Spouses sometimes convey property to each other during the marriage for various reasons.  In some cases, those conveyances may become an issue if the couple divorces. In a recent case, a former husband challenged the property division awarding the former wife two pieces of property, even though he had executed deeds conveying those properties to her.

The wife petitioned for divorce in June 2021 after more than 14 years of marriage.  She identified a home and a separate plot of land as her separate property.  She presented copies of a Special Gift Warranty deed by which the husband’s parents gifted the home to him, a later General Warranty deed by which the husband conveyed the home to the wife, a General Warranty Deed conveying the land to the husband, and a subsequent General Warranty deed conveying the land from the husband to the wife.  She identified both properties as her separate property in her Initial Disclosures. The husband did not identify those properties as property he currently owned, separate property, or property against which he had a claim in his discovery responses.

The wife moved for partial summary judgment, asking the court to hold that both properties were her separate properties. She alleged the husband received the home as a gift from his parents, and then conveyed it to her as her separate property. She alleged he bought the land during the marriage and signed a General Warranty Deed conveying it to her in 2020.  She argued he conveyed his undivided one-half community interest in the land to her, raising the gift presumption.

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The division of a business in a Texas divorce can result in ongoing disputes, even after the divorce is finalized. This can be especially true when one party has control of the business while both parties maintain an ownership interest.  A former wife recently appealed a temporary injunction enjoining her from filing lawsuits against the Company and other parties.

The parties divorced in 2019.  They owned a corporation and other related entities together, collectively referred to by the appeals court as the “Company.” The divorce decree ordered the sale of the Company, and appointed a separate entity to do the sale.

The ex-wife appealed the property division in the divorce decree, and the appeals court affirmed. She also appealed a take-nothing judgment against her in a lawsuit in which she alleged the ex-husband had engaged in fraud and breach of fiduciary duty.  That appeal was still pending at the time of the appeals court’s decision in this matter.

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Parties in a Texas high net worth divorce with complex assets may desire to reach an agreement regarding the property division.  While an agreement is often intended to avoid further litigation, in some cases three may be ongoing disputes.  A former wife recently challenged several declarations made by the trial court regarding her former husband’s obligations to pay her amounts received from his business interests.

During the parties’ marriage, the husband acquired significant real estate interests during the marriage, primarily through a group of companies identified by the court as the “KN Companies” and another company.  The parties separated in 2009 and executed an informal settlement agreement in 2012 that stated it was “BINDING AND IRREVOCABLE.”  This Binding Settlement Agreement (“BSA”) stated that the value of the “Total Community Estate” was $12,154,024 and that 55.75% would go to the husband and 44.25% to the wife.

The agreed final divorce decree was signed in December 2016.  The decree stated the parties had separately entered into an Agreement Incident to Divorce (“Agreement”) and incorporated the Agreement into the decree.  The court also found the Agreement and ancillary documents (“Final Settlement Documents”) were stipulated to represent an integrated merger of the BSA and, if there were any conflicts, the Final Settlement Documents would control.

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The court in a Texas divorce case must divide the estate in a “just and right” manner.  Property acquired by either spouse during the marriage, except separate property, is community property.  Tex. Fam. Code § 3.002.  Separate property includes property acquired by a spouse by gift.  Tex. Fam. Code § 3.001.  There is a rebuttable gift presumption for property conveyed by a parent to a child. The presumption can be rebutted by clear and convincing evidence that the parent lacked donative intent. A former husband recently challenged characterization of certain property the wife claimed had been gifted to her, as well as a provision stating the wife was entitled to file taxes as head of household, and a number of other issues.

The wife bought a new home in July 1999. She and her father were listed as the grantees on the deed, but the husband put $25,000 down.  The parties got married that September and lived in the home.  The wife’s father’s interest in the home was transferred to the husband in October 2000.

The husband worked as an engineer when they married but was laid off in 2007.  At the time of the trial, he had not had full-time employment since that lay-off.  He had received a severance and used it for bills and living expenses until it was depleted.  The husband cared for the parties’ young child while the wife worked full time.

While ideally, parties to a Texas divorce can resolve matters amicably, some high net worth divorces can lead to years of ongoing litigation. In a recent case, a former husband appealed an order requiring him to pay the former wife $100,000.  This appeal was the third appeal arising from the parties’ 2019 divorce.

Both parties had challenged the property division in the original divorce decree. In the first appeal, the appeals court concluded the trial court had mischaracterized certain property, with a difference of more than $1 million to the ex-wife.  The appeals court therefore concluded that a mischaracterization of that amount affected the just and right division of the community estate and remanded for a new property division.

The ex-husband appealed the second decree, arguing that there should have been a new trial on remand because several of the properties had changed form since the original decree or no longer existed. He argued the trial court erred when it refused to consider evidence of changes in the property after the divorce.  The appeals court rejected this argument, noting that the community assets are generally valued as of the date of the divorce.  The trial court could have reasonably determined that the changes could later be addressed in an enforcement proceeding. The appeals court affirmed the 2023 decree.

