Settlement

Texas Appeals Court Concludes Agreement for Business Distributions Was Not Ambiguous in High Net Worth Divorce

Published on: October 22, 2025 | by Francesca Blackard

Parties in a Texas high net worth divorce with complex assets may desire to reach an agreement regarding the property division. While an agreement is often intended to avoid further litigation, in some cases three may be ongoing disputes. A former wife recently challenged several declarations made by the trial court regarding her former husband’s obligations to pay her amounts received from his business interests.

During the parties’ marriage, the husband acquired significant real estate interests during the marriage, primarily through a group of companies identified by the court as the “KN Companies” and another company. The parties separated in 2009 and executed an informal settlement agreement in 2012 that stated it was “BINDING AND IRREVOCABLE.” This Binding Settlement Agreement (“BSA”) stated that the value of the “Total Community Estate” was $12,154,024 and that 55.75% would go to the husband and 44.25% to the wife.

The agreed final divorce decree was signed in December 2016. The decree stated the parties had separately entered into an Agreement Incident to Divorce (“Agreement”) and incorporated the Agreement into the decree. The court also found the Agreement and ancillary documents (“Final Settlement Documents”) were stipulated to represent an integrated merger of the BSA and, if there were any conflicts, the Final Settlement Documents would control.

Attempted Revocation of Consent to Settlement Agreement Too Late in High Net Worth Texas Divorce

Published on: September 21, 2025 | by Francesca Blackard

A settlement agreement in a Texas divorce can allow the parties an amicable resolution, avoiding lengthy and contentious litigation. In some cases, however, a party may wish to repudiate the agreement or revoke their consent to the agreement. A party may revoke consent to an agreement before rendition of the divorce. See Tex. Fam. Code § 7.006(a). In a recent high net worth divorce case, a former wife challenged the final divorce decree, arguing she had revoked consent to the parties’ settlement agreement.

According to the appeals court, the parties were married for nearly 38 years when they petitioned for divorce. According to the appeals court, the wife’s proposed property division valued the marital estate at more than $5 million. The parties reached an agreement during the trial on April 22, 2024. The trial court stated it would adopt the agreement. It also stated it “will grant [the] divorce based on insupportability and. . .will accept the agreement. . .” After being asked by the husband’s attorney, the court stated it “rendered that today. . .”

Both parties and their attorneys signed a copy of the agreement titled “Judge’s Order” and it was signed by the court and file-marked in April.

Ex-Wife Required to Pay Ex-Husband Proceeds from Sale of His Business Interest

Published on: September 9, 2025 | by Kelly McClure

Mediated settlement agreements and Texas agreed divorce decrees are construed according to standard contract interpretation principals. A former wife recently challenged an enforcement order based on her interpretation of the agreed divorce decree.

The parties got married in 2002. The husband had acquired a business interest in the company for which he worked before the marriage. He sold that business interest in 2020, receiving one payment of a million dollars and four additional deposits totaling more than $1.8 million. Those funds were deposited into multiple accounts. Some of the funds had been spent.

The wife petitioned for divorce in May 2021. She withdrew funds from the parties’ accounts to support her children. Although she repaid some of the withdrawn funds, she did not repay all of it.

Texas Divorce Involving Potentially Conflicting Tax Provisions in Agreement

Published on: July 15, 2025 | by Kelly McClure

Although not always an issue in a Texas divorce, tax matters can become a significant issue, especially in high net worth divorces or divorces involving the division of a business. A Texas appeals court recently decided a second appeal in a case involving a mediated settlement agreement (“MSA”) with potentially conflicting provisions related to the parties’ taxes.

According to the appeals court’s opinion, the parties’ MSA was divided into two parts. Part I was what the parties referred to as the “boilerplate” section and Part II included specific provisions addressing the children and the property division.

Federal tax liabilities were addressed in two provisions, one in each part. The provision in Part I, identified by the appeals court as the “indemnity term,” provided that the parties would equally share any income tax refund or federal tax liabilities from their taxes through 2019, with each holding the other harmless from half of the tax liabilities. The relevant section under Part II, identified by the appeals court as the “IRS regulations term,” stated, “Income Taxes due for 2018 and 2019: According to IRS rules and regulations.”

Divorce Decree Entered by Submission Thrown Out For Failure of Court to Conduct Trial

Published on: October 30, 2024 | by Francesca Blackard

In a high net worth divorce, the parties may want to reach an amicable resolution of property division. In a recent Texas divorce case, a husband challenged the final divorce decree that upheld the parties settlement agreement without giving him notice and a hearing.

The parties got married in March 2021 and stopped living together in January 2023. The entered into a Mediated Settlement Agreement (“MSA”) shortly thereafter.

Proceedings

The wife petitioned for divorce in 2023, asking the court to divide the estate according to the terms of the MSA. The MSA was signed by both parties and notarized. Additionally, both parties had initialed each page. The MSA addressed the division of the community property and liabilities, including personal property, real property, business interests, and debt.

