Over the course of a long marriage, a husband and wife may enter into certain agreements that divide their estate and property unequally. This contrasts with Texas’s community property status, which means that property acquired during a marriage belongs equally to both spouses. Because of this, agreements otherwise have to meet certain statutory criteria. A skilled family law attorney can help you navigate these criteria and avoid any nasty surprises in the unfortunate event of divorce. An example of this is highlighted in a recent opinion issued by a Texas court.
Facts of the Case
The now-divorced parties to the case were married in 1994 and had one child. One spouse—the wife— was the primary breadwinner. Before separation, the parties executed a marital property agreement that converted some joint property, including bank accounts, retirement accounts, and life insurance policies, to the wife’s separate property. The agreement included provisions, including a full “warning” page, that stated the parties understood they had the opportunity to have independent attorneys review the agreement and that they could be surrendering otherwise available claims to the property. Both parties signed that page and separate waivers. The parties also established a revocable trust that stated property in the trust would remain as either separate or jointly owned property.
The parties separated in 2016 and attempted to execute a settlement agreement to be later incorporated into their final divorce agreement. Later, the wife claimed she revoked her consent to that agreement. The trial court found that the previously established trust granted the wife ownership of an account, but the settlement agreement granted the husband ownership of that same account. The court held that the trust governed and the wife owned the account. A later proceeding ordered that the wife’s property was established as set forth in the marital property agreement pre-separation.