On private marriage contracts

Warning: First Read Everything Here, only participate or read on if you are sure you understand the risks.

Based on the commentary and excerpt Federico made on studiolo, I've added the book Nudge: Improving Decisions about Health, Wealth, and Happiness by Thaler and Sunstein to my reading list. Since the book seems relevant enough to this site and has been mentioned before, I may eventually write a review. The post by Federico is made up mostly of excerpts from Chapter 15 of the book "Privatizing Marriage".

In addition to this I recommend reading the following excellent essays:

The reason the particular topic he talks about caught my interest is because the proposed solutions by Thaler and Sunstein seem somewhat similar to the one I argued for...

Marriage is a personal or religious arrangement, it is only the states business as far as it is also a legally enforceable contract. It is fundamentally unfair that people agree to a set of legal terms and cultural expectations that ideally are aimed to last a lifetime yet the state messes with the contract beyond recognition in just a few decades without their consent.

Consider a couple marrying in 1930s or 1940s that died or divorced in the 1980s. Did they even end their marriage in the same institution they started in? Consider how divorce laws and practice had changed. Ridiculous. People should have the right to sign an explicit, customisable contract governing their rights and duties as well as terms of dissolution in it. Beyond that the state should have no say, also such contracts should supersede any legislation the state has on child custody, though perhaps some limits on what exactly they can agree on would be in order.

Such a contract has no good reason to be limited to just describing traditional marriage or even having that much to do with sex or even raising children, it can and should be used to help people formalize platonic and non-sexual relationships as well. It should also be used for various kinds of non-traditional (for Western civ) marriage like polygamy or other kinds of polyamours arrangements and naturally homosexual unions.


...and Vladimir_M argued convincingly against. Here...

However, are you sure that you understand just how radical the above statement is? The libertarian theory of contracts -- that you should have full freedom to enter any voluntary contract as far as your own property and rights are concerned -- sounds appealing in the abstract. (Robin Hanson would probably say "in far mode.") Yet on closer consideration, it implies all sorts of possible (and plausible) arrangements that would make most people scream with horror.

In any realistic human society, there are huge limitations on what sorts of contracts you are allowed to enter, much narrower than what any simple quasi-libertarian theory would imply. Except for a handful of real honest libertarians, who are inevitably marginal and without influence, whenever you see someone make a libertarian argument that some arrangement should be permitted, it is nearly always part of an underhanded rhetorical ploy in which the underlying libertarian principle is switched on and off depending on whether its application is some particular case produces a conclusion favorable to the speaker's ideology.

...and here.

I think this would be a genuine cause for concern, not because I don't think that people should be able to enter whatever relationships please them in principle, but because in practice I'm concerned about people being coerced into signing contracts harmful to themselves. Not sure where I'd draw the line exactly; this is probably a Hard Problem.

The speaker has an ideological vision of what the society should look like, and in particular, what the government-dictated universal terms of marriage should be (both with regards to the institution of marriage itself and its tremendous implications on all the other social institutions). He uses the libertarian argument because its implications happen to coincide with his ideological position in this particular situation, but he would never accept a libertarian argument in any other situation in which it would imply something disfavored by his ideology.

Well, there you go. Any restriction on freedom of contract can be rationalized as preventing something "harmful," one way or another.

And it's not a hard problem at all. It is in fact very simple: when people like something for ideological reasons, they will use the libertarian argument to support its legality, and when they dislike something ideologically, they will invent rationalizations for why the libertarian argument doesn't apply in this particular case. The only exceptions are actual libertarians, for whom the libertarian argument itself carries ideological weight, but they are an insignificant fringe minority. For everyone else, the libertarian argument is just a useful rhetorical tool to be employed and recognized only when it produces favorable conclusions.

In particular, when it comes to marriage, outside of the aforementioned libertarian fringe, there is a total and unanimous agreement that marriage is not a contract whose terms can be set freely, but rather an institution that is entered voluntarily, but whose terms are dictated (and can be changed at any subsequent time) by the state. (Even the prenuptial agreements allow only very limited and uncertain flexibility.) Therefore, when I hear a libertarian argument applied to marriage, I conclude that there are only two possibilities:

  1. The speaker is an honest libertarian. However, this means either that he doesn't realize how wildly radical the implications of the libertarian position are, or that he actually supports these wild radical implications. (Suppose for example that a couple voluntarily sign a marriage contract stipulating death penalty, or even just flogging, for adultery. How can one oppose the enforcement of this contract without renouncing the libertarian principle?)

  2. The speaker has an ideological vision of what the society should look like, and in particular, what the government-dictated universal terms of marriage should be (both with regards to the institution of marriage itself and its tremendous implications on all the other social institutions). He uses the libertarian argument because its implications happen to coincide with his ideological position in this particular situation, but he would never accept a libertarian argument in any other situation in which it would imply something disfavored by his ideology.

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Contracts never have merely two parties. They are never "private" in the sense implied above. A contract requires a third party to enforce the contract against either party at the other's appeal. The existence of the enforcing party is a suppressed premise in almost all contracts, and the consent of that third party is rarely explicitly discussed.

