Kelly McClure, Author at Texas Divorce Attorney Blog

Texas Divorce Court Must Compel Arbitration of Dispute Regarding Buyout Provision of Company Agreement

Published on: November 3, 2021 | by Kelly McClure

iStock-1287431987 A family business can complicate the property division in a Texas divorce. A recent case considered whether a husband could compel arbitration to enforce a buyout provision in a company agreement during the divorce proceeding.

The parties formed a limited-liability company together during the marriage, with each owning a 50% membership interest. The husband subsequently petitioned for divorce and the wife filed a counterpetition. Both attached the standing order required by the Travis County District Clerk to protect the parties and preserve their property while the case is pending. The standing order applies to all divorce suits filed in Travis County (and many other counties have similar standing orders, such as Dallas, Collin, Denton, Rockwall, and Tarrant Counties) and prohibits parties from taking certain actions that would harm or reduce the value of the property and from selling or otherwise alienating property belonging to either party.

Wife Seeks to Compel Arbitration on Business Disputes

The husband sought injunctive relief and temporary orders to address disputes relating to operation of the business. The wife asked for those disputes to be resolved according to the company agreement, which required any court proceeding brought by one owner against the other be submitted to mediation first and then to binding arbitration if not resolved. The parties were required to go to mediation and arbitration and the arbitrator entered an award regarding management and control of the business. The wife moved to enforce the arbitration award and the court entered temporary orders in accordance with that award.

Texas Default Divorce Judgment Requires Supporting Evidence

Published on: October 24, 2021 | by Kelly McClure

Rules and regulations books with official instructions and directions of organization or team. 3d illustration

Sometimes, people served with divorce papers do not respond. They may be unsure what to do or they may not want to face the realities of divorce. Failing to respond will not prevent the divorce, however. If a respondent fails to file an answer to a Texas divorce petition, the court may still grant the divorce through a default judgment. Although the petitioner must submit evidence supporting their material allegations and the property division must still be just and right, the divorce may be granted on terms that are unfavorable to the respondent.

A husband recently appealed a default judgment that granted a divorce on the ground of adultery. The parties married in 2008 and had two children together. They entered into a post-marital agreement in 2018. Under that agreement, if the wife filed for divorce because of the husband’s adultery, she would get conservatorship of the children without a geographical restriction, spousal maintenance, and certain property in which the husband held a separate property interest. The wife petitioned for divorce the next year and alleged adultery. The husband did not file an answer.

Default Judgment is Entered

The wife submitted an affidavit to prove up the divorce that incorporated the post-marital agreement by reference. She asked the court to approve the post-marital agreement as the agreement of the parties. The trial court granted the divorce on the ground of adultery. The husband appealed.

Father May Challenge Amount of Arrearages in Decades-Old Texas Child Support Case

Published on: October 17, 2021 | by Kelly McClure

iStock-483611874 Sometimes Texas child-support disputes can continue well past the child’s eighteenth birthday. A Texas appeals court recently decided a case regarding back child support for children who were in their 50s.

This case dealt with a writ of income withholding and child-support liens. Pursuant to Tex. Fam. Code § § 158.301, a parent may file a notice of application of judicial writ of withholding if there is a delinquency in child support that is at least the total due for a month. The notice must include the amount of the arrearages and the amount to be withheld. Tex. Fam. Code § 158.302(1). The obligor may file a motion to stay the writ within 10 days of receiving the notice. Tex. Fam. Code § 158.307(a). The clerk of court may not deliver the judicial writ of withholding until a hearing has occurred. Tex. Fam. Code § 158.308.

According to the appeals court’s opinion, the trial court ordered the father to pay child support when the parents divorced in 1970.

Court Denies Geographic Restriction in Texas Custody Case

Published on: October 4, 2021 | by Kelly McClure

iStock-1175949984 A trial court generally has broad discretion in deciding whether to impose a geographic restriction on the child’s primary residence in a Texas custody case. A geographic restriction limits where the children’s primary residence may be. As with other aspects of a custody case, the primary consideration is whether the restriction is in the best interest of the child. A geographic restriction can help ensure the child maintains relationships with the non-custodial parent, extended family, and the community. In some cases, however, a parent may have good reasons to want to move with the child. The Texas Supreme Court has identified a number of factors in determining whether a move is in a child’s best interest: how it would affect relationships with extended family, how it would affect the non-custodial parent’s visitation and communication with the child, whether a meaningful relationship between the child and non-custodial parent could be maintained with a visitation schedule, the child’s current contact with both parents, the reasons for and against the move, the child’s age, the child’s ties to the community, and the child’s health and educational needs. Lenz v. Lenz.

