Law for Business 12th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 7

Joe was a 48-year-old wealthy businessman when he began dating Celeste, 22. He asked her to move in with him, but she refused, saying she didn't want to do it unless they were going to have a long-range, permanent husband/wife type of relationship. She later moved in with him, and they reached an agreement wherein she would prepare meals, manage the home, and arrange for remodeling. Joe earned the income and managed the investments. A key part of the agreement was to try to have children together. She alleged that they understood that all property acquired would be treated as joint property. They had a son a couple of years later. The next year they married. Four years later they had twins. Two years later, Celeste filed for divorce and claimed all property should be equitably divided, including Joe's property before they cohabited. Joe argued that he should not have to share any property because a contract between nonmarital partners is invalid if sexual acts form part of the consideration, and the promise to bear children necessarily involved sexual intercourse. Will Joe have to divide his property? Explain.