Spouses sometimes convey property to each other during the marriage for various reasons.  In some cases, those conveyances may become an issue if the couple divorces. In a recent case, a former husband challenged the property division awarding the former wife two pieces of property, even though he had executed deeds conveying those properties to her.

The wife petitioned for divorce in June 2021 after more than 14 years of marriage.  She identified a home and a separate plot of land as her separate property.  She presented copies of a Special Gift Warranty deed by which the husband’s parents gifted the home to him, a later General Warranty deed by which the husband conveyed the home to the wife, a General Warranty Deed conveying the land to the husband, and a subsequent General Warranty deed conveying the land from the husband to the wife.  She identified both properties as her separate property in her Initial Disclosures. The husband did not identify those properties as property he currently owned, separate property, or property against which he had a claim in his discovery responses.

The wife moved for partial summary judgment, asking the court to hold that both properties were her separate properties. She alleged the husband received the home as a gift from his parents, and then conveyed it to her as her separate property. She alleged he bought the land during the marriage and signed a General Warranty Deed conveying it to her in 2020.  She argued he conveyed his undivided one-half community interest in the land to her, raising the gift presumption.

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Parties in a Texas high net worth divorce with complex assets may desire to reach an agreement regarding the property division.  While an agreement is often intended to avoid further litigation, in some cases three may be ongoing disputes.  A former wife recently challenged several declarations made by the trial court regarding her former husband’s obligations to pay her amounts received from his business interests.

During the parties’ marriage, the husband acquired significant real estate interests during the marriage, primarily through a group of companies identified by the court as the “KN Companies” and another company.  The parties separated in 2009 and executed an informal settlement agreement in 2012 that stated it was “BINDING AND IRREVOCABLE.”  This Binding Settlement Agreement (“BSA”) stated that the value of the “Total Community Estate” was $12,154,024 and that 55.75% would go to the husband and 44.25% to the wife.

The agreed final divorce decree was signed in December 2016.  The decree stated the parties had separately entered into an Agreement Incident to Divorce (“Agreement”) and incorporated the Agreement into the decree.  The court also found the Agreement and ancillary documents (“Final Settlement Documents”) were stipulated to represent an integrated merger of the BSA and, if there were any conflicts, the Final Settlement Documents would control.

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While ideally, parties to a Texas divorce can resolve matters amicably, some high net worth divorces can lead to years of ongoing litigation. In a recent case, a former husband appealed an order requiring him to pay the former wife $100,000.  This appeal was the third appeal arising from the parties’ 2019 divorce.

Both parties had challenged the property division in the original divorce decree. In the first appeal, the appeals court concluded the trial court had mischaracterized certain property, with a difference of more than $1 million to the ex-wife.  The appeals court therefore concluded that a mischaracterization of that amount affected the just and right division of the community estate and remanded for a new property division.

The ex-husband appealed the second decree, arguing that there should have been a new trial on remand because several of the properties had changed form since the original decree or no longer existed. He argued the trial court erred when it refused to consider evidence of changes in the property after the divorce.  The appeals court rejected this argument, noting that the community assets are generally valued as of the date of the divorce.  The trial court could have reasonably determined that the changes could later be addressed in an enforcement proceeding. The appeals court affirmed the 2023 decree.

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A court may grant a Texas divorce based on cruel treatment of one spouse toward the other if it “renders further living together insupportable.” “Cruelty” has been defined in Texas case law as an act endangering or threatening “life, limb or health. . .including. . .any infliction of mental pain or anguish.” Daughtry v. Daughtry.  A father recently challenged the decree granting a divorce on the ground of cruelty.

According to the appeals court, the parties married in Cameroon and moved to the U.S. The mother and older child moved to Washington, D.C. while the mother was pregnant with the younger child.

The father petitioned for divorce in December 2022.  The mother argued D.C. should have jurisdiction as the children’s home state. The district court found Texas was the older child’s home state, but left the question of jurisdiction over the younger child to a D.C. court. The D.C. Court determined it had jurisdiction and awarded sole custody of the younger child to the mother.

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A settlement agreement in a Texas divorce can allow the parties an amicable resolution, avoiding lengthy and contentious litigation.  In some cases, however, a party may wish to repudiate the agreement or revoke their consent to the agreement.  A party may revoke consent to an agreement before rendition of the divorce. See Tex. Fam. Code § 7.006(a).  In a recent high net worth divorce case, a former wife challenged the final divorce decree, arguing she had revoked consent to the parties’ settlement agreement.

