Articles Posted in Divorce

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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A Texas marriage may end by either death of a spouse or a court order. Generally, it is clear how a marriage ended, but in some cases, there can be a dispute.  In a recent case, the Texas Supreme Court considered whether a divorce filed by the husband’s guardian resulted in a valid divorce decree before the husband’s death.

The husband had significant assets. He and his fourth wife signed a pre-marital agreement before the marriage in September 2011 and a post-marital agreement, agreeing no community property would be created and each spouse would keep their separate property unless they transferred it to the other in writing or by a will.

The husband petitioned for divorce after about seven months, but was diagnosed with dementia.  He failed to prosecute the case and it was dismissed. His daughter claimed he still wanted the divorce, while the wife alleged he changed his mind.

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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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In Texas, a court may grant a “no-fault” divorce if the marriage has become insupportable due to “discord or conflict of personalities. . .” Tex. Fam. Code  § 6.001. The court may also grant divorce in favor of a spouse, if the other spouse committed adultery. Tex. Fam. Code § 6.003.  In a recent case, a former wife appealed her Texas divorce decree, which was granted on the ground of insupportability instead of adultery.

According to the appeals court, the parties got married in 2014 and the wife petitioned for divorce in 2022.  She alleged insupportability and adultery by the husband as grounds for the divorce and sought a disproportionate share of the community estate.  In his counterpetition, the husband alleged insupportability and sought an equal division of the community estate.

Trial

At trial, the wife testified she made more than $100,000 per year in the military but was now receiving about $88,000 from retirement and disability benefits.  She said that the parties generally maintained separate finances and separate bank accounts during the marriage, but she primarily paid the bills out of her own account and was reimbursed by the husband for his share. They also had a joint account for bills.

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All property possessed by either spouse at the time of a Texas divorce is presumed to be community property, but this presumption can be rebutted with clear and convincing evidence. Property’s characterization is determined by the inception of title. Separate property retains its separate character if the spouse can rebut the community presumption by tracing the assets back to separate property. If separate and community property are commingled to an extent that would defy resegregation and identification, it will be presumed to be community property.

A former wife recently appealed the award of funds from a particular account in the divorce decree.

According to the appeals court, the trial court had awarded 60% of the funds in the account to the husband as his separate property.  The court found the remainder of the funds were community property and awarded each party half of that amount as their separate property.

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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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A court may grant a Texas annulment if the other party induced the petitioner into the marriage by fraud, duress or force and the petitioner did not voluntarily cohabit with the other party after learning about the fraud or being released from the force or duress.  Tex. Fam. Code § 6.107.  A former husband recently challenged an annulment, arguing there was insufficient evidence to support a finding of fraudulent inducement.

According to the appeals court, when the parties began dating in 2021, the husband was authorized to work in the U.S. and had a pending asylum case. The wife was a U.S. citizen.

They signed a premarital agreement and got married in a civil ceremony in October 2021.  They talked about having a traditional ceremony in India with the husband’s family, but the husband would need a green card to be able to return to the U.S. if they went to India.

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The court in a Texas divorce case may appoint a receiver to protect and preserve the property of the parties. TEX. FAM. CODE § 6.502(a)(5).  The receiver only has the powers authorized by the court. The receiver’s role is to receive and preserve the property for all interested parties’ benefit.  The receiver must exercise ordinary care in performing their duties. Receivers may be appropriate in high net worth divorces with complex assets or where there are concerns a party may hide or misuse assets.  In a recent case, a former husband appealed a trial court order terminating receivership, discharging the receiver, and granting turnover relief to the wife.

Appointment of Receiver

The husband petitioned for divorce in 2009.  The court appointed a receiver in 2011 and ordered that he was to take necessary actions to secure payments and manage, control and dispose of the husband’s property. He was also authorized to pay the husband’s living expenses, legal fees and expenses, and court-ordered obligations.

The receiver was subsequently ordered to take possession and control of certain of the husband’s assets, including property in his bankruptcy estate and any exempt retirement accounts. The court instructed the receiver to pay the husband’s living expenses of $5,000 per month, obligations to the wife and minor children, court-ordered obligations to third parties, and up to $1,500 in unexpected expenses of either party, but not more than $6,000 in any four-month period without a court order.

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Generally, either party in a Texas divorce is entitled to demand a jury trial pursuant to Tex. Fam. Code Ann. § 6.703.  A party seeking a jury trial must file a timely request.  If the jury trial is available to a party as a matter of right, the court generally must grant the request unless doing so would injure the other party, disrupt the docket, or impede the court’s business.  Halsell v. Dehoyos.  A party in a civil case may waive the right to a jury trial in some circumstances, including agreeing to a bench trial, not timely requesting a jury trial or paying the fee, not appearing for trial, or not objecting to a bench trial.  In re Marriage of Harrison. In a recent case, a husband appealed a divorce decree after the trial court held a bench trial following his timely request for a jury trial.

According to the appeals court’s opinion, the parties married in 1986 and the wife petitioned for divorce in June 2020.  They accused each other of fraud against the community and cruel treatment. Each sought a disproportionate share of the marital estate and requested reimbursement to the community estate.

The trial court appointed a receiver to take possession and control of the assets, including rental properties and a business.

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