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Can you challenge a property settlement agreement in NC?

On Behalf of | Mar 3, 2025 | Property Division

Couples typically draft a Separation and Property Settlement Agreement (SAP) during divorce, but it can also be part of a larger separation agreement. They draft a SAP to avoid disputes and provide a structured plan for both parties.  

Creating a SAP offers several advantages over letting the court decide on property division. It allows couples to negotiate terms that suit their unique circumstances, streamlines the divorce process and provides certainty and stability by clearly outlining the division of assets and responsibilities. 

But what happens if one spouse discovers deception after? Can they challenge the agreement? The answer is yes, under certain conditions.  

Grounds for challenging a property settlement agreement

If you believe your spouse deceived you during the negotiations of your PSA, you can challenge the agreement on several grounds: 

  • Fraud or misrepresentation: If your spouse intentionally hid assets or provided false information, you can challenge the agreement. Full disclosure is mandatory in these agreements. 
  • Duress or coercion: If your spouse forced or pressured you into signing the agreement, you can challenge its validity. 
  • Unconscionability: If the terms of the agreement are highly unfair to one spouse to the point that they shock the conscience, the court may set them aside. 
  • Lack of full disclosure: Both parties must fully disclose their assets and liabilities. If one spouse does not, the other spouse can dispute the agreement. 

Understanding these grounds is essential if you believe your PSA is unfair or your spouse deceived you during the negotiations. 

The legal process for challenging the agreement

To challenge a PSA, you need to follow a legal process: 

  • Filing a motion or complaint: You must file a motion or complaint with the court to set aside the agreement. This motion should outline the reasons why you believe the agreement is invalid. 
  • Court review: The court will review the evidence and determine whether fraud, duress or other invalidating factors influenced the agreement. 
  • Outcome: If the court finds the agreement invalid, it may set it aside and reconsider the property division. 

These steps can help you challenge the PSA effectively and protect your rights. 

Importance of legal guidance

While a SAP is binding, it is not immune to challenges. If you believe your spouse deceived you during the negotiations, you can seek justice and ensure a fair division of assets.

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