Scenario Three

Paulin's store is a huge success, and she opens ten more shops across Australia. At the age of 68 years old, she becomes a millionaire with assets worth over $35 million. She meets Kevin, a 24 years old gym instructor living in Melbourne, via an online dating app. Kevin moved to Melbourne recently from Spain on a student visa and did not have any family or close friends in Melbourne. Being a student, he also has very little assets in his name and has limited ability to converse in English. About seven months after meeting each other, Paulin and Kevin set a date for their wedding. Kevin is really excited about starting a family with Paulin and arranges for his family to come to Australia for his wedding. Paulin wants Kevin to sign a pre-nuptial agreement before the wedding so that both parties are clear how her property will be distributed in the event of separation or death. Pauline does an internet search and finds an article that states that a pre-nuptial agreement may not be valid due to lack of consent.

Question is: Paulin is worried that the pre-nuptial agreement may not be valid due to lack of consent and seeks your advice as to how to make a valid agreement with Kevinwithout involving conduct which can be considered as undue influence or unconscionable.

In your answer, please address the following elements:

Explain to Paulin using your own words and relevant case law what undue influence and unconscionable conduct is.

Identify what factors in her relationship to Kevin may result in claims of undue influence and/or unconscionable conduct.

Suggest steps that can be taken by Pauline avoid undue influence and unconscionable conduct involved with the pre-nuptial agreement.