A father recently appealed an order granting the mother the exclusive right to designate the primary residence without a geographic restriction when the mother intended to move out-of-state with the children.

Mother Offered Opportunity in Arizona

The trial court made several findings of fact. The trial court found the parents moved to Austin so the mother could attend graduate school and intended to stay there until she received her PhD. They had agreed to live there temporarily until the mother got a faculty position at a university. She earned her PhD in 2012. The parties’ twin children were born prematurely in 2013, and the mother took time to care for them instead of advancing her career. During the marriage, she only applied for positions in cities where the father would also have potential job opportunities. They agreed she should apply for a position in Arizona in 2018, but the job was not filled at that time. The parties separated in February 2019 and the mother continued to be primary caregiver.

Texas Grandmother Must Overcome Fit-Parent Presumption to Become Possessory Conservator

Published on: September 22, 2021 | by Kelly McClure

iStock-1147846829 Grandparents sometime take on a parental role in the lives of their grandchildren. In some circumstances, such grandparents may have standing (i.e., the right to sue) for possession and access to the children. Parents have a fundamental right to make decisions regarding their children, however. Generally, a court in a Texas custody case cannot interfere with a fit parent’s right to make decisions for their child by awarding access or possession to a non-parent over the fit parent’s objection, unless the nonparent overcomes the presumption that the fit parent is acting in the child’s best interest. In a recent case, a father challenged a court order naming the grandmother possessory conservator.

Prior Order Provides for Parental Rights and Custody

According to the appeals court’s opinions, the parents were joint managing conservators, with the mother having the exclusive right to determine the primary residence. The mother later became ill and the grandmother, who lived with her, cared for the children. When the mother died in January 2021, the grandmother refused to return the children to the father. He obtained a Writ of Habeas Corpus.

The grandmother intervened and asked to be appointed sole managing conservator with possession or access to the children. The father argued she grandmother did not meet the requirements for grandparent access under Tex. Fam. Code § 153.432 or managing conservatorship pursuant to Tex. Fam. Code § 102.004.

Texas Court Denies Child-Support Modification upon Finding of Underemployment

Published on: September 1, 2021 | by Kelly McClure

iStock-1132277483 In determining the Texas child-support obligation of a parent, the court may consider whether that parent is intentionally unemployed or underemployed. If the court finds the parent is intentionally unemployed or underemployed, it may apply the support guidelines to that parent’s earning potential, rather than to their actual earnings. Tex. Fam. Code Ann. § 154.066. The court does not have to find the parent was attempting to avoid child support to find intentional unemployment or underemployment.

In a recent case, a father challenged the denial of his request for modification of his child-support obligation following a change in jobs that resulted in a significant salary reduction. When the parties divorced in 2015, the trial court appointed the parents joint managing conservators and gave the mother the exclusive right to determine the children’s primary residence. The father was ordered to pay $1,600 in monthly child support and to maintain insurance for the children.

Mother and Father File Competing Modification Suits

The mother petitioned to modify the medical-support provision to give her the obligation to maintain medical insurance in 2019. The father counter-petitioned to reduce his monthly child support based on a change in his salary.

Texas Spousal Maintenance Upheld Without Medical Records or Expert Testimony

Published on: August 8, 2021 | by Kelly McClure

iStock-1183385986-scaled A court may order Texas spousal maintenance if the spouse requesting it is not able to earn enough to provide for their own minimum reasonable needs due to an incapacitating disability. The incapacitating disability may be either physical or mental. Tex. Fam. Code 8.051. A former husband recently challenged a spousal-maintenance award, arguing that the former wife had not shown her disability was “incapacitating.”

Husband Files for Divorce

The couple separated in September 2016 and the husband petitioned for divorce in 2018. At trial, the wife testified she had fallen down the stairs in April 2016.

The wife testified she had lost her vision for several days as a result of the fall. She also experienced seizures. She was in the hospital for several days and was diagnosed with traumatic brain injury with severe memory loss. She said she had difficulty with words and processing things. She testified she recently started regaining her memory and taught herself to read again. She also testified her short-term memory had gotten better than it had been. She admitted that she could currently drive and do math with a calculator.

