Articles Posted in Property

The community estate must be divided in a “just and right” manner in a Texas divorce, but that does not always mean an equal division. In a recent case, a former husband challenged a property division that awarded the wife about 70% of the community estate, along with a money judgment of $365,000.

The parties got married in 1998 and stopped living together in 2021.  The husband petitioned for divorce in 2022, alleging insupportability and requesting a disproportionate share of the community estate.  The wife also alleged insupportability and adultery by the husband.  She also alleged the husband committed fraud on the community estate and requested a disproportionate share of the estate.

The trial court awarded the wife about 70% and the husband about 30% of the community estate.

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Characterization of property can be a significant issue in a Texas divorce.  The Texas Family Code includes a presumption that property owned by a spouse at the time of divorce is community property, but this presumption can be overcome by clear and convincing evidence the property is the spouse’s separate property.  Separate property includes property owned by a spouse before the marriage and property inherited during the marriage.  In a recent case, a former husband challenged the trial court’s award of certain property to the wife after declaring it had become community property.

The husband owned certain real property before the parties married in July 2020. The wife filed for divorce in December 2021.  The wife conceded that property had been the husband’s separate property.  In March, 2021, the husband signed a general warranty deed.  That deed listed husband, “a single man,” as the grantor and husband, “a married man,” as the grantee, with consideration of 10.00 “and other good and valuable consideration.”

The wife asked the court to grant a partial summary judgment determining the property was converted to community property.  She submitted a copy of the deed and an affidavit from her attorney as summary judgment evidence.

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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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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.

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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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A former spouse may want to appeal their Texas divorce decree, but in some cases, actions taken after the divorce decree is entered can preclude a party from appealing.  In a recent case, a former wife was barred from challenging certain aspects of the divorce decree by the acceptance of benefits doctrine.

The wife filed for divorce in January 2018. The court rendered judgment in late December 2023 and signed the decree the following January. The wife appealed, arguing the trial court erred in admitting certain evidence, in finding that a condominium was the husband’s separate property, and in awarding the husband an equalization payment.

Acceptance-of-Benefits Doctrine

Property characterization can be a significant area of contention in Texas divorces, particularly in high net worth divorces or those in which one party entered the marriage with significantly more assets.  Texas law presumes that property possessed by either spouse during or on dissolution is community property.  That presumption may be rebutted by clear and convincing evidence the property is separate. Tex. Fam. Code § 3.003. Property conveyed by one spouse to the other is generally presumed to be a gift.  Clear and convincing evidence the conveying spouse did not intend to gift the property is needed to rebut the gift presumption.  A former husband recently challenged characterization of the marital residence as the wife’s separate property despite execution of a general warranty deed granting him an undivided one-half interest.

The parties got married in 2001 and the wife petitioned for divorce in 2021. The trial court found the marital home was the wife’s separate property.  According to the appeals court’s opinion, she bought it two years before the marriage and refinanced it in 2003.  She also signed a general warranty deed that granted the husband an undivided half interest. The court found the wife did not intend to gift the property to the husband and provided an alternate reason for executing the warranty deed.  The court also found refinancing had not changed the property’s character.  The trial court awarded the wife conditional appellate attorney’s fees if the husband appealed to the Court of Appeals or the Supreme Court of Texas and the wife “substantially prevail[ed].]”

The husband appealed the home’s characterization and the conditional appellate attorney’s fees award.

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Ideally, after a Texas divorce, the parties will cooperate and take any actions needed to sell or transfer property and resolve outstanding issues, but that does not always happen. A Texas appeals court recently considered a case in which a former wife alleged the former husband was preventing the sale of jointly-owned property.

Divorce Case

The parties divorced in March 2020. According to the appeals court’s opinion, the final divorce decree found that a particular piece of real property was community property and awarded each party 50% as their separate property, leaving them tenants in common.  The decree did not address sale or partition of the property.

Second Lawsuit

A couple of months after the decree was signed, the former wife filed suit against the former husband, seeking an order for the sale of the property and partition of the proceeds. She also requested attorney’s fees, expenses, and interest. This lawsuit was ultimately consolidated into the divorce case. The court held a bench trial and signed an order finding the parties were co-tenants and that the property was not subject to partition in kind. The order required the property be listed by June 1, 2022 and that the parties to take all necessary steps and execute any necessary documents to facilitate the sale.  The court also ordered that any proceeds after payment of any encumbrances on the property be split equally between the parties. It did not address the wife’s request for fees, expenses, and interest.

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A Texas property division must be “just and right,” but that does not necessarily mean equal. A court may consider a party’s fault in the division when determining how to divide the property, but it may not use the property division to punish the at-fault spouse.  A former husband recently challenged his divorce decree, arguing in part that the court abused its discretion by not considering the wife’s adultery in its property division.

According to the appeals court, both parties were from India, but the husband was working in Texas prior to the marriage.  The parties got married in India in 2004 and wife moved to Texas with the husband.  They had two children together.

The husband petitioned for divorce on the grounds of adultery in October 2018. He asked the court to award him the marital residence.  In her counterpetition, the wife alleged the husband had committed acts of cruelty. Both parties alleged fraud on the community by the other spouse.

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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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