Property

Texas Appeals Court Holds Family Vacation Expenses May Support Constructive Fraud Claim in Divorce

Published on: July 2, 2026 | by Francesca Blackard

Texas courts have long recognized that one spouse may commit constructive fraud on the community estate by disposing of community assets without the other spouse’s knowledge or consent. A decision from the Houston Fourteenth Court of Appeals demonstrates how broadly that principle may apply.

In Wadhwa v. Wadhwa, the court concluded that expenditures for family vacations could be considered as part of a constructive fraud analysis when those expenditures depleted community assets and were undertaken unilaterally during the divorce proceedings. Wadhwa v. Wadhwa, No. 14-23-00521-CV (Tex. App.—Houston [14th Dist.] July 22, 2025).

The Facts of the Case

Refinements to the Texas Family Code Regarding “Mixed-Character” Assets in Divorces

Published on: June 28, 2026 | by Kelly McClure

Texas operates under a steadfast community property framework. Under Texas Family Code § 3.003, all property possessed by either spouse during or at the dissolution of a marriage is presumed to be community property. Overcoming this hurdle requires “clear and convincing evidence,” a stringent standard of proof that frequently forces divorcing couples into a financial war, calling in reinforcements from costly forensic accountants.

The complexity intensifies when a single asset holds both separate and community characteristics. With statutory refinements to Chapter 3 of the Texas Family Code, the legislature has delivered guidance to eliminate judicial ambiguity in high-stakes estates. For business owners, corporate executives, and high-net-worth individuals, these updates dramatically change how complex, “mixed-character” assets are divided.

Executive Compensation: From Subjective Formulas to Rigid Fractions

Texas Appeals Court Affirms Award of Entire Marital Residence to One Spouse

Published on: June 20, 2026 | by Francesca Blackard

Texas is a community property state, but community property does not have to be divided equally in a divorce, as highlighted in a recent decision from the Third Court of Appeals. In Paez v. Rodriguez, the appellate court affirmed a divorce decree that awarded the parties’ entire marital residence to the wife, despite the husband’s argument that the property should have been sold and the proceeds divided. See Paez v. Rodriguez, No. 03-24-00731-CV, 2025 WL 2325163 (Tex. App.—Austin Aug. 13, 2025, no pet.).

The case serves as a reminder that Texas courts are not required to divide community property on a strict 50-50 basis. Instead, courts must make a division that is “just and right,” taking into account the circumstances of the parties and any children affected by the divorce. Tex. Fam. Code § 7.001.

The Facts and the Trial Court’s Decision

Financial Independence During Marriage Does Not Eliminate Texas Community Property Rights

Published on: June 3, 2026 | by Kelly McClure

A recent article discussing separate bank accounts in marriage focused heavily on emotional and relational dynamics between spouses. The article referenced a Journal of Consumer Research study suggesting that couples who merged finances often reported higher relationship satisfaction than those who maintained separate accounts (though outcomes varied depending on communication patterns and financial transparency within the marriage).

These findings speak to marital dynamics, but Texas divorce law, however, operates under a separate statutory framework that does not turn on how spouses organize day-to-day finances during marriage. This framework frequently surprises spouses who intentionally maintain independent finances throughout the marriage.

Community Property Presumption Under Texas Law

Interspousal Gifts and Separate Property Under Texas Law

Published on: May 7, 2026 | by Kelly McClure

A fundamental principle of Texas family law is the distinction between community and separate property. While Texas is a community property state, property acquired by a spouse during marriage by gift, devise, or descent is characterized as that spouse’s separate property. Tex. Fam. Code § 3.001(2).

This characterization remains vital even when parties have executed a premarital agreement (PMA) designed to opt out of the community property system entirely. A recent decision from the Dallas Court of Appeals, In the Interest of A.B., illustrates that even a robust “no community property” agreement does not preclude one spouse from transferring their separate property to the other through a valid interspousal gift. No. 05-25-00039-CV, 2026 WL, Tex. App.—Dallas.

Factual Background

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.