Failure to Pay Debt Ordered in Texas Divorce Is Not Enforceable by Contempt

Courts are required to effect a just and right division of the community estate in a Texas divorce.  This division is not limited to assets, but in many cases, the court must also apportion the parties’ debts.  A former husband recently challenged a provision in his divorce decree making his failure to make loan payments enforceable by contempt.

The husband asked the court to divide the estate in a manner it deemed just and right.  The wife indicated she believed they would enter into an agreement for the property division, and, if so, the court to approve the agreement and divide the estate accordingly.  Alternatively, she requested a just and right division.

The parties were not able to reach an agreement.  They had a trial before the associate court.  The husband asked the trial court for a de novo trial.  Following the new trial, the trial court notified the parties it agreed with the property division by the associate trial court. The husband objected to a provision making his failure to make required payments on a loan from the wife’s retirement account punishable by contempt.  He argued the provision violated article I, section 18 of the Texas Constitution.  The trial court ordered the language related to contempt be stricken, but ultimately signed the final divorce decree with that language included.

The husband ultimately appealed.

Ripeness

The wife argued the husband’s constitutional claim was not ripe for review because the husband had not been held in contempt.  The trial court rejected this argument, noting it had the authority to interpret and modify judgments.

Constitutionality

Generally, if a person willfully disobeys a valid court order, the court may hold them in contempt and imprison them for a specific period or until they comply with the order. Article I, section 18 of the Texas Constitution provides that a person shall not “be imprisoned for debt.”

If the trial court awards certain property in its division of the community estate, it may enforce delivery or payment through contempt. Texas courts have held that the person ordered to pay is a “constructive trustee” of the assets.  If the court did not identify how the payment will be funded or specify that there are existing funds to pay the debt, it cannot enforce it through contempt or confinement.

The court in this case did not identify the source for funding the payments or specify that there were funds to make the payments.  The appeals court therefore held that the contempt provision violated article I, section 18 of the Texas Constitution.

The appeals court modified the final decree to delete the contempt language, such that the requirement to pay the debt could be enforced “by all remedies available at law and equity except imprisonment for contempt.”  The appeals court otherwise affirmed the modification.

Contact McClure Law Group

If you are considering divorce with significant debts, a skilled Texas divorce attorney can advise you of your rights and options and help you pursue a favorable outcome under the law.  Call 214.692.8200 to schedule a conference to discuss your case.

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