Maryland Divorce Lawyer Blog
Most of us have seen or heard advertisements or sales pitches imploring audiences to “act now” or that an offer is “for a limited time only.” These approaches are common in motivating prospective buyers of appliances, furniture, or vehicles to act. But what about… a spouse in a divorce settlement negotiation? What should you do if you receive an offer that severely restricts your time to respond? One thing you definitely should do before you sign, whether the agreement you are contemplating has a fast-approaching deadline or no signing deadline at all, is to speak to an experienced Maryland divorce lawyer who can give you the advice you need before you make a decision.
A long-running divorce battle from Anne Arundel County offers insight into these settlement agreements and how the courts treat them.
The spouses, T.P. and D.P., began divorce proceedings in 2019 after three years of marriage. After the spouses “engaged in extensive settlement negotiations,” the wife’s attorney sent the husband’s counsel a finalized marital settlement agreement on Sept. 25, 2020. The correspondence that the wife’s counsel attached to the proposed agreement indicated that the offer was valid only if the husband signed and returned the completed agreement that same day.
The husband did not sign the agreement until the following business day (Sept. 28.) On Sept. 29, the husband filed a motion informing the trial court that the spouses had reached a mutual agreement on their issues. Two weeks later, the wife responded, arguing that no such agreement existed. Her counsel argued that “she made a settlement offer… on September 25, 2020, which was not timely accepted,” making the “signed Marital Settlement Agreement… a nullity.”
Acceptance Deadlines and the Law of ‘Conditions Precedent’
Understanding how the courts resolve disputes like this requires knowing a bit about contract law. Marital settlement agreements in Maryland are analyzed and adjudicated using the tenets of law that apply to all other contracts. At its most basic level, an enforceable contract must have a valid offer and a valid acceptance.
One element that can impact whether or not an acceptance is valid is something called a “condition precedent.” That is an event that must take place before any party has any legal duty to do anything. For example, a vehicle purchase contract might, as a condition precedent, impose on the seller an obligation to produce a valid vehicle title. Another type of condition precedent is a deadline for accepting the offer. One example is an offer of employment that says “This offer is good for five (5) business days only, after which it will expire.”
Maryland law allows spouses to make marital settlement agreement offers conditional on meeting an acceptance deadline. The spouse making the offer only needs to communicate the condition clearly enough that a reasonable person would understand that the offer was conditional on meeting the deadline (or other obligation.)
What Happens If a Spouse Signs Too Late?
When a contract offer contains a condition precedent, the law has a specific protocol for the belated satisfaction of a time-sensitive obligation. Essentially, Maryland law says the passage of an unsatisfied deadline is the equivalent of a revocation of the original offer. Seeking to enforce a contract signed after a signing deadline elapsed is functionally equivalent to seeking to enforce an agreement after the offeror clearly communicated that they revoked the offer. No contract was ever formed and the signed document is unenforceable.
That is what occurred in this Anne Arundel County divorce case, according to the Appellate Court. The wife made her offer conditional on the husband accepting, signing, and returning the agreement by the end of the day on Friday, Sept. 25. The husband signed and returned the document on Monday, Sept. 28. The offer expired at the end of the day on Friday, meaning the parties never formed a valid contract and the husband could not enforce the terms included in the document.
A settlement agreement can be a great way to resolve a divorce without requiring a contested hearing. Settlement agreements can be voluminous and complicated, making it wise to retain legal counsel before you sign anything. Whether you are working to resolve your divorce with a settlement agreement or you are headed to trial, the skilled Maryland family law attorneys at Anthony A. Fatemi, LLC can help. We have extensive experience drafting and reviewing settlement agreements, and we can help you work toward getting a deal that properly meets your needs. Contact us today at 301-519-2801 or via our online form to set up your consultation.