According to the appeals court, the parties were married for nearly 38 years when they petitioned for divorce. According to the appeals court, the wife’s proposed property division valued the marital estate at more than $5 million. The parties reached an agreement during the trial on April 22, 2024.  The trial court stated it would adopt the agreement. It also stated it “will grant [the] divorce based on insupportability and. . .will accept the agreement. . .”  After being asked by the husband’s attorney, the court stated it “rendered that today. . .”

Both parties and their attorneys signed a copy of the agreement titled “Judge’s Order” and it was signed by the court and file-marked in April.

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The purpose of Texas spousal maintenance is to give temporary support to a spouse whose ability to provide for their own needs has been diminished and who does not have sufficient assets to support themselves.  Spousal maintenance may be ordered if the spouse meets certain statutory criteria.  For a marriage that has lasted at least 10 years, the court may award maintenance if the spouse has insufficient property and lacks the ability to earn sufficient income to provide for their minimum reasonable needs.  Tex. Fam. Code § 8.051(2)(B).  Texas has a rebuttable presumption against maintenance unless the spouse has been diligent in earning sufficient income or developing skills to do so while separated and while the divorce is pending.  Tex. Fam. Code . § 8.053(a). If the spouse rebuts the presumption, the trial court considers certain statutory factors in determining any maintenance award.  Tex. Fam. Code § 8.052.  A spousal maintenance award generally cannot exceed the lesser of $5,000 or 20% of the spouse’s average gross monthly income. Tex. Fam. Code § 8.055.  A former husband recently challenged a spousal maintenance award to his former wife of over 30 years.

The parties married in 1988.  The husband was a real-estate broker and ordained minister.  He admitted his pornography addiction and past adultery to the wife in February 2023.  The wife subsequently moved in with their daughter.

The wife petitioned for divorce in September 2023 on the grounds of cruelty and adultery.  She requested a disproportionate share of the marital estate and spousal maintenance.

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Property divisions in Texas divorces are intended to be final.  Although a party may appeal or seek to enforce a property division, they generally cannot relitigate it in a separate lawsuit.  Sometimes, however, the divorce decree does not adjudicate all of the parties’ property.  A former spouse may file suit to divide property that was not divided in the decree. Tex. Fam. Code § 9.201.

In a recent case, a former husband filed suit to divide property that he alleged had not been divided in the parties’ 2009 divorce.

According to the ex-husband’s pleading, the parties got married in 1981.  He alleged the ex-wife bought property in Colorado while they were married, but that property was not addressed in the 2009 decree because they “agreed to divide the property among themselves later.” He also alleged the ex-wife notified him she would not comply with the agreement in 2023 and transferred the property to someone else.  The ex-husband requested clarification that the property in Colorado was community property and asked for a one-half interest in it, along with fees and costs.

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Texas spouses may agree in writing to partition or exchange some or all of their community property between themselves such that the property becomes the separate property of one spouse.  A former wife recently challenged her divorce decree, arguing the trial court erred in awarding a reimbursement claim against her, reducing the spousal maintenance below the amount stated in the parties’ agreement, and including contingencies on the spousal maintenance that were not in the agreement.

According to the appeals court’s opinion, the parties married in 2006. They signed a Marital Property Partition and Exchange Agreement in 2020 that made two pieces of property the wife’s sole and separate property.  She agreed to be responsible for the debt associated with them.  The husband, however, made some of those payments from his community property income until the date of divorce.

The couple stopped living together in 2022 and the husband petitioned for divorce. The court enforced the agreement, but divided the other property according to the husband’s proposed division.

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Property division in a Texas divorce can be complicated when there is a business involved.  In a recent case, a former husband challenged a property division that divided assets belonging to his business entities.

According to the appeals court, the husband formed two businesses before the marriage.  He said he purchased property, including rental houses in Florida and vacant lots in Texas, to be used by the businesses with money he brought when he moved from Puerto Rico. The wife worked at one or more of the husband’s businesses during the marriage.

The husband and both businesses bought and sold multiple commercial vehicles and trailers while the parties were married.

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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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