Estate of Stipo Juric: The Importance of Addressing the Elective Share in Prenuptial and Postnuptial Agreements
The Superior Court of New Jersey Appellate Division’s recent decision In the Matter of the Estate of Stipo Juric, demonstrates that New Jersey maintains a strong policy in favor of a decedent’s surviving spouse’s right to claim one-third of the decedent’s augmented estate, and highlights the importance for a couple to make a clear agreement to waive that claim if they choose to do so.
In the Matter of the Estate of Stipo Juric, decedent became widowed and had two children from the marriage with his deceased spouse. Several years later, decedent remarried late in life to the plaintiff in this matter. At that time, plaintiff was not a United States citizen and remained in the United States on a temporary visa. Following their marriage, decedent created a will leaving all of his assets to the two children of his previous marriage and disinheriting his new spouse from the will.
The marriage was marred with difficulties, as local police were called to the residence on numerous occasions responding to verbal, and on several occasions physical, domestic disturbances. Plaintiff and decedent lived in separate rooms in the home, and decedent filed for divorce on three occasions. In fact, at the time of decedent’s passing, the third divorce action he had filed was still pending. Further, during the course of litigation, a friend of the family provided testimony that decedent characterized his marriage as an arrangement to help plaintiff’s legal immigration status.
Decedent fell ill from terminal cancer and died. Although witness testimony claimed that verbal domestic disputes may have continued to some degree during decedent’s illness, plaintiff acted as the primary caregiver during that time. Likewise, hospice care providers testified that plaintiff remained at the home with decedent on a daily basis during his sickness.
Following his passing, plaintiff filed to enforce her claim to New Jersey’s spousal elective share of the estate. N.J.S.A. 3B:8-1 provides that a surviving spouse or domestic partner may claim, as a right, one-third of the augmented estate of the deceased, unless there was:
- a divorce, or
- evidence that a cause of action for divorce existed at the time of death to disqualify a surviving spouse from elective share rights.
A divorce can be granted based on “irreconcilable differences” where there is a breakdown of the marriage for a period of six months and no reasonable prospect of reconciliation exists.
In the Matter of Stipo Juric, the trial court noted that the evidence demonstrated that after decedent’s terminal diagnosis, plaintiff acted as his primary caregiver and their relationship exhibited the norms of a marriage throughout the last six months of his life. Given those circumstances, the trial court found that plaintiff could enforce her right to the elective share, and the Appellate Division affirmed the trial court’s decision.
The decision demonstrates that domestic disputes, living in separate rooms, a will expressly disinheriting the spouse, and even a pending divorce action may not be enough to prevent a surviving spouse from enforcing the elective share. If the parties’ intent is to waive such a right, it should be stressed that the couple should either enter into a prenuptial agreement or enter into an agreement during the marriage expressly waiving the right. In the Matter of the Estate of Stipo Juric, decedent and plaintiff never completed such an agreement; yet having the agreement in place may ultimately have changed the outcome of the case. If such an agreement is not in place, the court will look at the facts surrounding the nature of the marriage and, in most circumstances, the surviving spouse will maintain their right to an elective share.
Ensuring you have a solid plan for your estate is crucial, especially in the event of unforeseen illness or death. If you have any questions or need help with effective estate planning, please contact me at wjsalvador@norris-law.com.