Property

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.

Texas Supreme Court Reaffirms Trial Court’s Characterization of Property Based on Financial Tracing

Published on: April 18, 2026 | by Francesca Blackard

Texas law draws a firm distinction between separate and community property when dividing assets during a divorce. That distinction often plays a significant role in high-net-worth divorce litigation. The dispute in a recent Texas Supreme Court case, Landry v. Landry, centered on the characterization of two investment accounts held during the marriage.

Factual Background and Procedural History

The husband asserted that the accounts were his separate property because they were funded with premarital assets and proceeds that could be traced to separate sources. The wife challenged that characterization, arguing that all property possessed at the end of the marriage is considered community property. Tex. Fam. Code § 3.002. She supported her argument by evidencing that the funds going into the accounts during the marriage had been commingled with the original contributions and should be treated as community property.

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

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.

Texas Appeals Court Affirms 70/30 Property Division

Published on: December 9, 2025 | by Francesca Blackard

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.

Texas Court Improperly Granted Summary Judgment that Separate Property Was Converted to Community Property

Published on: November 27, 2025 | by Francesca Blackard

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.

Texas Appeals Court Affirms Divorce Decree Awarding Wife Property Conveyed to Her by Husband

Published on: October 29, 2025 | by Francesca Blackard

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.

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.

Court Finds Fraud Based on Husband’s Transfers of Funds to Adult Children in Texas High Net Worth Divorce

Published on: July 22, 2025 | by Francesca Blackard

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.

Acceptance-of-Benefits Doctrine May Preclude Appeal in Texas Divorce

Published on: June 30, 2025 | by Kelly McClure

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