Harry Husband gives engagement ring to Wendy Wife and tells her its worth more than $20,000 and Wendy signs a premarital agreement that in the event of divorce, the ring would be her asset. Following the divorce, Wendy finds out the ring was cubic zirconium. Is Wendy entitled to any compensation?

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In this case, where a soon to be spouse makes a material misrepresentation regarding the value of an asset, Wendy cannot invalidate the agreement because the asset was under her control. The law assumes that because the asset was under her control, she had the ability to have the asset appraised. In other words, the fact that Wendy failed to have the asset appraised, despite having the opportunity, is the critical point here. Therefore, even though Harry misrepresented the value of the asset, a court in New York would likely uphold the agreement.

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