Kelly McClure, Author at Texas Divorce Attorney Blog

Texas Appeals Court Reverses Property Division in High Net Worth Divorce Involving Allegations of Fraud

Published on: November 22, 2025 | by Kelly McClure

High net worth divorces and business divorces can often be contentious. In some cases, spouses may allege fraud or other improper actions by the other spouse. There is a presumption of fraud when a spouse disposes of the other’s one-half interest in a community asset without their consent or knowledge. Cantu v. Cantu. The presumption shifts the burden to the spouse who disposed of the property to show that the transaction was fair. Key v. Key. In a recent case, a former wife appealed issues related to alleged fraud and the property division.

The parties operated a jewelry business during their marriage. The wife petitioned for divorce in January 2019. The parties agreed that the fraud and reconstitution of the community estate issues would go the jury and the property division would be tried by the bench. The jury found that both parties committed fraud on the community. The jury was asked to evaluate the fairness of certain transactions from the wife to her mother and found that the wife unfairly depleted the community estate by $1,269,720.35.

The court determined the reconstituted estate had over $4.5 million in assets and over $470,000 in debts. The court allocated 50.51% of the assets to the wife and 49.49% to the husband. More than half of the assets allocated to the wife was the value of her unfair transactions as determined by the jury. The assets allocated to the husband included properties valued at about $1.9 million and the jewelry business. The court also allocated 70.36% of the debts to the wife. The court also ordered the wife to pay the husband a $131,710 equalization payment. Ultimately, the husband received 55% of the reconstituted estate and the wife 45%.

Wife Granted Portion of Proceeds of Husband’s Separate Property House Purchased Prior to Marriage

Published on: November 9, 2025 | by Kelly McClure

In Texas, property acquired by either spouse during the marriage is presumed to be community property. However, property acquired prior to marriage is not community property. In a recent case, the parties disputed the ownership of a piece of property they bought before marriage.

Before the parties married, they bought a property in Floresville with both names listed as “Grantee” on the warranty deed.

The wife petitioned for divorce in August 2023. She testified that the property was purchased with money from their joint account. She said that proceeds from the sale of a property owned by the husband were in the joint account but said they had both contributed funds to the joint account.

Texas Reversal of Temporary Injunction Enjoining Ex-Wife From Filing Lawsuits Related to the Parties’ Company

Published on: October 29, 2025 | by Kelly McClure

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.

Texas Appeals Court Affirms Characterization of Parental Gift as Separate Property

Published on: October 15, 2025 | by Kelly McClure

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.

Texas Appeals Court Affirms Divorce Decree Awarding Wife Interests in Oil and Gas Wells

Published on: September 28, 2025 | by Kelly McClure

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.

Texas Appeals Court Upholds Post-Marital Agreement Giving Ex-Husband Millions More than Ex-Wife

Published on: September 15, 2025 | by Kelly McClure

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.

Ex-Wife Required to Pay Ex-Husband Proceeds from Sale of His Business Interest

Published on: September 9, 2025 | by Kelly McClure

Mediated settlement agreements and Texas agreed divorce decrees are construed according to standard contract interpretation principals. A former wife recently challenged an enforcement order based on her interpretation of the agreed divorce decree.

The parties got married in 2002. The husband had acquired a business interest in the company for which he worked before the marriage. He sold that business interest in 2020, receiving one payment of a million dollars and four additional deposits totaling more than $1.8 million. Those funds were deposited into multiple accounts. Some of the funds had been spent.

The wife petitioned for divorce in May 2021. She withdrew funds from the parties’ accounts to support her children. Although she repaid some of the withdrawn funds, she did not repay all of it.

Real Estate Lost Separate Property Character When Transferred to LLC

Published on: August 22, 2025 | by Kelly McClure

Real estate investments can lead to complex issues for property division in a Texas divorce, especially if there are co-owners or business entities involved. A former husband recently challenged the property division in his divorce, which characterized certain property as his wife’s separate property and awarded his father-in-law a 50% interest in a piece of real estate.

The parties moved to Texas from the U.K., intending to purchase real estate in Austin. In 2018, the wife’s parents gave her about £250,000, documented as a gift in a letter. The wife put £214,000, which totaled a little over $248,000, into a joint account. The funds were used for 97.19% of the purchase price of a property identified by the court as “the Webberville property.” The purchase and deed were in only the husband’s name based on advice from an immigration attorney.

The parties purchased “the Gunter property” with the wife’s father in late 2019. They did not have a written contract regarding the co-ownership, but the wife’s father testified they agreed he would put 50% down and own 50% of the property. He had signed a letter in November of that year, however, stating the funds he put toward the purchase were a gift with no expectation of repayment. The husband told him having only the couple on the title would facilitate the purchase, but he would amend it to add the wife’s father. The father was not added, but the husband did give him property and loss statements for the property and pay him $14,000 as his share of the rental income.

Former Husband Failed to Trace Separate Property from Alleged Gift in High Asset Texas Divorce

Published on: August 13, 2025 | by Kelly McClure

Large inheritances, trusts, and gifts can complicate the property division in a Texas divorce. A spouse’s separate property includes the property they received during the marriage through gift, descent, or devise. Tex. Fam. Code § 3.001. In a recent case, a former husband challenged his divorce decree that characterized mineral rights he obtained from his mother’s trust as community property.

According to the opinion, when the husband’s mother died, she left a trust for the benefit of the husband’s father during his lifetime. The trust included mineral rights to certain property, which the husband’s father transferred to the husband and his siblings on November 1, 2009. The deed stated the grantor transferred the mineral rights to the husband and his five siblings “[f]or an adequate consideration paid and received.”

The husband testified his father gifted each sibling $12,000 from their mother’s estate to purchase the mineral rights. He presented a carbon copy check for $12,000 dated November 19, 2009, but it did not have an account number, payor name, or signature. A bank statement for the parties’ joint account reflected a $12,171 deposit on November 23 and a check for $11,130.50 on December 3. Those records did not indicate the source of the funds or who deposited them. They also did not show who wrote the check or who received it.

Wife Awarded Oncologist Husband’s Patent Rights and Stock Distributions Post-Divorce

Published on: July 29, 2025 | by Kelly McClure

Certain assets, especially stocks or assets related to a business, may be held in the name of just one spouse, even if they are community property. In a Texas divorce, a court may impose a constructive trust requiring the spouse to transfer property to the other spouse. Tex. Fam Code 9.011 provides that receipt by one spouse of certain installment or lump-sum payments that were awarded to the other spouse in a divorce decree gives rise to a fiduciary obligation and imposes a constructive trust on the property.

In a recent case, a former husband challenged the divorce decree that imposed a constructive trust on future payments to him as stockholder in a corporation, arguing that part of the payments should be considered his separate property.

The husband was an oncologist who was involved in the development of a drug to treat breast cancer. A corporation owned the patent rights for the drug and the husband acquired stocks equaling 30.33% ownership of the corporation with community funds.