In a Texas divorce, “special community property” is community property that is under the sole management, control, and disposition of one spouse. Tex. Fam. Code § 3.102(a).  Although special community property is under the sole management, control, and disposition of one spouse, disposition of that property must be fair to the other spouse.

When a spouse shows the other spouse disposed of community property without their consent or knowledge, there is a presumption of constructive fraud. The other spouse then has the burden of showing the disposition was fair.  The court considers the relative size of the property to the total community estate, the adequacy of the rest of the estate, and the relationship of the parties involved in the disposition.  In a recent case, a husband challenged the divorce decree that stated he had committed fraud on the community estate.

The parties had two children together.  The husband’s two children from a previous relationship were adults by the time of the divorce. Each party alleged constructive and actual fraud on the community estate by the other.

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Sometimes a party to a Texas divorce may have difficulty collecting what has been awarded to them. Pursuant to the Texas turnover statute, a judgment creditor may ask the court to assist them in reaching the judgment debtor’s non-exempt property.  The court is authorized to take a number of actions, including appointing a receiver. Tex. Civ. Prac. & Rem. Code § 31.002.  Appointment of a receiver is considered an “extraordinary remedy” and should not occur if there is a lesser remedy available. Gilbreath v. Horan.  Although a receiver may be appointed in a divorce case, the turnover statute is not limited to divorce cases.  In a recent case, a former wife requested a receiver to satisfy a judgment against her former husband following his divorce from his second wife.

According to the appeals court’s opinion, the former husband remarried after the parties’ divorce in 2011.  He and his second wife divorced in 2018.  The first wife argued the property division in the husband’s second divorce constituted a fraudulent transfer to the second wife to avoid debts he owed the first wife.

The parties divorced in Arkansas in 2011.  The husband was ordered to pay $250,223 to a business and $8,000 to the first wife for attorney’s fees.  According to the first wife, she sought garnishment against multiple banks in February 2018 and was awarded $70,000 in one of those actions, partly based on her sole ownership of the business.

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The Texas Family Code sets out the circumstances under which Texas spousal maintenance may be ordered. The court may order maintenance to a spouse only if they will lack sufficient property after the divorce to provide for their minimum reasonable needs.  The spouse must also meet one of three conditions, either: (A) being unable to earn sufficient income to meet their minimum reasonable needs because of an incapacitating disability; (B) having been married for at least 10 years and lacking the ability to earn sufficient income; or (C) being the custodian of a child of the marriage who has a disability and requires substantial care and supervision that prevents the spouse from earning sufficient income. Tex. Fam. Code § 8.051. It is generally within the court’s discretion to determine a spouse’s “minimum reasonable needs.”

The Texas Supreme Court recently considered the nature of evidence required to support a spousal maintenance award.

The wife stopped working outside the home to become their primary caregiver to the parties’ triplets.  One of them was a “medically fragile child” who needed extensive medical treatment.

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Property characterization can be a significant area of contention in Texas divorces, particularly in high net worth divorces or those in which one party entered the marriage with significantly more assets.  Texas law presumes that property possessed by either spouse during or on dissolution is community property.  That presumption may be rebutted by clear and convincing evidence the property is separate. Tex. Fam. Code § 3.003. Property conveyed by one spouse to the other is generally presumed to be a gift.  Clear and convincing evidence the conveying spouse did not intend to gift the property is needed to rebut the gift presumption.  A former husband recently challenged characterization of the marital residence as the wife’s separate property despite execution of a general warranty deed granting him an undivided one-half interest.

The parties got married in 2001 and the wife petitioned for divorce in 2021. The trial court found the marital home was the wife’s separate property.  According to the appeals court’s opinion, she bought it two years before the marriage and refinanced it in 2003.  She also signed a general warranty deed that granted the husband an undivided half interest. The court found the wife did not intend to gift the property to the husband and provided an alternate reason for executing the warranty deed.  The court also found refinancing had not changed the property’s character.  The trial court awarded the wife conditional appellate attorney’s fees if the husband appealed to the Court of Appeals or the Supreme Court of Texas and the wife “substantially prevail[ed].]”

The husband appealed the home’s characterization and the conditional appellate attorney’s fees award.

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A Texas property division must be “just and right,” but that does not necessarily mean equal. A court may consider a party’s fault in the division when determining how to divide the property, but it may not use the property division to punish the at-fault spouse.  A former husband recently challenged his divorce decree, arguing in part that the court abused its discretion by not considering the wife’s adultery in its property division.

According to the appeals court, both parties were from India, but the husband was working in Texas prior to the marriage.  The parties got married in India in 2004 and wife moved to Texas with the husband.  They had two children together.

The husband petitioned for divorce on the grounds of adultery in October 2018. He asked the court to award him the marital residence.  In her counterpetition, the wife alleged the husband had committed acts of cruelty. Both parties alleged fraud on the community by the other spouse.

