Articles Posted in Divorce

Going through a Texas divorce is a difficult process. Going through a divorce alone, however, without a qualified family law attorney to represent you, can feel insurmountable.

A recent court opinion demonstrates this principle in action. The opinion is an appeal from a divorce decree, a document that makes a divorce legally effective and explains how a couple’s assets and debts will be divided. From the time of filing for divorce, it took this couple five years to obtain the court order that made the divorce legally effective. That meant five years of court filings, appearances, and notices, as well as five years of untold personal anguish for the husband and wife.

Still, the troubles did not end there. The husband, who was not represented by a lawyer at the time the divorce decree was signed, made an appeal. The husband urged the court to put aside the divorce decree, which weighed heavily in favor of the wife. His argument for setting aside the decree was that he did not know about the final hearing, that there was insufficient evidence put forth at that hearing, and that there were obvious errors in the decree that could not stand.

When a couple gets divorced, there are many logistical aspects that need to be handled. For some couples, this may include separating the combined assets and determining custody of the children. And when one, or both, of the spouses has debts at the time of the divorce, this can affect the decision-making process as well. In a recent Texas appellate case, the court was tasked with deciding whether the previous judge misappropriated debt to the husband, affecting the division of the community property of the couple. Ultimately, the court decided that the division of assets was appropriate, regardless of the husband’s argument.

In this case, the couple got married in 2008 and separated in 2018. After a trial, the court awarded the wife one of the couple’s cars, 50% in any joint bank account, 50% community interest in a retirement savings account, and any bank accounts and possessions in her name. She was also ordered to pay all of the debts incurred from her credit cards, along with 50% of her student loan debt. The husband was awarded a different vehicle, 50% in joint bank accounts, 50% community interest in a retirement savings accounts, and bank accounts and possessions in his name. He was also ordered to pay 50% of the debt owed on the student loan account.

On appeal, the husband argued that the court mischaracterized the student loan debt as partially attributable to him. Like assets, debt can be divided amongst the parties during a divorce. Ultimately, the court disagreed with the husband’s argument and ruled the trial court did not abuse its discretion in the way it divided the assets—including debt.

A Texas appeals court recently considered a Texas divorce case in which the trial court had unequally divided the parties’ pensions. In that case, the trial court had granted the divorce and divided the community property. In dividing the community property, the trial court awarded each of the parties 100% of their pensions. The husband appealed, arguing that the trial court abused its discretion in dividing the parties’ retirement accounts by awarding the wife 100% of her FERS pension because her pension was more valuable than the husband’s. The husband argued that as a result, the wife was awarded a disproportionate portion of the community estate. The husband argued the division was unfair because it created an overall division of the estate of 62% to the wife and 38% to the husband.

Division of Community Property Under Texas Law

Under the Texas Family Code, a trial court must divide the estate of a married couple in a way “that the court deems just and right.” However, a trial court does not need to divide a community estate equally. An estate may be divided unequally as long as there is a reasonable basis to do so. A court can consider a number of factors, including the difference in the parties’ incomes and earning capacities, the nature of the property, the parties’ physical condition, the parties’ financial obligations, fault in the dissolution of the marriage, their ages, their business opportunities, the size of their separate estates, and their need for future support.

In the U.S., states can follow one of two methods of distributing property during a divorce; equitable division or community property. Texas is one of nine jurisdictions that follows the community property doctrine. Under this theory, the law presumes that all of the property a couple acquired during the marriage equally belongs to both spouses. Spouses who wish to assert separate ownership over a piece of property must prove sole ownership.

Under Texas Family Code Ann. § 3.0001, separate property is anything one spouse owned before marriage. Further, separate property includes certain property a spouse acquired during the marriage. For example, separate property may include:

• An inheritance one spouse received.
• Property gifted from the husband or wife.
• Compensation for personal injuries.

However, it is essential to note that courts do not consider personal injury damages related to earning capacity loss as separate property. A party contesting community property presumption over an item must prove ownership by a preponderance of the evidence.

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