Business

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%.

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 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 Wife Awarded Spousal Maintenance After Assisting Husband’s Real Estate Business

Published on: September 9, 2025 | by Francesca Blackard

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.

Court of Appeals Finds Trial Court’s Division of $3 Million in Business Assets Improper

Published on: July 31, 2025 | by Francesca Blackard

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.

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.

Texas Appeals Court Affirms Appointment of Receiver for Collection of Divorce Judgment

Published on: July 8, 2025 | by Francesca Blackard

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.

Texas Appeals Court Reverses Wife’s Intentional Infliction of Emotional Distress Judgment Against Husband

Published on: June 30, 2025 | by Kelly McClure

Sometimes parties to a Texas divorce can get embroiled in litigation beyond standard divorce claims. A spouse may file a tort claim for intentional infliction of emotional distress (“IIED”) in a Texas divorce case. To succeed on an IIED claim in Texas, a plaintiff has to show intentional or reckless conduct that was extreme and outrageous and caused emotional distress that was severe. Hersh v. Tatum. The Supreme Court of Texas has stated that IIED is intended to allow recovery in unusual circumstances where the victim does not have another remedy. Moser v. Roberts. In a recent case, a wife pursued an intentional infliction of emotional distress (“IIED”) claim against the husband, as well as a separate lawsuit against his alleged affair partner, who had been an employee of their business.

The parties owned a plastic recycling company. The wife petitioned for divorce based on adultery in 2019 and made a claim for IIED against the husband.

IIED Claim

The jury awarded the wife $1.5 million for past and future physical pain and mental anguish pursuant to her IIED claim. The husband ultimately appealed.

Texas Appeals Court Affirms Characterization and Property Division in Texas Divorce

Published on: April 20, 2025 | by Francesca Blackard

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.

Texas Appeals Court Finds Insufficient Evidence of Informal Marriage

Published on: March 28, 2025 | by Francesca Blackard

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.