Property Rights

Texas Divorce and Business Ownership: When Spouses Are Also Partners

Published on: April 26, 2026 | by Kelly McClure

The dissolution of a marriage involving spouses who serve as co-owners or partners in a closely held business presents unique challenges under Texas law. When marital discord overlaps with corporate governance, the court must navigate the complexities of both the Texas Family Code and the Texas Business Organizations Code. These cases frequently involve high-stakes litigation where the fiduciary duties owed to a business entity intersect with the duties owed to the community estate.

In a recent matter originating in San Antonio, a jury awarded a verdict exceeding $20 million in a dispute involving a prominent automotive dealership partnership. The litigation involved long-term business partners who were also spouses, illustrating the volatility that arises when a professional partnership is entangled with a crumbling marriage.

The dispute centered on allegations of breach of fiduciary duty and the mismanagement of dealership assets during the pendency of the divorce. The divorcing couple has a variety of other lawsuits and countersuits against each other, also awaiting decisions in the Texas court system.

Enforcing Post-Mortem Property Divisions

Published on: April 16, 2026 | by Kelly McClure

The recent and prolonged litigation between the estate of the late actress Shannen Doherty and her former spouse, Kurt Iswarienko, is a real-world example of the survival of property claims following a party’s death. While Doherty signed her divorce settlement just one day before her passing in July 2024, the legal battle did not conclude with her death. Instead, her estate was forced to initiate litigation to enforce the terms of that agreement, divorce decree, including the sale of a shared property in Dripping Springs, Texas. The court’s finding shows that a signed settlement creates enforceable contractual rights that survive the decedent.

In Texas, while the death of a spouse generally abates a pending divorce, the existence of a signed, binding agreement or a rendered judgment fundamentally alters the jurisdictional landscape, shifting the matter from a family law dispute to a probate enforcement action.

Abatement and the Exception for Rendered Judgments

Texas Supreme Court Reverses and Remands Divorce Property Division Case

Published on: January 21, 2026 | by Kelly McClure

Even after a divorce decree becomes final, disputes may arise regarding compliance with the decree’s property provisions. In a recent case, the Texas Supreme Court examined whether a trial court properly exercised its jurisdiction under Chapter 9 of the Texas Family Code when enforcing a divorce decree involving community property. Morrison v. Morrison, No. 24-0053 (Tex. Jan. 30, 2026)

The parties’ divorce decree awarded each spouse defined interests in the marital estate, including the marital residence. After the divorce, a dispute arose concerning one spouse’s alleged failure to maintain property awarded under the decree, which ultimately affected the value of the marital home. The aggrieved spouse sought relief in the trial court, alleging a violation of the decree and requesting enforcement.

Enforcement Versus Modification

Lori Loughlin, Mossimo Giannulli, and the Sale of Real Estate in Texas Divorces

Published on: January 19, 2026 | by Francesca Blackard

Public reporting indicates that actress Lori Loughlin sold a luxury Palm Desert property after announcing her intention to divorce Mossimo Giannulli in 2025. There was no public dispute between Loughlin and Giannulli over the sale of their home, which is notable because our attorneys often see disputes over high-value real estate—whether it should be sold, retained, or awarded to one spouse. These questions frequently fuel property division litigation in Texas divorces.

Texas is a community property state, and trial courts must divide community property in a manner that is “just and right.” A ‘just and right’ division requires the trial court to divide the marital estate equitably. “Just and right”, as established in a Supreme Court of Texas case, Murff v. Murff, does not always mean an equal division, particularly in high-net-worth cases involving complex assets. (Citation: Murff v. Murff, 615 S.W.2d 696, 699 (Tex. 1981).)

Our Texas family law attorneys follow a multi-step process to determine how real estate should be divided upon divorce, and to ensure the fair division of real estate (and other assets) for our clients.

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.

Court Has Broad Discretion in Determining Texas Custody

Published on: September 29, 2023 | by Kelly McClure

The court’s primary consideration in determining Texas custody is the best interest of the child. Tex. Fam. Code § 153.002. There is a rebuttable presumption that the parents being named joint managing conservators is in the child’s best interest. Tex. Fam. Code § 153.131. When a court names parents joint managing conservators, it must also designate which of them has the exclusive right to determine the child’s primary residence. Custody matters are highly fact-based, and the court generally has broad discretion in determining the child’s best interest and deciding who will have the exclusive right to determine the child’s primary residence. A father recently challenged the custody, child support, and property division in his divorce.

