Texas Supreme Court Vacates Divorce Filed by Guardian

A Texas marriage may end by either death of a spouse or a court order. Generally, it is clear how a marriage ended, but in some cases, there can be a dispute.  In a recent case, the Texas Supreme Court considered whether a divorce filed by the husband’s guardian resulted in a valid divorce decree before the husband’s death.

The husband had significant assets. He and his fourth wife signed a pre-marital agreement before the marriage in September 2011 and a post-marital agreement, agreeing no community property would be created and each spouse would keep their separate property unless they transferred it to the other in writing or by a will.

The husband petitioned for divorce after about seven months, but was diagnosed with dementia.  He failed to prosecute the case and it was dismissed. His daughter claimed he still wanted the divorce, while the wife alleged he changed his mind.

In 2007, the husband added the wife to his bank accounts with a right of survivorship and conveyed property to her.  She claimed he gave her “full authority” over his accounts and told her in Spanish, “all that I have is yours,” but his daughter alleged she took advantage of his incapacity.

His children applied for guardianship in September 2011.  A couple of weeks later, he executed a will naming his wife executor and leaving his estate to her.

After a temporary guardian was appointed, disputes between the guardian and the wife regarding the husband’s trust distributions and bank accounts led to the wife filing a lawsuit over the trust distributions and the banks filing an interpleader action.

The daughter argued the wife did not have standing in the guardianship proceeding because her interests were adverse to the husband’s and he was incapacitated. The guardianship court found he was completely incapacitated in 2011 and was not competent to execute the will.  The court dismissed the wife from the guardianship proceeding for lack of standing.

The guardian petitioned for divorce on behalf of the husband in October 2012 but ultimately nonsuited the claims.

The guardianship court appointed the temporary guardian as the permanent guardian of the husband’s estate and the daughter as permanent guardian of his person. The order specifically granted the guardian the right to file and prosecute a divorce proceeding on the husband’s behalf. The court subsequently granted the daughter the power to prosecute and defend the divorce action.

Third Divorce Proceeding

The guardian resigned in October 2016, and the court appointed the daughter as permanent guardian of the husband’s person and estate.

The daughter filed a third divorce proceeding. The court granted the daughter’s motions for   partial summary judgment and held the pre-marital and post-marital agreements were valid, no community property was created, and the husband’s separate property was not subject to be divided.

The wife appealed, but the husband died soon after.

The daughter applied to probate a 1996 will leaving all his assets to his children.  The wife filed to probate the 2011 will leaving his assets to her. The court rendered judgment in favor of the daughter and the wife appealed. The will-contest and guardianship appeals were abated pending resolution of the divorce appeal.

The daughter moved to dismiss the appeal in the divorce case as moot due to the husband’s death.  The appeals court dismissed the appeal, but affirmed the divorce decree.

Texas Supreme Court Review

The Texas Supreme Court granted the wife’s petition for review in the divorce cate.

The Court explained that when a spouse dies before the court has rendered judgment granting the divorce, the divorce becomes moot.  If the spouse dies after a valid divorce decree is rendered, however, the marriage is ended through the court’s decree. An appeal may be necessary to determine if the decree was valid and it is not moot if a spouse’s property rights may be significantly affected based on whether the marriage ended by death or divorce.

Appeal Not Moot

The wife argued the decree significantly affected her rights under the 2011 will. If the divorce decree was invalid, she would have standing to pursue a claim against the husband’s assets.

The daughter argued the wife was not entitled to receive anything under the 2011 will because it had been declared invalid.

The Court concluded, however, there was not a final, non-appealable judgment declaring the will invalid that was binding on the wife.  The wife’s claims in the will-contest proceeding were dismissed for lack of standing and her appeal was abated and still pending.

The appeals court affirmed the dismissal of the wife’s claims for lack of standing in the guardianship proceedings, so she was not a party and those orders were therefore not binding on her.

The wife still had a legal claim to the husband’s assets under the 2011 will that would be destroyed if the marriage ended by the divorce decree, so her appeal was not moot.

Divorce Filed by Guardian

The Court then considered whether a guardian may pursue a divorce on behalf of the ward under Texas law, considering case law and policy from other jurisdictions.

The daughter argued guardians are permitted to bring suit on a ward’s behalf without limitation under § 1151.101(a)(4).  The wife argued Tex. Fam. Code § 1151.104(a) only allows certain types of suits, which do not include divorces.

The Court noted the Family Code permits a court to grant annulment on a suit brought by a party’s guardian upon making certain findings, including that it is in the party’s best interest to be represented by the guardian.

The Court suggested the legislature clarify its policy decision on guardians’ ability to file divorce actions.  The Court declined to make a definitive decision on whether guardians may be authorized to pursue a divorce, but concluded if guardians may initiate suits for divorce under the Estates Code, there are two limitations.  First, Sections 1151.001 and 1151.351 of the Estates Code require a court order expressly authorizing the guardian to seek a divorce on behalf of the ward.  Under those statutes, an incapacitated person retains all legal rights and powers except as designated or limited by a court order and divorce is a “legal right” retained by the ward unless a court order specifically grants it to the guardian.

Additionally, any divorce pursued by a guardian on behalf of the ward must be in the ward’s best interest and promote and protect their well-being pursuant to Section 1001.001 of the Estates Code.  A guardian may only be granted authority “as necessary to promote and protect the well-being” of the ward.  TEX. EST. CODE § 1001.001(a). The Court held that, if a court can authorize a guardian to pursue a divorce, it must expressly find it is in the ward’s best interest for the guardian to have such authority.  However, the divorce court also must make the ultimate finding the divorce is in the ward’s best interest and will promote their well-being.

Because there was no express finding that the divorce was in the husband’s best interest and would promote his well-being, the Court vacated the divorce decree. Due to the husband’s death, the daughter could not show that the divorce would be in his best interest and promote his well-being.  The Court therefore dismissed the case without a definitive determination as to whether a guardian may be authorized to file pursue a divorce.

Contact Divorce Counsel

If you or your loved one have health concerns and are considering a high net worth divorce, it is important to contact a skilled Texas divorce attorney right away.  Acting quickly can help you protect your assets and your family before issues of incapacity arise.  Schedule a consultation with McClure Law Group at 214.692.8200.

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