Third Party in Divorce Case: Role and Impact

In our previous blog post from the Law Office of Bryan Fagan, we introduced the pivotal concepts of fraud, waste, and community property division in the context of divorce. These topics hold significant weight and can profoundly influence the outcome of your divorce proceedings. If you haven’t had the chance to review our previous materials, we encourage you to do so, as they serve as a solid foundation for today’s discussion. Today, we delve deeper into the issue of fraud and waste within the community estate and explore the possibility of involving a third party in a divorce case.

In some cases, the reason why fraud and waste occurred in your finances is that your spouse had an affair and used community property money to buy gifts, vacations, or other items for their paramour. Not only is it hurtful to you on an emotional level, but it hurts you financially as well. You work hard and save money consistently, only to find that your spouse is siphoning off money for another person. Ultimately, what options do you have to pursue a case against the “other” woman?

A note about how constructive fraud impacts the division of the community estate

If you allege that a significant sum of money has vanished from your bank account or possess evidence indicating that your spouse spent thousands of dollars on jewelry for a third party in the divorce case, you should aim to have that amount awarded to you during settlement negotiations. This ensures you receive assets that still exist and compensates for money or property no longer available due to your spouse’s fraudulent actions.

In actuality, what you are doing is pretending that your spouse still has the money somewhere when they have spent it or otherwise disposed of it. You will get more in the final division of your community estate, and he will get less. After all, he was greedy and had taken advantage of the situation already. It’s like when you were a little kid and took cookies from the cookie jar before your mom permitted you. Later, when it was time to have a couple after dinner, your mom would give the remaining cookies to your siblings, and you would get none.

Third party tort claims and Texas divorces

Now that we’ve concluded yesterday’s blog post, let’s dive into the topics I wanted to address today. In Texas, you are not legally able to file a lawsuit against your spouse as a separate tort claim in conjunction with a divorce. However, you can add your spouse’s girlfriend as a defendant to the case and make an allegation against her based on fraud. That person has essentially stolen your community property, and the state of Texas allows you to recover the property.

Look for the following circumstances to be in place if you want to file suit against your husband’s girlfriend for conspiracy. First, the girlfriend and your spouse must have decided together to take an unlawful action that caused an injury to you from a financial perspective. For instance, tricking you into making payments on a piece of property already owned by the girlfriend and then your spouse pocketing the money paid for this land could be an example of a conspiracy.

Conversely, if you wish to assert that the third-party individual perpetrated fraud against you, you must demonstrate that they made a false representation and knew it to be untrue. Furthermore, you must show that the third party in this divorce case made this statement to you to act in some way based on learning that information. An injury to you must have resulted from that action taken.

Consider this hypothetical situation concerning your community estate

Try this situation on for size. What if your spouse owns a separate property company. That company owns several restaurants here in the Houston area, and during your marriage, he used that business to start a new bar. The issue in conjunction with your divorce is that your spouse could have used community funds to open up the bar. Doing so would have caused the bar to be community property and thus would have allowed you a share of it in the divorce.

One could argue that your spouse breached their fiduciary duty to you by engaging in such actions. A fiduciary is someone entrusted with a relationship, whether personal or professional, who must prioritize your best interests above their own and set aside their self-interests. Is an argument likely to be successful if you choose to implement it in your divorce case?

In court, you could argue that there exists a fundamental duty of trust within the fiduciary relationship between spouses. By diverting community funds for personal gain, one spouse is betraying this trust and placing their interests above those of their partner. This violates the principles of trust, loyalty, and fiduciary responsibility.

Just as a company president’s self-serving actions can harm the company, a spouse’s actions can detrimentally affect the community estate. At the very least, one could argue that the spouse ought to inform the other about opportunities to benefit the community estate, enabling informed decision-making. Though this argument may not frequently arise in court, it encourages reflection on how spouses essentially operate as presidents of a company within their marriage and community estate.

Spousal maintenance and fraud

If your spouse committed fraud against you involving a third party in the divorce case, then a trial court can consider this as having occurred when determining how much post-divorce spousal maintenance to award to you. When a judge determines that you are eligible for spousal maintenance, they must proceed to determine the specific amount of money you should receive, the duration of payments, and any other pertinent details required to finalize the spousal maintenance award.

Suppose your spouse engaged in fraud, waste, or any other acts that saw the value of your community estate significantly decrease. In such instances, the judge can consider this information when deciding the final amount of spousal maintenance to award. Suppose your spouse wasted community resources by spending it on their paramour. In that case, you should be able to receive an increased amount in spousal maintenance based on whatever circumstances are relevant to your case.

What happens with the community and separate property in a divorce?

