Dallas Divorce Law Blog : Dallas Texas Divorce Lawyer & Attorney : O'Neil Attorneys Law Firm : TX Child Support & Custody Issues

I recently had a potential new client ask me how long they have to wait before the court can enter a divorce decree.  As a Dallas divorce attorney, I get this question a good bit.  Because of the frequency I receive this questions, I felt it would be a good idea to post the basis of Texas family law jurisdiction and the "waiting period" required before a court can enter a divorce decree.  

A suit for divorce must be filed in a county where the suit can be properly maintained.  Under the Texas Family Code, a suit for divorce is proper in the county where the parties have lived for the past 90 days.  In addition to the 90 day requirement, at least one of the parties has to have been a resident of Texas for the past 6 months.  Note that only one party to the divorce is required to meet the 6 month and 90 day residency requirements in order to bring a suit for divorce. 

Once the residency requirements are met, the next step is to file a suit for divorce in the appropriate county.  Once the suit is on file for at least 60 days, the court can enter a final decree of divorce. 

In sum, assuming the residency requirements are satisfied, the "quickest" someone can get a divorce in Texas is 60 days after they have filed their suit for divorce. 

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When spouses own a business and they are getting divorced, the value of the business becomes a major focus of the division of property.  Dallas Texas Board Certified Divorce Lawyer Michelle May O'Neil explains the concepts of valuation of a closely-held business entity that affect and even minimize the value of a closely-held business entity:

Valuing a business is a complex, and often expensive part of a divorce.  A business consists not only of tangible assets like buildings, bank accounts, inventory, tools, fixtures, furniture and machinery; but also, intangible ones such as mortgages, leases, patents, trademarks, unlisted stock, skilled labor, accounts receivable and most notably, “goodwill.” A business is valued usually based on the fictional assumption of a sale between a willing buyer and willing seller.

The most common legal concept that affects the value of a closely-held business is the distinction between the personal goodwill and commercial goodwill of the business.  The personal goodwill is that goodwill attributable to the person of the business owner.  Take a small bookkeeping firm, for example, owned by a wife.  Most of her clients do business with her company because they like her and trust her work.  her business has no reputation separate from her.  That value of the business attributable to her presence is personal goodwill.  The value of a business attributable to personal goodwill is the spouse's separate property.

Commercial goodwill, on the other hand, is that  goodwill that exists independent of the business owner.  It is the independent reputation of the ABC Company that exists separate from the business owner.  The value of a business attributable to the commercial goodwill is community property if the business would otherwise be community property.

Also diminishing the value of a business is the frequent occurance where a business remains subject to the control of multiple owners.  This discounts the value to any one of the owners for lack of control.

Another factor that decreases the value of a business involves marketability, which is defined as the ability to convert an investment into cash quickly at a known price and with minimal transaction costs. The more difficult a business would be to sell, the greater the discount for marketability.

Many businesses have "Buy/Sell Agreements".  These cannot be relied upon to calculate a business' value.  Such agreements typically protect the majority partner interests and rarely reflect actual value.

The best way to approach valuation of a business entity in a divorce is to hire an independent business appraiser—a CPA with an Accredited in Business Valuation (ABV) credential or a certified professional, like a Certified Business Appraiser (CBA) or someone recognized by the American Society of Appraisers (ASA).

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Divorce is a hard enough time but when you own your own business, managing your divorce and keeping your business alive can be extra challenging.  Here are some tips from Board Certified Dallas Family Lawyer Michelle May O'Neil of O'Neil Anderson:

• Be an open book.  Don't try to hide anything from your spouse.  When discovered, the divorce judge may very well impose greater punishment than the value hidden.
• Hire a good forenic accountant to evaluate the business.  If the business is community property, the value of the business to the community estate will be an essential question in the divorce.
• Know the difference in personal goodwill and commercial goodwill and how that difference may affect the consideration of your busines sin the division of your community estate and divorce.
• The declining economy may have removed much of the liquidity from your business, which may affect the cash available to pay the increased expenses of separating and paying divorce lawyers.
• If both spouses work in the business, it is best to pick one who will stay in the business and one who will exist.  Rarely can people who cannot stay married to each other remain business partners.

