A former spouse may want to appeal their Texas divorce decree, but in some cases, actions taken after the divorce decree is entered can preclude a party from appealing. In a recent case, a former wife was barred from challenging certain aspects of the divorce decree by the acceptance of benefits doctrine.
The wife filed for divorce in January 2018. The court rendered judgment in late December 2023 and signed the decree the following January. The wife appealed, arguing the trial court erred in admitting certain evidence, in finding that a condominium was the husband’s separate property, and in awarding the husband an equalization payment.
Acceptance-of-Benefits Doctrine
The husband argued the wife had waived error on appeal pursuant to the acceptance-of-benefits doctrine. This doctrine bars a party from appealing after voluntarily accepting benefits under the judgment that disadvantage the other party. Kramer v. Kastleman. Courts consider a number of factors to determine if the doctrine applies, including whether the party voluntarily accepted the benefits or was subject to financial duress, whether the assets have been dissipated to the extent that recovery would be prevented, whether the issue being appealed is severable from the benefits, whether there is prejudice, and whether the prejudice is curable. Id.
The doctrine may not apply if the party accepted the benefits because of financial duress or if reversal would not affect the party’s right to the benefits. F.M.G.W. v. D.S.W.
In this case, the husband had the burden to show the doctrine applied, and then the wife would have the burden to prove there was an applicable exception.
Equilization Award
The court awarded a $151,808 equilization payment to the husband based on funds received by the wife from a particular account while the divorce was pending. The decree ordered that $265,512.28 from that account was to be retained for taxes, $672,022.22 was to go to the husband as separate property, and the rest was to be equally divided. A check for $160,256.49 was issued to the wife for her half share of the balance. The wife and her attorney endorsed and deposited the check before she filed the notice of appeal.
The appeals court concluded that the wife’s acceptance of this check from the account affirmed the benefits of the decree and were fundamentally inconsistent with her appeal of the decree’s financial accounting. The appeals court determined that the disbursement the wife accepted “stems from the same accounting and distribution mechanism that underlies the equalization payment.” The appeals court concluded the husband would be unfairly prejudiced if the wife were able to appeal the financial distribution while also accepting the disbursement.
The wife did not file a reply brief and there was no evidence of duress of another exception to the doctrine. The appeals court therefore held that she was estopped from appealing the equalization payment.
Property Characterization
The wife also challenged the admission of certain evidence and the sufficiency of evidence supporting the trial court’s characterization of a condominium as the husband’s separate property.
The appeals court noted that mischaracterization of community property as separate property does not necessarily require reversal as long as the property would not affect the just and right property division. The wife had the burden of showing that the mischaracterization led to an abuse of discretion with regard to the property division as a whole. Because the wife failed to show how the alleged mischaracterization constituted an abuse of discretion with regard to the entire estate or affected the property division as a whole, the appeals court concluded she had not presented reversible error.
The appeals court affirmed the judgment.
Contact a Family Law Attorney
Property divisions in high net worth divorces can be complex and require action from one or both parties after the divorce. If you have concerns about any aspect of your divorce decree, you should seek legal advice right away. In this case, the wife’s acceptance of a disbursement check precluded her from challenging certain aspects of the decree. A skilled Texas family law attorney can review your case and advise you on whether an appeal or other action would be appropriate. Call 214.692.8200 to schedule a consultation with McClure Law Group.