High-net-worth divorces often involve inherited wealth, family gifts, investment accounts, and closely held business interests that one spouse believes should remain separate property. Under Texas law, however, having witnesses assert that an asset is separate property is not enough.
A recent decision from the Texas Third Court of Appeals demonstrates how that burden is applied in practice. In O’Connor v. O’Connor, the court examined whether testimony from multiple family members could establish that mineral interests acquired during the marriage were purchased with the husband’s separate property.
Ultimately, the court concluded that the evidence did not satisfy Texas tracing requirements because the financial documentation left critical gaps. (O’Connor v. O’Connor, No. 03-23-00407-CV, 2025 WL ___ (Tex. App.—Austin July 30, 2025).
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