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Dallas Divorce Lawyer Michelle May O'Neil is presently featured with the nationally recognized Featured Legal Guide on www.avvo.com, a directory of lawyers across the country.  Her article on Valentine's Day Tips From A Dallas Texas Divorce Attorney discusses ways to keep a marriage together and avoid divorce, with tidbits from her 18 years experience as a divorce lawyer in the DFW metroplex area of Dallas, Texas.  The article is also featured in the Avvo Advocate electronic newsletter with legal advice for everday life.

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As Dallas Divorce Lawyer, I frequently am asked questions that touch on "legal separation" and its place in Texas family law.  Texas law does not recognize legal separation as a status, so in Texas, you're either married you are aren't.  The other day I had someone ask me whether she could marry someone who was legally separated from his spouse in another state.  To answer this question, we need to look at who can and cannot get married in Texas.

Under the Texas Family Code, same-sex couples, persons related to each other, and currently married persons cannot get married.  Under the question presented, the answer hinges on whether a person who is legally separated in another state is still consider "married" for purposes of Texas law.  Because Texas does not recognize legal separation as a status, then the person seeking marriage is still technically married to their "former" spouse in the jurisdiction they are legally separated in.  Therefore, the marriage cannot occur.

Under Texas law, a marriage is considered void and of no effect if either party to the marriage is currently married.  As a side bar, there is one small exception to this rule -- couples who are currently married to each other can obtain a marriage license.  In essence this exception allows couples to "legally" renew their wedding vows. 

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Many parents have long distances to bear between their children and themselves.  On Fridays and Sundays at the ariport, one can see many parents escorting kids to and from flights.  Airlines have regulations addressing flights for minor children flying without an adult -- called Unaccompanied Minors.  The regulations and fees charged vary between the airlines.  Here's a summary of the various airlines policies:

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How not to get divorced -- that type of advice is strange coming from a Dallas Divorce Lawyer.  But, really I'd love nothing more than to be out of business and into some other line of work, all because people stayed married.  Marriage is a great thing if you are with the right person.  Unfortunately, divorce is necessary in many circumstances.  But, I seriously doubt that anyone enters marriage with the idea that they want to get divorced.  So, for those out there trying to hold it together, here's some advice:

"February 15 is one of the busiest days in a divorce lawyer's calendar," says Dan Couvrette, CEO & Publisher of Divorce Magazine and www.DivorceMagazine.com. "Maybe some of these tips will help improve our readers' current relationships to the point where they're willing to try to work things out -- or perhaps the tips will help ensure that their future relationships will be happy and fulfilling."

1. Make time to connect lovingly with your spouse every day.

A couple can significantly improve their chances of marital success by devoting as little as 15 minutes a day exclusively to each other. For instance, choose to go to bed a little earlier and wake up a little earlier, and spend the extra time in bed cuddling, making love, and reaffirming your love for each other. Take time every day to have meaningful conversations with each other; to listen with the same intensity as when you were dating; to touch, hug, and show affection; to tell each other how you feel about your marriage; and to talk about your goals for the marriage and your lives.

2. Compliment your spouse regularly -- both in private and in front of others.

Even if your partner seems embarrassed or shrugs it off at first, the glow from sincere praise lasts a long time.

3. Love your spouse in the way he/she wants to be loved.
 

We often make the mistake of assuming that the things that touch our hearts the most deeply will affect our partner in the same way. For instance, you may think red roses are the perfect Valentine's Day gift, but to your spouse, they represent a waste of money and an allergy attack. If you don't already know, find out what your spouse yearns for, and then deliver it with love -- and no comments about how "stupid" it is to want a cordless drill/a picnic on the living room floor/a tuna casserole, etc. Remember: the best gift is something your spouse wants -- not merely something you want him/her to have.

4. Take care of your appearance.
 

Look your best for your spouse: he/she deserves it. Lose the ratty sweat pants or frayed sweater he/she hates so much; you can find other comfortable clothing that aren't a complete turn-off for your partner. This also means taking care of your health .

