Divorce

Business Was Not Required to Be Served in Action to Enforce Texas Property Division

Published on: December 15, 2025 | by Kelly McClure

Pursuant to Chapter 9 of the Texas Family Code, a party may file suit to enforce the property division in a divorce decree. If a party’s “rights, duties, powers, or liabilities may be affected” by the enforcement action, they must receive notice by citation. Tex. Fam. Code § 9.001.

A former husband recently challenged court orders resulting from the ex-wife’s enforcement action. The former wife petitioned for enforcement and applied for a turnover order and appointment of a receiver. She alleged she had learned that certain property on Highway 105 owned by a limited liability company was to be sold and was concerned she would not get the share of the net proceeds that had been awarded to her. She asked the court to appoint a receiver to obtain possession of the ex-husband’s property to satisfy the $5,000 judgment for attorney’s fees and to hold the property pending orders of the court distributing the limited liability company ownership or the ex-husbands ownership of any other limited liability company. She also requested a turnover order and related attorney’s fees.

The ex-husband moved for a continuance the day of the hearing. His attorney argued he was served less than ten days before the hearing and the company had not been served. He argued he was not served with a citation for the business and judgment could not be entered without service on the company. He also argued the ex-wife had filed a lis pendens against the company and that the company needed to be served to make an appearance.

Texas Appeals Court Affirms 70/30 Property Division

Published on: December 9, 2025 | by Francesca Blackard

The community estate must be divided in a “just and right” manner in a Texas divorce, but that does not always mean an equal division. In a recent case, a former husband challenged a property division that awarded the wife about 70% of the community estate, along with a money judgment of $365,000.

The parties got married in 1998 and stopped living together in 2021. The husband petitioned for divorce in 2022, alleging insupportability and requesting a disproportionate share of the community estate. The wife also alleged insupportability and adultery by the husband. She also alleged the husband committed fraud on the community estate and requested a disproportionate share of the estate.

The trial court awarded the wife about 70% and the husband about 30% of the community estate.

Texas Court Improperly Granted Summary Judgment that Separate Property Was Converted to Community Property

Published on: November 27, 2025 | by Francesca Blackard

Characterization of property can be a significant issue in a Texas divorce. The Texas Family Code includes a presumption that property owned by a spouse at the time of divorce is community property, but this presumption can be overcome by clear and convincing evidence the property is the spouse’s separate property. Separate property includes property owned by a spouse before the marriage and property inherited during the marriage. In a recent case, a former husband challenged the trial court’s award of certain property to the wife after declaring it had become community property.

The husband owned certain real property before the parties married in July 2020. The wife filed for divorce in December 2021. The wife conceded that property had been the husband’s separate property. In March, 2021, the husband signed a general warranty deed. That deed listed husband, “a single man,” as the grantor and husband, “a married man,” as the grantee, with consideration of 10.00 “and other good and valuable consideration.”

The wife asked the court to grant a partial summary judgment determining the property was converted to community property. She submitted a copy of the deed and an affidavit from her attorney as summary judgment evidence.

Texas Appeals Court Reverses Property Division in High Net Worth Divorce Involving Allegations of Fraud

Published on: November 22, 2025 | by Kelly McClure

High net worth divorces and business divorces can often be contentious. In some cases, spouses may allege fraud or other improper actions by the other spouse. There is a presumption of fraud when a spouse disposes of the other’s one-half interest in a community asset without their consent or knowledge. Cantu v. Cantu. The presumption shifts the burden to the spouse who disposed of the property to show that the transaction was fair. Key v. Key. In a recent case, a former wife appealed issues related to alleged fraud and the property division.

The parties operated a jewelry business during their marriage. The wife petitioned for divorce in January 2019. The parties agreed that the fraud and reconstitution of the community estate issues would go the jury and the property division would be tried by the bench. The jury found that both parties committed fraud on the community. The jury was asked to evaluate the fairness of certain transactions from the wife to her mother and found that the wife unfairly depleted the community estate by $1,269,720.35.

The court determined the reconstituted estate had over $4.5 million in assets and over $470,000 in debts. The court allocated 50.51% of the assets to the wife and 49.49% to the husband. More than half of the assets allocated to the wife was the value of her unfair transactions as determined by the jury. The assets allocated to the husband included properties valued at about $1.9 million and the jewelry business. The court also allocated 70.36% of the debts to the wife. The court also ordered the wife to pay the husband a $131,710 equalization payment. Ultimately, the husband received 55% of the reconstituted estate and the wife 45%.

Wife Granted Portion of Proceeds of Husband’s Separate Property House Purchased Prior to Marriage

Published on: November 9, 2025 | by Kelly McClure

In Texas, property acquired by either spouse during the marriage is presumed to be community property. However, property acquired prior to marriage is not community property. In a recent case, the parties disputed the ownership of a piece of property they bought before marriage.

