Divorce

Texas Appeals Court Concludes Agreement for Business Distributions Was Not Ambiguous in High Net Worth Divorce

Published on: October 22, 2025 | by Francesca Blackard

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.

Texas Appeals Court Affirms Characterization of Parental Gift as Separate Property

Published on: October 15, 2025 | by Kelly McClure

The court in a Texas divorce case must divide the estate in a “just and right” manner. Property acquired by either spouse during the marriage, except separate property, is community property. Tex. Fam. Code § 3.002. Separate property includes property acquired by a spouse by gift. Tex. Fam. Code § 3.001. There is a rebuttable gift presumption for property conveyed by a parent to a child. The presumption can be rebutted by clear and convincing evidence that the parent lacked donative intent. A former husband recently challenged characterization of certain property the wife claimed had been gifted to her, as well as a provision stating the wife was entitled to file taxes as head of household, and a number of other issues.

The wife bought a new home in July 1999. She and her father were listed as the grantees on the deed, but the husband put $25,000 down. The parties got married that September and lived in the home. The wife’s father’s interest in the home was transferred to the husband in October 2000.

The husband worked as an engineer when they married but was laid off in 2007. At the time of the trial, he had not had full-time employment since that lay-off. He had received a severance and used it for bills and living expenses until it was depleted. The husband cared for the parties’ young child while the wife worked full time.

Texas Appeals Court Dismisses Appeal of Order Requiring Ex-Husband to Pay $100,000

Published on: October 8, 2025 | by Francesca Blackard

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.

Attempted Revocation of Consent to Settlement Agreement Too Late in High Net Worth Texas Divorce

Published on: September 21, 2025 | by Francesca Blackard

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.

Texas Appeals Court Upholds Post-Marital Agreement Giving Ex-Husband Millions More than Ex-Wife

Published on: September 15, 2025 | by Kelly McClure

A Texas postnuptial agreement is not enforceable if the party proves that it was not signed voluntarily or that it was unconscionable and they were not given a fair and reasonable disclosure of the other party’s property or financial obligations, did not voluntarily and expressly waive disclosure in writing, and did not have or reasonably could not have had adequate knowledge of the other party’s property or obligations. Tex. Fam. Code § 4.105. A former husband recently challenged a finding the parties’ postnuptial agreement in a high net worth divorce was unenforceable.

The parties married in 1991 and the wife petitioned for divorce in 2019. She voluntarily non-suited that case and the parties signed a postnuptial agreement. The wife filed for divorce again in 2022. She argued the agreement was unconscionable and she had entered into it involuntarily.

According to the appeals court, the evidence showed the husband was not represented by an attorney at the time. The wife emailed him links to websites about postnuptial agreements. The husband testified they drafted an agreement that day. The wife denied being involved with drafting the agreement. The husband testified she told him her attorney would review it and he agreed to reimburse her for the fees. She contacted her attorney at some point and signed the non-suit order. The court granted the non-suit the same day the wife’s attorney filed it. The following day, the parties signed the agreement in front of a notary, but the wife’s attorney was not present.

Court Grants Ex-Husband’s Request to Divide Ex-Wife’s Colorado Vacation Home 14 Years Post Divorce

Published on: August 27, 2025 | by Francesca Blackard

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.

Real Estate Lost Separate Property Character When Transferred to LLC

Published on: August 22, 2025 | by Kelly McClure

Real estate investments can lead to complex issues for property division in a Texas divorce, especially if there are co-owners or business entities involved. A former husband recently challenged the property division in his divorce, which characterized certain property as his wife’s separate property and awarded his father-in-law a 50% interest in a piece of real estate.

The parties moved to Texas from the U.K., intending to purchase real estate in Austin. In 2018, the wife’s parents gave her about £250,000, documented as a gift in a letter. The wife put £214,000, which totaled a little over $248,000, into a joint account. The funds were used for 97.19% of the purchase price of a property identified by the court as “the Webberville property.” The purchase and deed were in only the husband’s name based on advice from an immigration attorney.

The parties purchased “the Gunter property” with the wife’s father in late 2019. They did not have a written contract regarding the co-ownership, but the wife’s father testified they agreed he would put 50% down and own 50% of the property. He had signed a letter in November of that year, however, stating the funds he put toward the purchase were a gift with no expectation of repayment. The husband told him having only the couple on the title would facilitate the purchase, but he would amend it to add the wife’s father. The father was not added, but the husband did give him property and loss statements for the property and pay him $14,000 as his share of the rental income.

Former Husband Failed to Trace Separate Property from Alleged Gift in High Asset Texas Divorce

Published on: August 13, 2025 | by Kelly McClure

Large inheritances, trusts, and gifts can complicate the property division in a Texas divorce. A spouse’s separate property includes the property they received during the marriage through gift, descent, or devise. Tex. Fam. Code § 3.001. In a recent case, a former husband challenged his divorce decree that characterized mineral rights he obtained from his mother’s trust as community property.

According to the opinion, when the husband’s mother died, she left a trust for the benefit of the husband’s father during his lifetime. The trust included mineral rights to certain property, which the husband’s father transferred to the husband and his siblings on November 1, 2009. The deed stated the grantor transferred the mineral rights to the husband and his five siblings “[f]or an adequate consideration paid and received.”

The husband testified his father gifted each sibling $12,000 from their mother’s estate to purchase the mineral rights. He presented a carbon copy check for $12,000 dated November 19, 2009, but it did not have an account number, payor name, or signature. A bank statement for the parties’ joint account reflected a $12,171 deposit on November 23 and a check for $11,130.50 on December 3. Those records did not indicate the source of the funds or who deposited them. They also did not show who wrote the check or who received it.

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.