The discussion above is relevant to your case only in how it affects or defines the division of property between you and your spouse in the divorce. If it doesn’t impact the dollars and cents of your family law case, then our entire discussion was all for naught. Unless you have a premarital or marital property agreement in place, the first time anyone attempts to divide up your community estate will be in the divorce.

Having explored the interaction of fraud, waste, and the community estate in your divorce, let’s delve deeper into how property is classified within divorce proceedings. Specifically, how do we determine whether a piece of property is deemed separate or community-owned? While we briefly introduced this topic earlier, let’s now dive into it with more detail.

When you purchase a piece of property, its classification as separate or community property typically becomes set and stays the same. For instance, if you buy real estate before marriage, the crucial date for determining its ownership status is when the purchase funds exchange hands, not when the property closes or when you move in. Additionally, if you and your spouse construct a house on separate property land during marriage, the resulting house would likely retain its separate property status. As previously mentioned, it’s important to consider that there may be reimbursable costs linked to the acquisition and maintenance of the home.

It is presumed that all property acquired during your marriage is considered to be community property.

At the time of your divorce being filed, your attorney will ask you to fill out an inventory of all of the property that you own, along with an appraisement that asks you to estimate the value of those pieces of property. Pay from your employers, income from separate property, and other sources would count as individual property.

Debt is also a relevant topic when describing community property. During your marriage, creditors typically presume any debt or loan incurred to be community debt unless they explicitly agree to consider only one of your separate properties for repayment. However, such agreements are rare, and if they occur, ensure they are clearly stated in the financing agreement and payment plan language of any contract you sign.

What is separate property?

Separate property encompasses property claimed by you or your spouse before marriage, acquired during the marriage through gift or inheritance, or resulting from a settlement or judgment related to a personal injury claim. Additionally, if you can show that you purchased an item with a separate property during your marriage, then that piece of property is your particular property.

The next logical question to ask yourself is what kind of evidence you need to provide to a judge to prove that a piece of property is your separate rather than community property. You can use testimony, documents, statements in discovery responses, and expert witness testimony to support your argument that a piece of property is your separate property.

The inventory that we spoke about a moment ago that you will fill out at the beginning of your divorce may be all that you need to prove that an item is your separate property. However, if the inventory lists a piece of property as belonging to both you and your spouse, then additional evidence must be provided.

Conclusion

Navigating the complexities of divorce entails a thorough understanding of various legal aspects, including fraud, waste, and community property division. As highlighted in our discussions, these elements play a crucial role in shaping the outcome of divorce proceedings. Moreover, exploring the potential involvement of a third party in a divorce case adds another layer of complexity and consideration. By staying informed and seeking the guidance of experienced legal professionals like those at the Law Office of Bryan Fagan, individuals can better navigate these challenges and strive for fair resolutions in their divorce proceedings.

More on community and separate property will be posted in tomorrow’s blog post.

If you are interested in the material that we covered in today’s blog post, please do not hesitate to contact the Law Office of Bryan Fagan. Our licensed family law attorneys are available six days a week to meet with you and answer your questions. If you have never heard the perspective of a licensed family law attorney regarding your case, now is the time to give us a call.

We understand that you have a lot of options as far as hiring a family law attorney. However, I propose today that the lawyers at the Law Office of Bryan Fagan provide a blend of professionalism, experience, and results that are unparalleled in our city. Contact us today to learn more about us and how we can help your family.

Bryan Joseph Fagan( Attorney )

Bryan Fagan, a native of Atascocita, Texas, is a dedicated family law attorney inspired by John Grisham’s “The Pelican Brief.” He is the first lawyer in his family, which includes two adopted brothers. Bryan’s commitment to family is personal and professional; he cared for his grandmother with Alzheimer’s while completing his degree and attended the South Texas College of Law at night.

Married with three children, Bryan’s personal experiences enrich his understanding of family dynamics, which is central to his legal practice. He specializes in family law, offering innovative and efficient legal services. A certified member of the College of the State Bar of Texas, Bryan is part of an elite group of legal professionals committed to ongoing education and high-level expertise.

His legal practice covers divorce, custody disputes, property disputes, adoption, paternity, and mediation. Bryan is also experienced in drafting marital property agreements. He leads a team dedicated to complex family law cases and protecting families from false CPS allegations.

Based in Houston, Bryan is active in the Houston Family Law Sector of the Houston Bar Association and various family law groups in Texas. His deep understanding of family values and his professional dedication make him a compassionate advocate for families navigating Texas family law.

What Sort of Third Party Claims Can Be Brought in Texas Divorce Cases?

A note about how constructive fraud impacts the division of the community estate

Third party tort claims and Texas divorces