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A court may grant a Texas divorce based on cruel treatment of one spouse toward the other if it “renders further living together insupportable.” “Cruelty” has been defined in Texas case law as an act endangering or threatening “life, limb or health. . .including. . .any infliction of mental pain or anguish.” Daughtry v. Daughtry.  A father recently challenged the decree granting a divorce on the ground of cruelty.

According to the appeals court, the parties married in Cameroon and moved to the U.S. The mother and older child moved to Washington, D.C. while the mother was pregnant with the younger child.

The father petitioned for divorce in December 2022.  The mother argued D.C. should have jurisdiction as the children’s home state. The district court found Texas was the older child’s home state, but left the question of jurisdiction over the younger child to a D.C. court. The D.C. Court determined it had jurisdiction and awarded sole custody of the younger child to the mother.

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Evidence of property values is necessary for a just and right property division in a Texas divorce.  A former husband recently challenged a property division, arguing the court abused its discretion in awarding his former wife a disproportionate share and in denying his motion to reopen the evidence.

The parties got married in 2004 and the wife petitioned for divorce in July 2023.  The husband filed a counterpetition.  The wife filed an inventory and appraisement in April 2024.  The husband, however, failed to make initial disclosures, respond to the wife’s requests for production, or file an inventory and appraisement.

The applicable local rules required parties to file a sworn inventory and appraisement of property, debts, and liabilities at least 30 days before trial. Additionally, the version of Texas Rule of Civil Procedure 194.2 in effect required parties to a divorce to provide certain information in initial disclosures prior to a request for discovery from the other party, but that rule has since been amended.

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A settlement agreement in a Texas divorce can allow the parties an amicable resolution, avoiding lengthy and contentious litigation.  In some cases, however, a party may wish to repudiate the agreement or revoke their consent to the agreement.  A party may revoke consent to an agreement before rendition of the divorce. See Tex. Fam. Code § 7.006(a).  In a recent high net worth divorce case, a former wife challenged the final divorce decree, arguing she had revoked consent to the parties’ settlement agreement.

According to the appeals court, the parties were married for nearly 38 years when they petitioned for divorce. According to the appeals court, the wife’s proposed property division valued the marital estate at more than $5 million. The parties reached an agreement during the trial on April 22, 2024.  The trial court stated it would adopt the agreement. It also stated it “will grant [the] divorce based on insupportability and. . .will accept the agreement. . .”  After being asked by the husband’s attorney, the court stated it “rendered that today. . .”

Both parties and their attorneys signed a copy of the agreement titled “Judge’s Order” and it was signed by the court and file-marked in April.

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A Texas postnuptial agreement is not enforceable if the party proves that it was not signed voluntarily or that it was unconscionable and they were not given a fair and reasonable disclosure of the other party’s property or financial obligations, did not voluntarily and expressly waive disclosure in writing, and did not have or reasonably could not have had adequate knowledge of the other party’s property or obligations. Tex. Fam. Code § 4.105.  A former husband recently challenged a finding the parties’ postnuptial agreement in a high net worth divorce was unenforceable.

The parties married in 1991 and the wife petitioned for divorce in 2019.  She voluntarily non-suited that case and the parties signed a postnuptial agreement.  The wife filed for divorce again in 2022.  She argued the agreement was unconscionable and she had entered into it involuntarily.

According to the appeals court, the evidence showed the husband was not represented by an attorney at the time. The wife emailed him links to websites about postnuptial agreements. The husband testified they drafted an agreement that day. The wife denied being involved with drafting the agreement.  The husband testified she told him her attorney would review it and he agreed to reimburse her for the fees. She contacted her attorney at some point and signed the non-suit order. The court granted the non-suit the same day the wife’s attorney filed it. The following day, the parties signed the agreement in front of a notary, but the wife’s attorney was not present.

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The purpose of Texas spousal maintenance is to give temporary support to a spouse whose ability to provide for their own needs has been diminished and who does not have sufficient assets to support themselves.  Spousal maintenance may be ordered if the spouse meets certain statutory criteria.  For a marriage that has lasted at least 10 years, the court may award maintenance if the spouse has insufficient property and lacks the ability to earn sufficient income to provide for their minimum reasonable needs.  Tex. Fam. Code § 8.051(2)(B).  Texas has a rebuttable presumption against maintenance unless the spouse has been diligent in earning sufficient income or developing skills to do so while separated and while the divorce is pending.  Tex. Fam. Code . § 8.053(a). If the spouse rebuts the presumption, the trial court considers certain statutory factors in determining any maintenance award.  Tex. Fam. Code § 8.052.  A spousal maintenance award generally cannot exceed the lesser of $5,000 or 20% of the spouse’s average gross monthly income. Tex. Fam. Code § 8.055.  A former husband recently challenged a spousal maintenance award to his former wife of over 30 years.

The parties married in 1988.  The husband was a real-estate broker and ordained minister.  He admitted his pornography addiction and past adultery to the wife in February 2023.  The wife subsequently moved in with their daughter.

The wife petitioned for divorce in September 2023 on the grounds of cruelty and adultery.  She requested a disproportionate share of the marital estate and spousal maintenance.

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