Divorce

Texas Appeals Court Finds Property Was Separate Despite Use of Community Funds

Published on: April 25, 2021 | by Kelly McClure

images In a Texas divorce case, property acquired during the marriage is presumed to be community property. A spouse claiming property is their separate property must show that it is separate by clear and convincing evidence. Separate property is generally property that is owned before the marriage, property that the spouse acquired as a gift or inheritance, or property recovered as damages in a personal injury case. Community property is generally property acquired after the marriage that is not characterized as separate property.

In a recent case, a wife challenged the court’s characterization of certain property as the husband’s separate property. The wife filed for divorce. The parties agreed they had married in India in 1976, but disagreed on the date they stopped living together as husband and wife.

Husband and Wife Enter into Settlement – But Leave One Issue for Trial

The case went to trial, but, before trial, the parties entered into a Mediated Settlement Agreement (“MSA”). In the MSA, the parties agreed their community property located in India would be divided by Indian courts. The parties agreed to the characterization and division of everything except two pieces of land in India, referred to as the “Fifteen-Cent” property and the “One-and-a-half-Acres” property. The MSA stated they would “defer to characterization and confirmation of separate property” of those two parcels to the trial court.

Arbitration Provisions in Texas Premarital Agreements

Published on: April 18, 2021 | by Francesca Blackard

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Some Texas premarital agreements may include a binding arbitration clause. A party may compel arbitration when the claims at issue are within the scope of a valid and enforceable agreement to arbitrate. If the claim falls within the agreement’s scope and there is no defense to enforcing it, the court must compel arbitration. Fraud may be a defense against compelled arbitration, but the party must show that the fraud was specifically related to the arbitration provision.

A husband recently appealed a denial of his motion for arbitration in his divorce proceeding. The parties signed a premarital agreement that included an arbitration clause. The wife filed a petition for divorce in July 2014. In 2016, she filed an amended petition. Neither petition mentioned the premarital agreement. The husband filed an answer in 2016, but did not mention the premarital agreement either.

In a second amended petition, the wife stated there was a premarital agreement and requested it be set aside and vacated. She alleged she entered into it involuntarily and that it was unconscionable.

Equitable Property Distribution in Texas Divorce

Published on: April 11, 2021 | by McClure Law Group

does-adultery-affect-alimony-in-idaho-1080x600-1 In 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.

Default Judgment in a Texas Divorce Case

Published on: March 22, 2021 | by McClure Law Group

When a spouse petitions for a Texas divorce, the other spouse must file an answer. If the other spouse fails to do so, the court may render a default judgment. Under certain circumstances, however, the other spouse may get the default judgment overturned. In a recent case, a husband sought to overturn a default judgment entered against him.

According to the Texas Supreme Court’s opinion, the wife filed for divorce. The trial court granted her motion for alternative service at the home of her husband’s mother. The trial court ultimately entered a no-answer default judgment the following January.

Supreme Court of Texas Discovery Rules

Published on: March 8, 2021 | by Brandon Joseph

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On December 23, 2020, the Texas Supreme Court finalized its amendments to the discovery rules set forth in the Texas Rules of Civil Procedure. The changes to the discovery rules will undoubtedly impact family law cases filed on or after January 1, 2021.

Of the amendments, the mandate that certain pretrial, expert, and initial disclosures be made under Rules 194 and 195, will require the compilation and exchange of documents and information early in the litigation phase and without the necessity of a formal request from the opposing party. While this early exchange of information may lead to resolution and settlement of issues and claims, failure to respond in accordance with the Rules may result in exclusion of evidence as set forth in Texas Rule of Civil Procedure 193.6.

In order to preserve your claims and ability to present evidence, it is imperative that you comply with the amendments to the Texas Rules of Civil Procedure. For convenience, please find the amended discovery rules below.

Property Division in Texas Default Divorce Judgment

Published on: March 7, 2021 | by Francesca Blackard

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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.

Texas Divorce Decree Must Adopt Terms of a Mediated Settlement Agreement

Published on: February 23, 2021 | by Kelly McClure

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.

Evidence of Adultery and Drug Use in a Texas Custody Case

Published on: February 14, 2021 | by McClure Law Group

Evidence is important in any case, including a Texas child-custody dispute. In a recent case, a father challenged a trial court’s divorce decree based on the exclusion of certain evidence at trial. iStock-818445486

Is My Spouse Entitled to Half of My 401(k)?

Published on: January 24, 2021 | by Spencer Page

iStock-654702696 For 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 ›

Arbitration Award Involving Texas Couple’s Business Entities Upheld on Appeal

Published on: January 20, 2021 | by Kelly McClure

iStock-1215119911 A 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.