5. Remain faithful.

Dr. Finnegan Alford-Cooper studied 576 couples who had been married for 50 years or more; she released her findings in a book entitled For Keeps: Marriages that Last a Lifetime. In her study, she found that 95% of the spouses agreed that fidelity was essential to a successful marriage, and 94% agreed or strongly agreed that marriage is a long-term commitment to one person. And these "lifers" weren't making the best of a bad lot: a whopping 90% of the couples she surveyed said that they were happily married after 50+ years.

6. Do things together.

Another common factor of long-term happy marriages is that the spouses regularly do things together that they find fun and exciting. Whether that's ballroom dancing, bowling, playing cards, SCUBA diving, or skiing, participate in at least one activity that you both enjoy every week. If you have kids, make sure at least half of these activities are for you and your spouse only.

7. Spend time apart.
 

You take a pottery course while your spouse plays hockey; you play bridge and your partner collects stamps. You don't have to love everything your partner loves, but you do have to allow him/her the freedom to pursue cherished hobbies. An added bonus is that separate interests can generate interest between you.

8. Be friends with your partner.

According to John Gottman -- a psychology professor who claims his research will predict with 91% accuracy whether a couple will stay together -- the key to marital happiness and success is friendship. Some of the most important aspects of this type of friendship are knowing each other intimately, demonstrating affection and respect for each other on a daily basis, and genuinely enjoying each other's company. Gottman based his findings on 25 years of marital research, which he presented in his book The Seven Principles for Making Marriage Work.

9. The Terms of Endearment.

Top Los Angeles divorce attorney Stacy D. Phillips says flowers, candy, cards, and gifts are all wonderful tokens of love on Valentine's Day, but if you really want your romance to last, you must practice some marriage-saving steps. She advises couples to spell out the basics of their relationship in a yearly contract -- or at least to clarify them. "Most disputes that break up marriages are over sex and money," she says. "Don't let surprises lead to trouble. Marriage is like any other contract: its terms and conditions must be reviewed and updated. Right before an anniversary is a perfect time, and Valentine's Day reminds you to be flexible and that you have to give to receive."

10. Say "I love you" every day.

This is especially important when you're not feeling the sensation of love; at these times, you have to actively generate it. Saying those three little words, and performing loving gestures, will warm both your and your spouse's hearts.
 

Hat tip to Divorce Magazine for the idea for this article. 

This article is featured on avvo.com:  Valentine's Day Tips

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Dallas divorce attorney Michelle May O’Neil and her client prevailed yesterday, February 4, 2010, when the Fifth Court of Appeals issued its opinion in Kee v. Kee, Cause No. 05-08-00013-CV. The appeal in Kee arose from an ex-wife’s appeal of the trial court’s refusal to garnish ex-husband’s wages to satisfy his contractual alimony obligation.  The trial court in this case rightfully found the garnishment that ex-wife requested would violate ex-husband’s constitutional rights. The Dallas Court of Appeals agreed.

The Court of Appeal’s determination turned on whether the alimony payments wife sought to garnish from husband’s wages were ordered pursuant to Chapter 8 of the Texas Family Code, or whether such payments were contractual, as opposed to statutory, alimony. In reaching its decision, the Court of Appeals closely examined the language of the 2006 divorce decree’s alimony provision. The decree lacked the requisite findings for Chapter 8 maintenance; including a finding that wife was disabled and a stated duration of the maintenance obligation, with the specific language of the alimony provision providing in part:

“The Court finds that under the circumstances presented in this case, [Wife] is eligible for maintenance under the provisions of [the] Texas Family Code and the contractual agreement of the parties; and that this alimony obligation is contractual as well as statutory.”

Because the decree omitted the specific findings required by Chapter 8 of the Texas Family Code, the Court of Appeals determined that the “statutory” portion of the maintenance obligation could just as easily be Chapter 7 (the code’s provision for informal settlement agreements between parties) as Chapter 8 maintenance. As the alimony ordered by the 2006 decree was contractual rather than statutory under Chapter 8 of the Texas Family Code, the Court of Appeals determined that husband’s wages were not subject to garnishment, and, therefore the trial court ruled correctly.