Texas Divorce Decree Must Generally Comply with Mediated Settlement Agreement

Published on: January 31, 2024 | by Francesca Blackard

If the parties in a Texas custody case reach a Mediated Settlement Agreement (“MSA”), the court must enter judgment on the MSA. The MSA is binding if it meets the three requirements set out in Tex. Fam. Code § 153.0071(d). First, it must prominently state that it is not subject to revocation. It must also be signed by the parties. Finally, it must also be signed by any party’s attorney who is present at execution. The court may, however, decline to enter judgment on an MSA if it finds that a party was the victim of family violence which impaired their ability to make decisions and that the agreement is not in the best interest of the child. Tex. Fam. Code § 153.0071(e-1). Unless this exception applies, the trial court generally does not have the discretion to deviate from the MSA and a party is entitled to judgment on the MSA. A court’s order may include terms that are necessary to implement the MSA, but it may not substantially alter the MSA. A father recently challenged a divorce decree that did not compart with the parties’ MSA with regards to where exchanges were to occur.

Mediated Settlement Agreement

The parents had two children together during their marriage. They separated in 2020 and signed an MSA in October 2021. Pursuant to the MSA, the parents would be joint managing conservators and the mother would have the right to determine the children’s primary residence. The MSA further gave the father a standard possession order which would be an expanded standard possession order if he lived within 50 miles of the children. It also provided that the exchange location would be at a particular McDonald’s in Huntsville with a pickup time of 8 p.m. and a drop-off time of 5 p.m. as long as the father and children lived in the current locations, with provisions for changing the location if the parents lived in the same county.

At the hearing, the mother’ attorney claimed that the MSA was intended to state that the parties would only meet in Huntsville once a month instead of for all the exchanges. The father’s attorney argued, however, that the provision stated what the father wanted with regard to exchanges.

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.

Texas Appeals Court Upholds Divorce Decree Following Arbitration Award

Published on: May 23, 2023 | by Francesca Blackard

iStock-1287431987-300x200 Parties to a Texas divorce may choose to pursue alternative dispute resolution to avoid litigation. They may resolve part or all of their disputes through mediation. A mediated settlement agreement (“MSA”) is binging on both parties if it prominently states that it is not subject to revocation, is signed by both parties, and is signed by the party’s attorney, if present. Tex. Fam. Code Ann. § 6.602. In some cases, an MSA may include an arbitration provision, requiring the parties to arbitrate disputes arising from the MSA. A wife recently appealed the divorce decree, arguing it did not comply with the parties’ MSA and that the judgment based on the arbitrator’s award should be overturned.

Mediation and Arbitration

The husband and wife entered into a mediated settlement agreement (“MSA”), agreeing to use a specific realtor to sell their properties. According to the appeals court’s opinion, the husband obtained a new realter after the wife informed him the chosen realtor “declined” to sell their properties. That realtor found errors in the deed and recommended referred them to real estate attorneys.

The parties did not agree on which realtor to use or if they should have the documents corrected by an attorney. Arbitration had been scheduled, with the arbitrator being the same person who had served as the parties’ mediator. The wife obtained new counsel, who objected to the arbitrator due to concerns about impartiality. He also expressed an intention to move for a new trial or set aside the MSA. He alleged the husband’s attorney failed to disclose a working relationship with the mediator before the mediation occurred. However, there were emails showing the husband’s attorney had disclosed to the wife’s previous attorney that she previously had been an intern with the mediator and the wife’s attorney had no objection to the mediator. Additionally, she disclosed the same information to the wife’s second counsel by phone, and the mediator stated before the mediation started that the husband’s attorney had been an intern, and there were no objections.

Discrepancies Between Texas Divorce Decree and Property-Division Agreement

Published on: June 13, 2022 | by Francesca Blackard

iStock-1125625723-300x200 When parties to a Texas divorce agree to a property division, the final judgment based on the agreement must strictly comply with it. The trial court cannot add, change, or leave out material terms. A final judgment based on a property division agreement must be set aside if it is not in strict compliance with the agreement, unless the discrepancy is a clerical error. An appeals court may modify a judgment to correct a clerical error. A former husband recently challenged the property division in his divorce due to a number of alleged discrepancies.

Husband and Wife Submitted Proposed Property Division

According to the appeals court’s opinion, the parties agreed to a proposed property division, identified as “Exhibit A.” The wife testified the division was fair and just. She agreed to split funds in the husband’s IRA equally after he was credited $90,000 as separate property and to split the funds in his “Edge” and “Smart” retirement plans equally.

The husband initially disagreed with the property division in Exhibit A, but later asked the court to approve it. The trial court admitted the document into evidence, asked the parties to draft and sign an agreed final decree.

Texas Final Divorce Decree Constituted Consent Judgment after Revocation of MSA

Published on: April 3, 2022 | by Kelly McClure

“A scroll of a Divorce Decree, tied with a black ribbon on a mahogany desk, with a dead white rose buttonhole from the Wedding Day, with a black pen. Copy space..”

A Texas Mediated Settlement Agreement (“MSA”) must generally include language that it is not subject to revocation, be signed by each party, and be signed by the party’s attorney who is present at the time of execution. Tex. Fam. Code § 6.602(b). If the MSA meets these requirements, it is binding and the court must render a divorce decree adopting it. The judgment must be compliant with the agreement and must not substantively alter it. The parties may revise or repudiate the agreement before the divorce is rendered, unless the agreement is otherwise binding under another law. Tex. Fam. Code § 7.006.

In a recent case, a former wife appealed a divorce decree, arguing the court erred in rendering judgment on a settlement after she revoked her consent. The parties had reached an agreement at mediation and signed an MSA, but only the husband’s attorney’s signature was on the document.

Wife Revokes Consent to MSA

The wife filed a revocation of consent and an objection to the entry of a final divorce decree. She argued the agreement was not valid without her counsel’s signature and was therefore revocable.