![]() ![]() Section 56 of Ontario’s Family Law Act, outlines the circumstances where a judge can set aside or vary an existing agreement, and includes situations where a party did not provide full disclosure of financial assets and liabilities, did not fully comprehend the agreement, and where the agreement or the way it was negotiated is contrary to law. However, this depends on the integrity of the bargaining process, and separation agreements can be overridden when the circumstances surrounding the negotiations provide reasons to discount it. Carefully negotiated agreements can bring clarity and finality and therefore often carry considerable weight. The general principle outlined by the Supreme Court of Canada is that parties who have separated should be held to their agreements on the grounds that individuals are free to make bargains and decide for themselves what is appropriate. Negotiating a Separation Agreement at a Time of VulnerabilityĪfter parties enter into separation agreements, circumstances may change leading one party to seek to vary the provisions of the agreement. The Mugrabi case, despite being American, serves to illustrate some of the challenges that can emerge in dividing extensive or complex assets and negotiating domestic contracts at a vulnerable time when a party might face mental health issues. She reported feeling bullied and intimidated by the parties’ legal teams and signed at a time when her dosage of Lexapro was reduced which interfered with her ability to fully understand the agreement she signed. Mugrabi alleged that she had felt pressured to sign the agreement and that she signed it under duress while her judgement was clouded from the antidepressant Lexapro that she had been prescribed. In seeking to revisit the terms of the separation agreement, Ms. Mugrabi reportedly alleges that David Mugrabi purposely damaged artworks that were to be provided to her under the settlement, sending a water-damaged Andy Warhol and a damaged Basquiat. The case, filed by Libbie Mugrabi to reopen a reported $100 million divorce that was settled last December, claims that her former spouse had not complied with the terms of the settlement. Despite being from a different jurisdiction, the case highlights some universal issues that may arise in seeking to vary the terms of a signed separation agreement, including mental health considerations and allegations of duress when signing the document. ![]() When parties negotiate a separation agreement it is important to get these decisions right as the ramifications can be long lasting and it can be difficult to vary an existing agreement at a later time.Ī recent case out of New York has received a lot of attention due to some unique factors, including the complexities involved in a very high net worth divorce. When spouses divorce or separate, the division of property and equalization feature prominently as parties plan their financial futures. ![]()
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