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Reimbursement is an equitable right arises in a Texas divorce when the property of one marital estate is used to the benefit of another marital estate, resulting in unjust enrichment to the benefited estate if not repaid.  Tex. Fam. Code § 3.402.  A spouse may pursue a reimbursement claim, for example, if community property funds are used to pay the debt for or make improvements to the other spouse’s separate property.  The court must apply equitable principles to determine if it will recognize a claim for reimbursement, considering the relative circumstances of both parties and, if the court determines the reimbursement claim is appropriate, it must order a just and right division of the claim for reimbursement, with regard for the rights of the parties and children.  Tex. Fam. Code § 7.007.  The spouse seeking reimbursement has the burden of proving that the property of one marital estate was used by one or both spouses to benefit another marital estate, the value of that benefit, and that the benefited estate will be unjustly enriched if reimbursement is not required. Tex. Fam. Code § 3.402(b).  The trial court has broad discretion in determining reimbursement claims.

In a recent case, a former husband appealed the divorce decree that did not award him reimbursement.  The wife petitioned for divorce in 2022, after nearly 50 years of marriage.  In his counterpetition, the husband made a claim for reimbursement, but the court did not award him reimbursement in the final divorce decree.

The Husband’s Appeal

The husband appealed, arguing the trial court did not properly apply the law regarding reimbursement of the community estate.  The judge stated, “whatever she took with her [in 2016] the marriage was still ongoing . . . . I cannot go back in time and fix that.” The husband argued the court misstated the law.

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Texas has adopted the Uniform Child Custody Jurisdiction and Enforcement Act (“UCCJEA”), which identifies what state has jurisdiction over custody matters. The UCCJEA generally prioritizes the child’s home state for jurisdiction.   The child’s home state is where they have lived with a parent for the six months before the custody proceeding commenced, or if they are less than six months old, where they have lived with a parent since birth.

For a Texas court to have jurisdiction to make an initial child custody determination, Texas must be the child’s home state on the date the proceeding commenced or must have been the child’s home state within six months before the proceeding commenced if the child is absent from Texas but a parent or person acting as a parent still lives in Texas.  Tex. Fam. Code § 152.201(a)(1). Texas may also have jurisdiction if another state court does not have jurisdiction or if child’s home state court declined jurisdiction because Texas was a more appropriate forum and the child and the parents, or the child and at least one parent or on person acting as a parent, have a significant connection with Texas and there is substantial evidence in Texas regarding the child. Tex. Fam. Code § 152.201(a)(2). A Texas court may also have jurisdiction if all courts having jurisdiction on the grounds above have declined to exercise it because a Texas court is a more appropriate forum. Tex. Fam. Code § 152.201(a)(3). Furthermore, Texas may have jurisdiction when no other court or any state would have jurisdiction based on the above criteria.  Tex. Fam. Code § 152.201(a)(4).

A mother recently challenged a Texas court’s jurisdiction over her child’s custody.  According to the appeals court’s opinion, the parties separated while the mother was pregnant and she moved to Chicago before the child was born.   The mother filed for divorce in Illinois and the father filed for divorce in Texas.  The mother’s petition did not include an issue related to the custody of the unborn child, but the father’s petition did.  The child was born in in Illinois after both petitions had been filed.

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Characterization and valuation of property can be heavily contested issues in Texas divorces, especially in cases involving a high net worth or businesses.  A wife recently challenged the court’s characterization of certain property and property division.

The husband petitioned for divorce just a year and eight months after the marriage.  The court’s judgment confirmed certain property as his separate property and divided the community property. The court awarded specific items to each party, and granted a judgment for half the value to the other party, resulting in a generally equal division of the community property. The court also divided cash and bank accounts equally.

The court awarded the wife an equalization judgment of $232,878.85 and the husband an equalization judgment of $56,300. The court also awarded the husband a judgment of $80,000 for his separate property that the court found the wife had converted.

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Courts may modify a Texas custody order if doing so is in the best interest of the children and there has been a material and substantial change in circumstances of the child or a conservator since the order was rendered.  Tex. Fam. Code § 156.101. In determining the children’s best interest, courts consider the factors set forth in Holley v. Adams, but the court is not limited to those factors and all of the Holley factors may not apply in each case.

Courts may also place geographic restrictions on the child’s primary residence to ensure children are able to have frequent and continuing contact with their parents. To determine the children’s best interest when one parent wants to relocate, court consider a number of factors set forth in Lenz v. Lenz.  A father recently appealed the denial of his modification petition seeking a more limited geographic restriction.

Modification Proceeding

The father petitioned for modification of the parent-child relationship to reduce the statewide geographic restriction to Midland County.  Alternatively, he asked the court to modify the relationship as it deemed in the children’s best interest.  He also asked for increased travel expenses because the mother had relocated.  In her counterpetition, the mother sought to be named the sole managing conservator with the father being named possessory conservator with supervised visitation.  They both alleged a material and substantial change in circumstances since the divorce decree was signed and entered.

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Generally, the date of a marriage is certain, but that is often not the case with an informal marriage. The date of marriage affects the characterization of property and therefore a dispute over the date of marriage can significantly impact the property division. A former husband recently appealed a divorce decree, arguing in part that the trial court erred in finding the parties were married on or about January 1, 2012, which was before their ceremonial wedding.

According to the appeals court, the parties had a ceremonial wedding in January 2013.  The husband petitioned for divorce in late 2020, alleging they had “married on or about January 31, 2013.” In the wife’s counterpetition, she alleged they “married on or about January 1, 2012.”

The trial focused on the marital residence, some property in Mexico, and the husband’s trucking company.

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