Before the parties married, they bought a property in Floresville with both names listed as “Grantee” on the warranty deed.

The wife petitioned for divorce in August 2023. She testified that the property was purchased with money from their joint account. She said that proceeds from the sale of a property owned by the husband were in the joint account but said they had both contributed funds to the joint account.

Texas Appeals Court Affirms Divorce Decree Awarding Wife Property Conveyed to Her by Husband

Published on: October 29, 2025 | by Francesca Blackard

Spouses sometimes convey property to each other during the marriage for various reasons. In some cases, those conveyances may become an issue if the couple divorces. In a recent case, a former husband challenged the property division awarding the former wife two pieces of property, even though he had executed deeds conveying those properties to her.

The wife petitioned for divorce in June 2021 after more than 14 years of marriage. She identified a home and a separate plot of land as her separate property. She presented copies of a Special Gift Warranty deed by which the husband’s parents gifted the home to him, a later General Warranty deed by which the husband conveyed the home to the wife, a General Warranty Deed conveying the land to the husband, and a subsequent General Warranty deed conveying the land from the husband to the wife. She identified both properties as her separate property in her Initial Disclosures. The husband did not identify those properties as property he currently owned, separate property, or property against which he had a claim in his discovery responses.

The wife moved for partial summary judgment, asking the court to hold that both properties were her separate properties. She alleged the husband received the home as a gift from his parents, and then conveyed it to her as her separate property. She alleged he bought the land during the marriage and signed a General Warranty Deed conveying it to her in 2020. She argued he conveyed his undivided one-half community interest in the land to her, raising the gift presumption.

Texas Reversal of Temporary Injunction Enjoining Ex-Wife From Filing Lawsuits Related to the Parties’ Company

Published on: October 29, 2025 | by Kelly McClure

The division of a business in a Texas divorce can result in ongoing disputes, even after the divorce is finalized. This can be especially true when one party has control of the business while both parties maintain an ownership interest. A former wife recently appealed a temporary injunction enjoining her from filing lawsuits against the Company and other parties.

The parties divorced in 2019. They owned a corporation and other related entities together, collectively referred to by the appeals court as the “Company.” The divorce decree ordered the sale of the Company, and appointed a separate entity to do the sale.

The ex-wife appealed the property division in the divorce decree, and the appeals court affirmed. She also appealed a take-nothing judgment against her in a lawsuit in which she alleged the ex-husband had engaged in fraud and breach of fiduciary duty. That appeal was still pending at the time of the appeals court’s decision in this matter.

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.

Texas Appeals Court Affirms Characterization of Parental Gift as Separate Property

Published on: October 15, 2025 | by Kelly McClure

The court in a Texas divorce case must divide the estate in a “just and right” manner. Property acquired by either spouse during the marriage, except separate property, is community property. Tex. Fam. Code § 3.002. Separate property includes property acquired by a spouse by gift. Tex. Fam. Code § 3.001. There is a rebuttable gift presumption for property conveyed by a parent to a child. The presumption can be rebutted by clear and convincing evidence that the parent lacked donative intent. A former husband recently challenged characterization of certain property the wife claimed had been gifted to her, as well as a provision stating the wife was entitled to file taxes as head of household, and a number of other issues.

The wife bought a new home in July 1999. She and her father were listed as the grantees on the deed, but the husband put $25,000 down. The parties got married that September and lived in the home. The wife’s father’s interest in the home was transferred to the husband in October 2000.

The husband worked as an engineer when they married but was laid off in 2007. At the time of the trial, he had not had full-time employment since that lay-off. He had received a severance and used it for bills and living expenses until it was depleted. The husband cared for the parties’ young child while the wife worked full time.

Texas Appeals Court Dismisses Appeal of Order Requiring Ex-Husband to Pay $100,000

Published on: October 8, 2025 | by Francesca Blackard

While ideally, parties to a Texas divorce can resolve matters amicably, some high net worth divorces can lead to years of ongoing litigation. In a recent case, a former husband appealed an order requiring him to pay the former wife $100,000. This appeal was the third appeal arising from the parties’ 2019 divorce.

Both parties had challenged the property division in the original divorce decree. In the first appeal, the appeals court concluded the trial court had mischaracterized certain property, with a difference of more than $1 million to the ex-wife. The appeals court therefore concluded that a mischaracterization of that amount affected the just and right division of the community estate and remanded for a new property division.

The ex-husband appealed the second decree, arguing that there should have been a new trial on remand because several of the properties had changed form since the original decree or no longer existed. He argued the trial court erred when it refused to consider evidence of changes in the property after the divorce. The appeals court rejected this argument, noting that the community assets are generally valued as of the date of the divorce. The trial court could have reasonably determined that the changes could later be addressed in an enforcement proceeding. The appeals court affirmed the 2023 decree.