Property

Texas Court Reinforces That Post-Marital Agreements Will Be Enforced as Written

Published on: August 14, 2026 | by Francesca Blackard

A recent Texas appellate decision highlights the importance of carefully drafting post-marital agreements and understanding the obligations created by those agreements. In a recent divorce case, the Fourteenth Court of Appeals considered whether a trial court could modify contractual spousal maintenance provisions and how reimbursement claims should be handled when community funds are used to benefit separate property.

The court held that valid marital agreements must be enforced according to their terms, while also recognizing the financial consequences of the parties’ conduct after signing the agreement. Schuller v. Schuller, No. 14-24-00310-CV, 2025 WL ___ (Tex. App.—Houston [14th Dist.] 2025).

Background of the Case

Recent Case Demonstrates Why Precise Premarital Agreement Language Matters for Business Owners in Texas

Published on: August 10, 2026 | by Kelly McClure

Texas law allows prospective spouses to alter many of the default rules governing marital property through a premarital agreement. When a valid agreement clearly defines how property will be characterized, courts generally enforce those terms rather than rewrite the parties’ bargain to achieve what might otherwise be viewed as a “just and right” result. Tex. Fam. Code §§ 4.001-4.010; Tex. Fam. Code § 7.001.

A recent decision from the Third Court of Appeals illustrates why this principle is particularly important for high-net-worth business owners whose wealth is tied to closely held companies, corporate distributions, and evolving business interests. Henry Hutcherson III v. Tina Hutcherson, No. 03-24-00297-CV (Tex. App.—Austin Mar. 19, 2026).

The Content of the Premarital Agreement

Why Financial Tracing Matters More Than Family Testimony in Texas Divorce

Published on: July 27, 2026 | by Kelly McClure

High-net-worth divorces often involve inherited wealth, family gifts, investment accounts, and closely held business interests that one spouse believes should remain separate property. Under Texas law, however, having witnesses assert that an asset is separate property is not enough.

A recent decision from the Texas Third Court of Appeals demonstrates how that burden is applied in practice. In O’Connor v. O’Connor, the court examined whether testimony from multiple family members could establish that mineral interests acquired during the marriage were purchased with the husband’s separate property.

Ultimately, the court concluded that the evidence did not satisfy Texas tracing requirements because the financial documentation left critical gaps. (O’Connor v. O’Connor, No. 03-23-00407-CV, 2025 WL ___ (Tex. App.—Austin July 30, 2025).

Texas Appeals Court Holds Family Vacation Expenses May Support Constructive Fraud Claim in Divorce

Published on: July 2, 2026 | by Francesca Blackard

Texas courts have long recognized that one spouse may commit constructive fraud on the community estate by disposing of community assets without the other spouse’s knowledge or consent. A decision from the Houston Fourteenth Court of Appeals demonstrates how broadly that principle may apply.

In Wadhwa v. Wadhwa, the court concluded that expenditures for family vacations could be considered as part of a constructive fraud analysis when those expenditures depleted community assets and were undertaken unilaterally during the divorce proceedings. Wadhwa v. Wadhwa, No. 14-23-00521-CV (Tex. App.—Houston [14th Dist.] July 22, 2025).

The Facts of the Case

Refinements to the Texas Family Code Regarding “Mixed-Character” Assets in Divorces

Published on: June 28, 2026 | by Kelly McClure

Texas operates under a steadfast community property framework. Under Texas Family Code § 3.003, all property possessed by either spouse during or at the dissolution of a marriage is presumed to be community property. Overcoming this hurdle requires “clear and convincing evidence,” a stringent standard of proof that frequently forces divorcing couples into a financial war, calling in reinforcements from costly forensic accountants.

The complexity intensifies when a single asset holds both separate and community characteristics. With statutory refinements to Chapter 3 of the Texas Family Code, the legislature has delivered guidance to eliminate judicial ambiguity in high-stakes estates. For business owners, corporate executives, and high-net-worth individuals, these updates dramatically change how complex, “mixed-character” assets are divided.