Custody

The parties separated after fourteen years of marriage. They had two children together. The trial court named both parents joint managing conservators with the mother having the exclusive rights to designate the children’s primary residence, receive child support, and make educational decisions.

According to the appeals court, the record showed that one of the children said she would “rather stay with mom.” The mother testified she had been the parent who took care of the children when they were sick, took them to medical appointments, prepared food, helped with homework, and put them to bed. She testified she thought it was in the children’s best interest to live with her. She alleged the father drank too much around the children.

Texas Legislative Update

Published on: August 16, 2023 | by Brandon Joseph

During its most recent session, Texas lawmakers adopted and passed several amendments and updates to the Texas Family Code, which were then formally signed into law by the Governor.

These revisions and additions to the Texas Family Code impact numerous areas of family law, including but not limited to: (1) suits for the dissolution of marriage; (2) suits affecting the parent-child relationship; (3) protective orders; and (4) discovery in cases filed under the Texas Family Code.

Ranging from modifications to elements necessary to prove a claim, clarifications to existing codified law, and the removal of automatically triggered disclosure requirements, family law practitioners throughout the State of Texas should familiarize themselves with these changes and how such changes impact their practice.

Proving Separate Property in a Texas Divorce

Published on: September 6, 2022 | by Kelly McClure

iStock-483613578-300x204 Some people may assume that property held in only one spouse’s name is that spouse’s separate property, but that is not necessarily the case. In Texas, property’s character is determined based on when and how it is acquired. Additionally, in a Texas divorce, property acquired during the marriage is presumed to be community property.

In a recent case, a husband challenged a court’s characterization of certain property held in his name as community property and awarding it to the wife.

According to the appeals court’s opinion, the parties acquired multiple pieces of real estate, some in both their names and some in only the name of the husband, while they were married. When they divorced, the three properties that were the subject of the appeal, referred to by the court as the “Three Properties,” were held by the husband, but the wife alleged they were the community property.

Invited Error in Texas Divorce Case

Published on: August 8, 2022 | by Francesca Blackard

iStock-1270267953-300x200 Even when parties seem to agree on issues related to Texas property division, disputes may still arise. In a recent case, a husband challenged a trial court’s treatment of certain property after seemingly agreeing to that treatment during the hearing.

The husband petitioned for divorce in May 2019. The husband and wife stipulated that a particular parcel of land was the husband’s separate property, but the mobile home on that property was the wife’s separate property.

The husband testified he wanted to purchase the mobile home or sell the parcel and mobile home together and equally divide the proceeds. He expressed a preference to buy the mobile home himself but also said there were buyers interested in purchasing them as a single asset. The wife testified she wanted to sell the mobile home to the husband for $15,000 or alternatively to sell both together and divide the proceeds equally. The husband responded “Yes” when asked if he agreed to sell the parcel and the mobile home together and split the proceeds. When he was asked about division of another piece of property, he said he thought the parties had reached agreement on the five-acre parcel and mobile home and thought they could also reach agreement on the larger parcel. The trial court specifically told the husband that he was “not going to have the five acres and the mobile home. . .”

Separate Property and Tort Claims in Texas Divorce

Published on: April 7, 2022 | by Francesca Blackard

Divorce-property-fraud-300x273 Property in the possession of either spouse at the time of dissolution of marriage is presumed to be community property under Texas family law. A spouse may rebut this presumption by tracing and clearly identifying the separate property. That spouse must present evidence of the time and means of acquisition of the property. The property remains separate if the spouse can trace the assets back to separate property. Testimony is generally not enough to overcome the community-property presumption. The spouse must have clear and convincing evidence the property is separate. Tex. Fam. Code § 3.003.

An appeals court recently considered tort claims within a divorce case arising from the purchase of a business. When the parties married in 2014, the wife owned a 49% interest in her optometry practice. She offered to buy the remaining interest in 2015. Her husband and another attorney in his firm helped negotiate the deal.

Wife Brings Tort Claims in Divorce Suit

The wife petitioned for divorce in September 2018. She added claims of fraud, theft, and breach of fiduciary duty to her petition, arguing husband failed to structure that purchase as separate property and allowed her separate property to be converted to community property.