Asking for unbounded "freedom of contract" means asking for the existence of a third party who consents to enforce any contract, and has the power to enforce any contract; in other words, a third party that is amoral and omnipotent; one with no objections to any contract terms, and sufficient power to enforce against any party.

The state, in a democratic republic, cannot be such a third party, because it is not amoral — it has moral (or moral-like) objections to some contract terms. For instance, today's republics do not countenance chattel slavery; even if a person signs a contract to be another's slave, the state will not consent to enforce that contract.

I suggest that, given what we know about humans, the creation of an actual amoral and omnipotent third party would constitute UFAI ....

This is a very good point, but while we can't reasonably expect the government to impartially enforce all contracts presented to it, we also can't reasonably tolerate a government that won't recognize or enforce any contracts.

To take an excerpt from one of the linked essays

some couples have specifically contracted for the rights marriage traditionally gave them (but no longer does). In the California case Diosdado v. Diosdado, 97 Cal.App.4th 470, a husband and wife contracted that if the husband had an affair with another woman, he would pay the wife $50,000 on top of the divorce settlement, and vice versa. The husband did in fact have an affair, but the California court refused to honor the couple's agreement. The strong California public policy of no-fault divorce, the court said, prohibited courts from even enforcing the voluntary contracts of a mature adult couple

This is not a contract that goes beyond my intuitions of what it would be reasonable for the state to enforce. It seems we've come to a point where the state (or at least, some states) will refuse to enforce contracts for marriage with terms which it would readily enforce if they were business agreements. Certainly there are stronger economic reasons for making business contracts enforceable than marriage contracts, but I don't think it follows that marriage agreements should be less enforceable, and I have doubts that this is an optimal state of affairs.

I would have framed it as a bet: I bet you $50,000 that you will cheat on me before I ever do. I think the government of my country would refuse to enforce that (gambling is restricted, I can't even access the websites of certain prediction markets as my ISP will block them), but I would've expected the US to have no problem with that.

Gambling is illegal in the US except in specially licensed casinos.

This disregards the common-law policies on contract; namely, that contracts involving illegal activity are unenforceable. I don't believe most people, libertarian or otherwise, who regard government as the arbiter of contracts, would see such contracts as you mention as -being- enforceable.

A second safety feature in contracts is default, again a common-law policy, which states that contracts -can- be ignored, for a monetary penalty equal to the value of the contract, less the value already attained, by the non-defaulting party.

These two common-law concepts act as necessary safety valves on any potential contract. (They can also be the source of some injustices, however.)

This disregards the common-law policies on contract; namely, that contracts involving illegal activity are unenforceable.

People have strong disagreements about what should and should not be illegal. Libertarian arguments can be used to legalize a lot of activity currently considered illegal. Vladimir_M points out that this argument is used almost exclusively to drive ideological agendas.

Standard argument: Wouldn't be enforced. Powers of attorney get ignored all the time - I don't have numbers but anecdotes abound. Even things that are identical to marriage in all but name don't get enforced: in New Jersey in 2007, at least 14% of civil unions aren't recognized by employers. And that's inside the country which recognizes them; how do private marriage contracts work for immigration purposes?

Standard argument: Wouldn't be enforced.

Why not? If you remove say the world marriage as proposed by say the authors, civil contract is all that is left.

Edit: I'm surprised at the down voted, I'm pointing out that societal standards of enforcement do change.

Though on the other hand, most people won't know that. Unenforceable contracts are in fact a totally standard tool to try and get people you have power over to do what you want.

Are you sure you are being consistent here considering what you have noted about gender/sexuality related discussions on this forum? Or do you just think that this is less true of marriage than similar subjects. Perhaps because so few people here are married?

(Suppose for example that a couple voluntarily sign a marriage contract stipulating death penalty, or even just flogging, for adultery. How can one oppose the enforcement of this contract without renouncing the libertarian principle?)

I want to talk about this. I do not feel that the contract described here is unacceptable. I find it strange to come to terms with how it might be the case. Would someone mind enlightening me about why they would feel it unethical to engage in a contract of the sort?

(By the way, I understand the practical objections to such a contract being allowed. People might sign it without fully realizing the implications of it, or they might be coerced by social pressures into signing it. Are reasons like these the only reasons? It seems though that people who argue that contracts like that should be banned are not generally saying so because of reasons like these, but rather they say it from some deeper moral principles, which I would like to know what they are.)

To probe intuitions further. Should it be illegal to sign a contract with someone to assist in your suicide?

Is there no room in this dilemma for locally libertarian opinions?

I don't feel like I have a specific vision of what ideal policies look like, nor do I believe that people should be able to enter into contracts with death penalties, but I do believe that on the margins almost every existing policy would tangibly benefit in its stated purpose from becoming more flexible.

I will acknowledge the possibility that my brain is lying to me about how I actually feel, but almost every policy change I strongly endorse is libertarian in the sense of reducing interventions and full libertarian consequences squick me out.