The opinion in Kee extends the well-established case law prohibiting the enforcement of contractual alimony by contempt, including In re Green and McCollough v. McCollough, to prohibit enforcement of contractual alimony via garnishment of the obligor spouse’s wages absent a specific provision in the decree allowing for such a remedy. The moral of this case, for parties as well as family law attorneys, is be conscious of your drafting – if you intend for a maintenance obligation to be statutory under Chapter 8 of the Texas Family Code, make sure the decree includes the necessary findings. Also, if you intend for contractual alimony to be enforceable via garnishment of the obligor spouse’s wages, this must also be apparent from the terms of the decree.

Congratulations to Michelle May O’Neil on a notable appellate victory for her client.

For more information on alimony in Texas read our prior blog posts:

Alimony in Texas?!? Well, sort of . . .

Alimony in Texas?!? [Part 2 of 2]

To read articles written by Michelle May O'Neil on the topic of alimony/maintenance in Texas:

Comment: Alimony Versus Maintenance

Alimony/Maintenance Enforcement by Contempt
 

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As a Dallas divorce lawyer, one of the most frequently asked questions I receive is how can a client control the costs of his or her divorce.  Understandably, clients expect top notch service in a cost effective manner.  One of the more costly aspects of any divorce involves dividing up the community estate.  I recently came across a great blog post that offered some practical ways to help keep costs down in dividing the community estate.  Although the focus of the post dealt with dividing personal property contained in the home, a lot of the suggestions are applicable to dividing other parts of the community estate.  Here are the tips:

1.  One spouse makes two lists of the personal property.  The lists should contain property roughly of equal value and the spouse who didn't make the list gets to pick which list of property they want.  Because the spouse who didn't make the list gets to pick first, there is an incentive to make the lists as equal as possible --- otherwise the drafting spouse will get burned in the process. 

2.  Hold a silent auction.  This creative method allows the parties to ensure they get the property that they really want.  In the silent auction approach, each party blindly puts a dollar value next to a piece of property that is listed out on a sheet.  Since the parties don't know what dollar amount the other placed on the property, the process is pretty fair to all involved.  The spouse with the highest "offer" on a certain piece of property gets to keep it.  Once the auction is over, then the parties add up the total winning bids and divide the property accordingly.

3.  Arbitration.  Alternative dispute methods, such as arbitration, are frequently used in divorce cases.  Although there is a cost associated with using alternative dispute methods, couples can use an arbitrator to divide the community estate which is typically less expensive than presenting the matter to a judge.

4.  Rotating lists.  In this method, the parties simply make a master list of all their property and then take turns selecting one item at a time that they want to keep.  Spouses can simply flip a coin to see who gets to go first. 

Bottom line is that there are many creative ways to divide up property fairly, and in a cost effective manner.  Hat tip to the Minnesota Divorce and Family Law Blog for the idea behind this post.

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A Dallas Divorce client raised an important question this week.  She owns a small professional practice that is an S-corporation.  Her business has some cash flow that allows her to pay the business expenses and payroll, but not much extra.  Her husband requested the Dallas Divorce Judge to make the wife turn over the cash she presently had in her business to help pay the husband's marital debts.

In a Texas divorce, a judge may only award shares of corporate stock in a divorce, and may not invade the corporate assets. Moreover, a judge may not divest a spouse of separate property corporate stock and award it to the other spouse. Retained earnings (cash) of a company are a corporate asset and are not marital property, either separate or community. The fact that the corporation is a Subchapter S corporation does not determine who owns the corporation’s earnings. A corporation may, in its discretion, distribute its income to its shareholders, but it is not required to do so. Further, it cannot be compelled to do so by a divorce court that lacks jurisdiction over the corporate entity. The shareholder in a Subchapter S Corporation has no greater rights over corporate property than a shareholder in any other corporation.

See  McKnight v. Mcknight, 543 S.W.2d 863 (Tex. 1976); Thomas v. Thomas, 738 S.W.2d 342, 343 (Tex. App. – Houston [1st Dist.] 1987, writ denied).

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