Wife Waived Right to Tax Reimbursement by Failing to Comply with Texas Divorce

Published on: July 25, 2021 | by Kelly McClure

does-adultery-affect-alimony-in-idaho-1080x600-1 When the parties to a Texas divorce agree on a property division, they may agree that certain obligations or conditions must be met. If a party fails to meet their obligations as agreed to and set forth in the divorce decree, they may not be entitled to the property they were expecting. In a recent case, a husband challenged a court order requiring him to reimburse the wife for certain tax liabilities after she failed to provide him the documentation required to calculate the amount he owed in accordance with the decree.

Wife Fails to Comply with Requirements of Divorce Decree

The parties’ mediated settlement agreement was incorporated into their divorce decree. The decree required the wife to withdraw funds from the husband’s pension plan. After paying certain debts, her attorney was to distribute 30% of the remainder to the wife and 70% to the husband. The decree required the husband to reimburse the wife 70% of her income tax liability for those funds. The decree ordered the wife have two draft income tax returns prepared, one showing the pension plan funds as income and the other not including the funds, to allow the husband to calculate that reimbursement. She was to provide the husband with the draft returns by June 1 of the year after the year the funds were liquidated.

The wife hired a tax preparation company. The first draft return was a joint return with her new husband and included his wages, her wages, her social security disability income, and the liquidated pension plan funds. The second draft return indicated it was a joint return, but only included her wages. She sent the drafts to the husband before the deadline. He informed her he needed a draft return that included only her wages and the liquidated pension plan funds. The wife went back to the tax preparer multiple times, but said they kept getting it wrong.

Texas Child Support Guidelines and Child Support Modification

Published on: July 8, 2021 | by Kelly McClure

iStock-483611874 The trial court has some discretion in determining the modified amount of child support when it has determined that a Texas child support order should be modified. Tex. Fam. Code § 154.125 provides a schedule of percentages that are presumptively applied when the parent’s net monthly resources do not exceed a specified amount. The trial court, however, may consider the listed factors or “any other reason” to determine the application of those amounts is not in the best interest of the child. Tex. Fam. Code § 154.123. There must be evidence of the child’s “proven needs” in the record for the court to deviate upwards from the guidelines. Tex. Fam. Code § 154.126.

A father recently challenged a modification to his child support obligation, arguing the trial court improperly deviated from the presumptive amount. According to the appeals court’s opinion, the parties’ 2017 divorce decree obligated the father to pay $1,710 in child support each month for one child (i.e., max child support at the time). In 2018, he petitioned to modify the amount of child support, claiming his income had decreased.

Father Seeks Reduction in Child Support

The father lived in California and worked as a vice president, selling software testing. His base salary was $80,000, but he also earned commissions and a significant bonus (up to 50% of his base salary). The mother had been a homemaker, but had just begun providing catering services at the time of the hearing. She had earned approximately $1,400 for the one event she had catered at the time of trial.

Texas Appeals Court Finds Wife Did Not Commit Fraud by Nondisclosure

Published on: June 22, 2021 | by Kelly McClure

divorce-property-fraud In some cases, a party to a Texas divorce may agree to a settlement that seemingly has less-than-favorable terms. For example, a party may agree to their spouse receiving property with a higher monetary value to ensure they receive property that has personal value to them. In a recent case, a husband alleged the wife committed “fraud by nondisclosure” by entering into a Mediated Settlement Agreement (“MSA”) without disclosing that the FBI had possession of certain items that were to be awarded to him under that MSA.

Husband is Awarded Certain Items He Believes are in Wife’s Possession

The parties agreed to the MSA, which gave the wife the personal property in her possession with certain exceptions, including a laptop and cell phone. These items were explicitly given to the husband in the MSA. When the husband learned that the wife did not actually have possession of these items, he moved to set aside the MSA. The husband testified that the wife having those items was “a key factor” in his agreement to the MSA and the wife receiving so much joint property and custody of their child. He said the contents on those devices could have a negative effect on his military career. He had initially believed they were in the wife’s possession, because he had left them at the home and she had pictures and videos from the devices. He had previously petitioned for those items to be returned to him, and the wife had subsequently asked to keep all of the possessions in the marital home.

Husband Moves to Set Aside MSA – But is Denied

After he signed the MSA, the husband learned the FBI had both devices. He moved to set aside the MSA in May, arguing the wife committed fraud when she failed to disclose that she did not have the devices. The trial court denied the motion, and the husband appealed.