or the value of a community asset . . . constitutes a basis for setting aside a judgment on the grounds of mistake under section 2122.” (In re Marriage of Varner (1997) 55 Cal.App.4th 128, 144, fn. omitted; accord, In re Marriage of Brewer & Federici (2001) 93 Cal.App.4th 1334, 1345.)

marital settlement induced by undue influence

In re Marriage of Delaney (2003) 111 Cal.App.4th 991, 996, explains that “when any interspousal transaction advantages one spouse to the disadvantage of the other, the presumption arises that such transaction was the result of undue influence.” A mere benefit is not enough;   the advantage must operate “to the disadvantage” of the other spouse.

These are the grounds that are commonly used to set aside a divorce settlement.  Of course, if you are interested in setting aside a settlement agreement, you must take  action in a timely manner. This is a complicated area of law where an experienced Family Law attorney can help you .

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