Executive Compensation: From Subjective Formulas to Rigid Fractions

Texas Appeals Court Affirms Award of Entire Marital Residence to One Spouse

Published on: June 20, 2026 | by Francesca Blackard

Texas is a community property state, but community property does not have to be divided equally in a divorce, as highlighted in a recent decision from the Third Court of Appeals. In Paez v. Rodriguez, the appellate court affirmed a divorce decree that awarded the parties’ entire marital residence to the wife, despite the husband’s argument that the property should have been sold and the proceeds divided. See Paez v. Rodriguez, No. 03-24-00731-CV, 2025 WL 2325163 (Tex. App.—Austin Aug. 13, 2025, no pet.).

The case serves as a reminder that Texas courts are not required to divide community property on a strict 50-50 basis. Instead, courts must make a division that is “just and right,” taking into account the circumstances of the parties and any children affected by the divorce. Tex. Fam. Code § 7.001.

The Facts and the Trial Court’s Decision

Financial Independence During Marriage Does Not Eliminate Texas Community Property Rights

Published on: June 3, 2026 | by Kelly McClure

A recent article discussing separate bank accounts in marriage focused heavily on emotional and relational dynamics between spouses. The article referenced a Journal of Consumer Research study suggesting that couples who merged finances often reported higher relationship satisfaction than those who maintained separate accounts (though outcomes varied depending on communication patterns and financial transparency within the marriage).

These findings speak to marital dynamics, but Texas divorce law, however, operates under a separate statutory framework that does not turn on how spouses organize day-to-day finances during marriage. This framework frequently surprises spouses who intentionally maintain independent finances throughout the marriage.

Community Property Presumption Under Texas Law

Interspousal Gifts and Separate Property Under Texas Law

Published on: May 7, 2026 | by Kelly McClure

A fundamental principle of Texas family law is the distinction between community and separate property. While Texas is a community property state, property acquired by a spouse during marriage by gift, devise, or descent is characterized as that spouse’s separate property. Tex. Fam. Code § 3.001(2).

This characterization remains vital even when parties have executed a premarital agreement (PMA) designed to opt out of the community property system entirely. A recent decision from the Dallas Court of Appeals, In the Interest of A.B., illustrates that even a robust “no community property” agreement does not preclude one spouse from transferring their separate property to the other through a valid interspousal gift. No. 05-25-00039-CV, 2026 WL, Tex. App.—Dallas.

Factual Background

Texas Divorce and Business Ownership: When Spouses Are Also Partners

Published on: April 26, 2026 | by Kelly McClure

The dissolution of a marriage involving spouses who serve as co-owners or partners in a closely held business presents unique challenges under Texas law. When marital discord overlaps with corporate governance, the court must navigate the complexities of both the Texas Family Code and the Texas Business Organizations Code. These cases frequently involve high-stakes litigation where the fiduciary duties owed to a business entity intersect with the duties owed to the community estate.

In a recent matter originating in San Antonio, a jury awarded a verdict exceeding $20 million in a dispute involving a prominent automotive dealership partnership. The litigation involved long-term business partners who were also spouses, illustrating the volatility that arises when a professional partnership is entangled with a crumbling marriage.

The dispute centered on allegations of breach of fiduciary duty and the mismanagement of dealership assets during the pendency of the divorce. The divorcing couple has a variety of other lawsuits and countersuits against each other, also awaiting decisions in the Texas court system.

Texas Supreme Court Reaffirms Trial Court’s Characterization of Property Based on Financial Tracing

Published on: April 18, 2026 | by Francesca Blackard

Texas law draws a firm distinction between separate and community property when dividing assets during a divorce. That distinction often plays a significant role in high-net-worth divorce litigation. The dispute in a recent Texas Supreme Court case, Landry v. Landry, centered on the characterization of two investment accounts held during the marriage.

Factual Background and Procedural History

The husband asserted that the accounts were his separate property because they were funded with premarital assets and proceeds that could be traced to separate sources. The wife challenged that characterization, arguing that all property possessed at the end of the marriage is considered community property. Tex. Fam. Code § 3.002. She supported her argument by evidencing that the funds going into the accounts during the marriage had been commingled with the original contributions and should be treated as community property.