Specifics of the Case
Types of Marital Contracts
As between themselves, married people can make two distinct types of contracts: (1) separation agreements, and (2) property settlements.
A separation agreement is a contract between spouses providing for marital
support rights and executed while the parties are separated or planning to
separate immediately.
A property settlement provides for the division of property held by the
spouses. Spouses may enter into a property settlement at any time, regardless of
whether they contemplate separation or divorce.
The North Carolina Supreme Court has often noted the differing purposes
underlying the two contracts. The "heart of a separation agreement is the
parties’ intention to live separate and apart forever..." In re Adamee,
291 N.C. 386, 391 (1976). However, a property settlement "contains provisions
... which might with equal propriety have been made had no separation been
contemplated." Jones v. Lewis, 243 N.C. 259, 261 (1955).
N.C. Gen. Stat. § 52-10.1 governs the execution of separation agreements. Pursuant to the statute, to be valid and enforceable a separation agreement must satisfy all of the following requirements:
•The agreement must be in writing
•The terms of the agreement must be consistent with public policy
•The agreement must be acknowledged by both of the spouses in the presence of a certifying officer as defined by N.C. Gen. Stat. § 52-10 (b).
•The certifying officer must not be a party to the contract
A certifying officer is a "... notary public, or a justice, judge, magistrate, clerk, assistant clerk, or deputy clerk of the General Court of Justice, or the equivalent or corresponding officers of the state, territory or foreign country where the acknowledgment is made." N.C. Gen. Stat. § 52-10 (b)
The execution of property settlements is governed by N.C. Gen. Stat. § 52-10 (a).
The Appeal
On appeal, Gary argued that the trail court erred by concluding the January 10, 2005 document was an enforceable agreement governed by N.C. Gen. Stat. § 52-10. Instead, Gary contended that the agreement concerned support rights made during separation and as such that it was governed by N.C. Gen. Stat. § 52-10.1. Further, because the agreement was not acknowledged by both of the parties before a certifying officer as required by N.C. Gen. Stat. § 52-10.1, Gary argued that the agreement was not enforceable. The North Carolina Court of Appeals agreed with Gary and reversed the trial court’s award of recovery to Christina because the agreement was invalid under N.C. Gen. Stat. § 52-10.1.