Property

Texas Appeals Court Vacates Property Division After Husband Revokes Consent to Agreed Division

Published on: June 26, 2023 | by Kelly McClure

When parties to a Texas divorce can reach an agreement on property division or other issues, they may be able to resolve their case more efficiently and with less hostility than can occur with prolonged litigation. In some cases, however, a party may learn information after initially agreeing to a division that that changes their position. When parties consent to an agreed judgment, their consent must exist when the court renders the judgment. They are able to revoke consent until the judgment is rendered. An agreed judgment cannot be rendered if a party has withdrawn consent. In a recent case, a husband appealed an “agreed” judgment, arguing he had withdrawn his consent before the court rendered the judgment.

According to the opinion of the appeals court, the parties got married in 2005. The wife filed for divorce in early August 2022. She expressed a belief the parties would reach an agreement on the property division, but asked for a just and right division if they did not do so. A couple of months later, she filed an affidavit stating she and the husband had entered an agreement for division of the debts and property. She further stated she had submitted an agreed decree that had been signed by both parties and contained the agreement. She asked the court to approve the agreement.

The husband filed a counterpetition, alleging the wife had breached her fiduciary duty and committed constructive fraud, waste, and conversion. He alleged she conveyed more than her own share of the community estate to enrich herself and defraud him. He alleged damages of about $100,000. He asked the court to set aside the transfer and award him damages.

Legal Description of Property Controls Over Address in Texas Husband’s Quitclaim Deed to Wife

Published on: June 21, 2023 | by Kate Mataya

When one spouse transfers property to the other spouse by deed, there is a rebuttable presumption the property was gifted to the other spouse as separate property. A deed must contain a sufficient description of the property. In some cases, there may be mistakes or conflicting information in the deed. When a court interprets a deed, it must determine the parties’ intent as expressed in the deed. A wife recently challenged a court’s interpretation of a quitclaim deed and the resulting characterization of the property based on a deed that stated the address for one tract of land but the legal description of another.

The husband bought a house and 23 acres and paid off the mortgage before the marriage. He also sold two of those acres and a mobile home before the marriage. The parties lived in the house on the 21-acre lot after the marriage. They subsequently bought back the two-acre tract and the mobile home.

Quitclaim Deed

Before he petitioned for divorce, the husband signed a quitclaim deed that stated the address of the 21-acre tract, but the legal description of the two-acre tract. The quitclaim deed described the property as 2 acres and identified the make, model, and serial number of the mobile home. The wife asked the court to characterize the 21 acres and house as her separate property based on the quitclaim deed. She argued the deed conveyed the house and 21 acres to her, but the husband contended that it referred to the two-acre tract and mobile home.

Texas Wife Not Awarded Disproportionate Property Division Despite Allegations of Cruelty and Infidelity

Published on: June 6, 2023 | by Kelly McClure

A court’s division of property in a Texas divorce must be just and right. A just and right division does not have to be equal and may be disproportionate in some circumstances, including fault such as adultery or cruelty. A wife recently challenged a property division in which the trial court did not award her a disproportionate share of the community estate in light of her allegations of adultery and cruelty.

Alleged Cruelty and Infidelity

The wife testified the husband had multiple affairs during the marriage, according to the appeals court’s opinion. She also testified he had physically abused her. She said he had beaten her after she had surgery, resulting in her stitches breaking open. She further testified that he started hitting her again when she came home from the doctor and she got a kitchen knife to defend herself. She said she held the knife in front of her and “just the point of the knife” cut the husband when he got in her face, but she did not deliberately stab him. She testified the injury only needed a bandage, but the husband went to the doctor so he could later use it against her.

She testified she did not have any documentation of the husband’s alleged affairs. She also did not offer any documentation of her alleged injuries.

Texas Court Characterizes Property Conveyed by Husband’s Parents as Community Property

Published on: May 28, 2023 | by Kelly McClure

In a Texas divorce, there is a presumption that property possessed by either party during or on dissolution is community property. Tex. Fam. Code Ann. § 3.003(a). Property’s characterization is determined by inception of its title. In a recent case, a husband challenged a trial court’s characterization of property conveyed by his parents.

Conveyance of the Property

According to the appeals court’s opinion, the husband acquired the property from his parents during the marriage. The deed was labeled a warranty deed. It identified the parents as the grantors and the husband, “A MARRIED PERSON,” as the grantee. It stated consideration of $10 and “other good and valuable consideration.” It also stated the grantor “grants, sells, and conveys to Grantee the property.” A corrected deed was filed in 2015 changing the legal description.

The wife testified the husband’s parents were paid $1,750 for the property from a joint bank account. The husband and his father each testified that just $10 was paid as consideration for the property. Both spouses were listed on the construction loan application for building the home on the property. That application indicated the title would be held “Jointly with Spouse.”

Texas Appeals Court Reverses Spousal Maintenance Award Due to Lack of Evidence of Expenses

Published on: May 21, 2023 | by Francesca Blackard

A Texas divorce case can become more complicated for spouses with a child with complex medical needs. In addition to addressing issues related to custody and decision-making, the divorce may also have to address spousal maintenance for the child’s primary caregiver. In a recent case, a husband appealed an unequal property division and a spousal maintenance award in favor of the wife, who acted as primary caregiver for the children.

According to the appeals court’s opinion, the parties had preterm triplets, one of whom was a “medically fragile child,” “Andy.” The wife stopped working outside the home and became their primary caregiver.

The husband filed for divorce in 2019. The wife subsequently negotiated a job with the non-profit she co-founded.

