Articles Tagged with Property

iStock-543681178Under federal law, a court may not treat military disability benefits as community property for purposes of property distribution in a Texas divorce case. A husband recently challenged the property distribution in his divorce decree, arguing the court had improperly divided a portion of his military disability benefits.

Trial Court Divides Husband’s Military Retirement Benefits

The wife petitioned for divorce and sought a majority of the community assets.  The court granted the divorce on grounds of insupportability and adultery.  The decree gave the wife 55% of the husband’s disposable military retired pay, attorney’s fees, and conditional appellate attorney’s fees. The husband appealed.

The husband contended the 55% of his disposable military retired pay awarded to the wife erroneously included disability payments. The wife, however, argued the award did not include disability benefits and the decree had specifically awarded him his “VA Disability and Social Security Disability benefits” as separate property.

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iStock-483613578In a Texas divorce, a jury may decide issues regarding the characterization and valuation of property, but the judge is responsible for actually dividing the community property in a just and right manner.  The court may consider a number of factors, including fault, education, ages and physical conditions, financial conditions, and the amount of separate property.  Generally, the court must hold an evidentiary hearing or trial, unless the parties agree on the property division.

Wife Argues Trial Court Did Not Hear Property Issues

In a recent case, a wife appealed a property division, arguing the court failed to hold a hearing on the property division.

The parties married in 2003 and the husband filed for divorce in 2017. The jury did not hear the property division issues, which were reserved for the trial court.  The court stated that it would try those issues during the jury deliberations if there was time or would otherwise schedule a date after the verdict on the issues related to the children.

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does-adultery-affect-alimony-in-idaho-1080x600-1In a Texas divorce, the court must divide the property in a just and right manner.  The requirement is that the division be equitable, but not necessarily equal. The Texas Supreme Court identified several factors courts should consider in Murff v. Murff. These factors include the parties’ physical conditions, education, financial condition, abilities, and ages.   A husband recently challenged a trial court’s division of the marital property following a mediated settlement agreement between the parties.

The parties married in 1999 and the wife initiated divorce proceedings in 2017.  Pursuant to a temporary order, the marital home was sold and about $500,000 in sales proceeds were put into an escrow account.  The court signed an agreed order allowing disbursement of an equal portion of the proceeds to pay each party’s divorce attorneys.  The rest of the proceeds was left in the escrow account.

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In some Texas divorce cases, a party fails to file an answer to the divorce petition or otherwise participate in the divorce proceedings in any way.  When a court divides property in a Texas divorce, it must do so in a “just and right” manner. TEX. FAM. CODE ANN. § 7.001.  However, to do so, the court must have sufficient evidence of the value of the community estate, even if one of the parties does not participate in the proceedings.  Even if their spouse fails to file an answer, the petitioner in a divorce case must present evidence supporting the material allegations in the petition.  If a trial court divides the property without sufficient evidence of the value of the assets to make a just and right division, the division may be subject to reversal on appeal, even if the appealing spouse failed to respond and the court issued a default judgment.

In a recent case, a husband challenged a default judgment granting his wife a divorce and dividing their property, arguing there was insufficient evidence to support the property division.

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A Texas Mediated Settlement Agreement (“MSA”) that meets the statutory formalities is binding and the parties are entitled to a judgment upon it (i.e., the divorce decree must adopt it).  In a recent case, a husband challenged an order issued after the divorce decree that was intended to conform the decree with the terms of the MSA.

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parties executed an MSA. A couple of weeks after the court entered the final divorce decree, the wife moved for clarification of the MSA.  She alleged the final decree did not reflect the MSA, because it failed to confirm certain items as her separate property.  The trial court entered an order confirming those items as her separate property after a hearing.

The husband appealed.

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iStock-654702696For many Texans, their 401(k) plan is one of their largest assets – particularly for those who have made regular contributions throughout their career. On top of that, 401(k) plans often hold symbolic significance above and beyond their sheer dollar value. To some, they represent safety, security, and an end to the monotonous rat race. For others, they are a prize, a badge of honor earned after countless late nights at the office. However, no matter the role they play in your life, the thought of losing half of your hard-earned nest egg can be terrifying. This begs the question: how much of your 401(k) is actually at stake in a Texas divorce? Continue Reading ›

iStock-1215119911A Texas premarital agreement can help protect each party’s assets in the event a marriage ends in divorce. Premarital agreements may also include other provisions, including a requirement to submit certain issues to binding arbitration instead of for determination before a judge or jury. In a recent case, a husband attempted to vacate an arbitrator’s decision, arguing he had exceeded his authority.

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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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Fault in Divorce

iStock-1163040189Divorces may be granted without fault, but Texas still allows divorce to be granted on fault-based grounds in certain situations.  For example, a Texas divorce may be granted in one spouse’s favor if the other committed “cruel treatment” that makes the parties continuing to live together “insupportable.” Tex. Fam. Code Ann. § 6.002.  Physical abuse can constitute cruel treatment, but physical abuse is not required for a Texas divorce court to find cruel treatment.  When the court finds fault-based grounds for divorce, such as cruel treatment, the court may consider the fault in dividing the property. Specifically, the court can award a disproportionate share of the community estate to the spouse who is not at fault. A husband recently challenged such a disproportionate property division in his divorce.

The wife said the husband stopped paying attention to her after his business partnership went sour.  She also said he had called her names and accused her of cheating, in addition to being violent against her around four or five times.

The wife alleged that, during one incident, the husband had closed a door on her arm after he had filed for divorce.  She called the police, and the husband agreed to leave.  The husband, however, claimed that he had simply closed the door after the wife left the room, but she forced it back open.  He claimed the door hit him, then whipped back toward her and hit her elbow.  He said he agreed to leave for a few hours after the police arrived, but ultimately decided to leave permanently so their child would not see them argue.

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What is a Mediated Settlement Agreement?

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A mediated settlement agreement (“MSA”) in a Texas divorce is binding if it meets certain requirements.  It must state that it is not subject to revocation in bold letters, capital letters or underlined text.  It must also be signed by each party and the party’s attorney, if present. Tex. Fam. Code Ann. § 6.602.  Some Texas courts have held that an MSA may be unenforceable if it is obtained by fraud, duress or coercion.

A husband recently challenged an MSA, partly on the grounds that he allegedly signed it under duress.

The parties had been married since 1981.  Some of the property acquired during the marriage was held by a limited partnership in which the parties owned a 95% interest.  In August 2017, the husband was arrested after the wife reported he had threatened her with a firearm.  The wife filed for divorce the very next day.

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