Articles Posted in Fraud

In Texas, property division during a divorce is intended to be fair and equitable, though not necessarily equal. The court has the responsibility to decide what constitutes an equitable division of assets based on the evidence presented by both parties. It is important to note that in many cases, the parties may choose to settle their disputes through mediation, reaching an agreement on how to divide their property without needing the court to intervene. While mediated agreements are legally enforceable, they may not always be fair or equitable, particularly if one party lacks adequate legal representation or is pressured into agreeing to unfavorable terms.

Recently, the Texas Court of Appeals addressed a case where a man challenged a divorce settlement that had been finalized years earlier. In this case, the man and his spouse had been married for several years and owned a house together. During the marriage, the man signed a quitclaim deed, transferring his interest in the property to his spouse. When the couple decided to divorce, they entered into a mediated settlement agreement that included the division of their marital assets. According to the agreement, the house was listed as the spouse’s separate property, and the man agreed to this arrangement as part of the overall settlement.

The trial court subsequently signed an agreed final decree of divorce that confirmed the house as the spouse’s separate property. Both parties signed the decree, agreeing to its terms. Years later, the man filed a petition for a bill of review, seeking to overturn the prior agreement. He alleged that his spouse had fraudulently induced him to sign the quitclaim deed by presenting it as a document needed for mortgage purposes, without explaining that it would transfer his interest in the property to her. He further argued that he had relied on the advice of his counsel during the mediation, which led him to sign the agreement without fully understanding its implications.