House Bought Before Marriage Declared Both Parties’ Separate Property in Texas Divorce

Published on: May 21, 2023 | by Kelly McClure

Atlanta-Property-Division-Attorneys-2-300x198 Pursuant to the Inception of Title doctrine, a property’s character is determined when the party acquires their interest in it. This means that property acquired before the marriage will generally be characterized as that spouse’s separate property in a Texas divorce. In a recent case, however, the court determined that a house purchased solely in the name of the husband before the marriage was the separate property of both spouses.

According to the appeals court’s opinion, the parties started dating in late 1999. The wife moved in with the husband and his grandfather in 2003 or 2004. The husband bought a house from the wife’s parents in 2004 as “a single man,” according to the Deed of Trust and Note and both parties moved into it. They deposited their paychecks into a joint account from which the mortgage and property taxes were paid. They got married in July 2005 and lived together in the house until 2020.

Divorce Trial

The wife petitioned for divorce and ultimately requested reimbursement to the community estate. She asked for 50% of the community estate and 50% of the husband’s separate property. She argued the house was both parties’ separate property because they had lived together and both paid for it. The husband argued it should be his separate property.

Characterization of Personal Injury Recovery in Texas Divorce Cases

Published on: May 19, 2023 | by Francesca Blackard

iStock-178756342-300x199 Under Texas family law, property acquired by a spouse during the marriage is community property, unless it meets the requirements of separate property. Pursuant to Tex. Fam. Code § 3.001, personal injury recoveries are the separate property of the injured spouse, but recovery for lost earning capacity is community property. Property possessed by a spouse during or on dissolution is presumed to be community property, so a spouse claiming a personal injury recovery is their separate property must prove by clear and convincing evidence what portion is separate. A wife recently challenged the property division in her Texas divorce after the court concluded monthly payments from a personal injury settlement were the husband’s separate property.

According to the appeals court’s opinion, the wife had primarily been a homemaker during the marriage, but she sometimes worked part-time.

The husband was seriously injured at work in 2006. He was found to be incapacitated and the wife acted as his guardian in the resulting lawsuit. In the personal injury settlement agreement, the wife agreed, on behalf of her husband and herself, to release all claims against the defendants. The defendants’ insurance companies agreed to immediate cash payments and monthly payments for the rest of the husband’s life. The settlement provided that $1,150,000 of the cash payments was for the husband’s benefit and $50,000 would go to the wife. The settlement agreement also stated the monthly payments were for the husband’s benefit. The monthly payments were secured through the purchase of an annuity pursuant to the settlement agreement. The agreement also stated that funds were “damages on account of personal physical injuries or sickness” pursuant to the Internal Revenue Code. It also provided that the husband and wife were responsible for paying their attorney’s fees, court costs and case expenses, and any medical bills and liens.

Texas Appeals Court Upholds Spousal Maintenance and Reimbursement

Published on: May 17, 2023 | by Kelly McClure

iStock-531351317-300x200 Texas spousal maintenance is intended to provide “temporary and rehabilitative” support for a spouse who does not have the ability or assets to support themselves or whose ability to do so has deteriorated while they were engaged in homemaking activities. Courts may award spousal maintenance only in limited circumstances if the parties meet the requirements under the Texas Family Code.

Tex. Fam. Code § 8.053 provides there is a rebuttable presumption that maintenance is not warranted pursuant to Section 8.051(2)(B) unless the spouse exercised diligence in earning sufficient income to provide for their reasonable needs, or in developing the necessary skills to provide for their reasonable needs during separation and while the divorce case is pending. Even if a spouse otherwise qualifies under Section 8.051(2)(B), they must either show that they exercised diligence or rebut the presumption that maintenance is not warranted.

A husband recently challenged a spousal maintenance award in favor of the wife and an order to pay a reimbursement claim to the community estate based on improvements made to his separate property.

Texas Appeals Court Upholds Divorce Decree with No Payment Mechanism or Schedule for Owelty Lien

Published on: May 15, 2023 | by Francesca Blackard

BSgavelx1200-768x432-1-300x169 In dividing property in a Texas divorce, the court must effect a just and right division. If the marital residence is part of the community estate and one party will keep it, the court must address the other spouse’s share of the equity. The court may do this by placing an owelty lien on the property. An owelty lien creates an encumbrance on the property that follows it upon a sale. The lien must be paid before the net proceeds of the sale are distributed to the spouse. In a recent case, a mother challenged a divorce decree that did not include a payment mechanism or schedule for her owelty lien, while the father challenged the specifics of the geographic restriction imposed on the primary residence of the child.

The father asked the trial court to appoint both parents joint managing conservators of their child. He asked neither parent be given the exclusive right to determine the child’s primary residence and that the court impose a geographic restriction. He requested the trial court to divide the estate in a just and right manner. He asked that the mother receive a lien on the marital estate for half of the net equity of the home.

The mother asked for the right to designate the child’s primary residence. She also asked the trial court to award her half the market value of the home.

Marital Home Built on Gifted Lots Retains Separate Property Characterization in Texas Divorce

Published on: May 13, 2023 | by Francesca Blackard

iStock-483613578-300x204 The characterization of property in a Texas divorce is generally determined by the property’s character when the spouse acquired it. Separate property is property a spouse owned before the marriage or acquired during the marriage through gift, devise, or decent. Improvements made to separate property are generally also separate property because they are not divisible from the land. Community property is property acquired by either spouse during the marriage that is not separate property. In a recent case, a wife challenged a court’s characterization of the marital home as community property.

Home Built During Marriage

According to the opinion of the appeals court, the parties got married in 1995. In 2000, the husband’s mother transferred two lots to both of the parties by a gift deed. They built the marital home on those two lots during the marriage. The wife moved out of the home when the parties separated in 2015. The husband had stayed there and paid the household bills and property taxes.

The trial court ordered the home to be sold. It awarded 75% of the net proceeds from the sale of the home to the husband and the other 25% of the net proceeds to the wife.