Articles Tagged with agreement

iStock-654702696-300x200One asset that many Texans do not consider their spouse to have an interest in is their 401(k) or any other retirement fund that they have been slowly building during the course of their marriage. Having to divide up your retirement funds may throw a wrench into one’s retirement plans, but, where possible, courts often award retirement accounts to the spouse in whose name they are held. Provided the somewhat-ambiguous “just and right” standard is met, Texas divorce courts have wide discretion to divide up individual assets as they see fit. This may involve splitting each asset, such as 401(k), and dividing the funds therein between the spouses. However, more commonly, courts attempt to award whole assets to either party to avoid an overly complicated, and perhaps unnecessary, division of property.

With this in mind, it is important to focus aspects of your case at trial on why the court should award your 401(k) to you. Factors such as your role in contributing to it, your need for future support, the value of assets in your spouse’s control, your and your spouse’s relevant incomes, which spouse is appointed primary conservator of their children (if any), and many others can be useful to craft a compelling case to keep your 401(k) plan (or any other asset).

In addition, you can sometimes increase the likelihood that you keep your 401(k) post-divorce by entering into a settlement agreement with your spouse. In Texas, spouses are free to enter into settlement agreements to resolve one or more aspects of their divorce, such as the division of their community estate. Settlement is an important process in a Texas divorce, because it can often be the best way to ensure that you retain your hard-earned nest egg and any other assets that you consider important.

iStock-1287431987A family business can complicate the property division in a Texas divorce. A recent case considered whether a husband could compel arbitration to enforce a buyout provision in a company agreement during the divorce proceeding.

The parties formed a limited-liability company together during the marriage, with each owning a 50% membership interest.  The husband subsequently petitioned for divorce and the wife filed a counterpetition. Both attached the standing order required by the Travis County District Clerk to protect the parties and preserve their property while the case is pending.  The standing order applies to all divorce suits filed in Travis County (and many other counties have similar standing orders, such as Dallas, Collin, Denton, Rockwall, and Tarrant Counties) and prohibits parties from taking certain actions that would harm or reduce the value of the property and from selling or otherwise alienating property belonging to either party.

Wife Seeks to Compel Arbitration on Business Disputes

The husband sought injunctive relief and temporary orders to address disputes relating to operation of the business.  The wife asked for those disputes to be resolved according to the company agreement, which required any court proceeding brought by one owner against the other be submitted to mediation first and then to binding arbitration if not resolved. The parties were required to go to mediation and arbitration and the arbitrator entered an award regarding management and control of the business.  The wife moved to enforce the arbitration award and the court entered temporary orders in accordance with that award.

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iStock-1183385986-scaledTexas divorce cases can involve multiple areas of law. Contract law applies to pre-marital and post-marital agreements. Contract law may also apply to agreements the parties enter into as part of a divorce.  In a recent case, a portion of a wife’s claims for contractual alimony was barred by the contract statute of limitations.

When the parties divorced in 2012, they entered into a written agreement.  Their divorce decree included a provision for “Contractual Alimony,” with the parties agreeing that the husband would pay the wife $4,000 per month, payable on the first of the month with a five-day grace period before the payment would be considered late.  The contractual alimony was to be paid from June 2013 to May 2015. The decree further stated that the wife could accelerate the payments if the husband defaulted and failed to cure within 30 days of receiving notice of intent to accelerate.

Wife Moves to Enforce Contractual Alimony

The wife moved to enforce the alimony requirements on March 26, 2019. She alleged the husband had failed to make the payments starting in December 2013.  She asked the court to order him to pay the past due payments, interest, and fees and costs.

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iStock-178756342When a divorcing couple reaches a Mediated Settlement Agreement (“MSA”) that meets the statutory requirements, the parties are entitled to a judgment on that MSA. Tex. Fam. Code Ann. §§ 6.602(c).  In some cases, however, things can change after the MSA is agreed upon. In a recent case, a wife challenged the way a court addressed changes arising after the MSA was executed, but before the final decree of divorce was entered.

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