More and more people make use of student loans to help pay for their education. As recently as 2009 almost 60% of Texas students graduated college with student loan debt. If you add on graduate school student loan debt can easily exceed $100,000. If your soon to be ex-spouse has student loans with a significant balance you may be very concerned about how the student loan debt can be allocated as part of a Woodlands Divorce. With the great amount of discretion given to judges, you are right to be concerned. Fortunately, a recent case sheds some light on how the courts are examining student loan debt and divorce.

Background

Albert and Sophia began living together in 1987. One year later, Sophia gave birth to their only child. To help cover living expenses, Sophia’s educational expenses, and the expenses of Albert’s asbestos consulting business, Sophia applied for and received student loans totaling over $90,000. In February 1994, Albert and Sophia married, and in 2002, Sophia filed a petition for divorce.

The Trial

In a surprise ruling, the trial court ordered Read more…

Wasting community property is one valid reason a judge may order a disproportionate division of community property in a Montgomery County Divorce. A common example of wasting community property in a divorce would be if one spouse makes substantial gifts to a new girlfriend, boyfriend, or anyone outside the marriage using community property. If you take money or property that is community property and transfer it outside of the community estate then you may have a “waste” situation which opens the door for a disproportionate division of community property. One court recently ruled that a husband who used community property while the divorce was pending to purchase a new home and car for himself was guilty of waste. The appeals court disagreed. Let’s see why.

Background

Wife and husband married in 1990. In 2006, wife and children fled the family home alleging family violence by husband. The couple filed for divorce in 2007. During divorce proceedings, husband sold community property and used those assets to pay community debts and to purchase a home and an automobile for his personal use. Following trial, trial court awarded wife a disproportionate share of the community estate due to husband’s “wasting of community assets” in violation of a court order.

Husband appealed on multiple grounds including that trial court abused its discretion in finding that he wasted community assets and making a disproportionate property division and money damages award based on that finding.

Waste and Community Property Division

Under the family code, a trial court in a divorce proceeding is charged with ordering a division of the community estate in a manner that the court deems “just and right,” having due regard for the rights of each. In dividing the community estate, the trial court can consider several nonexclusive factors including whether one party wastes community property. Waste occurs when Read more…

Many people believe property is divided in half as a result of divorce. It certainly sounds reasonable on many levels. Equal division of property is the standard in some other states, but not in Texas. You can end up with a lot more, or a lot less, than 50% of the community property so you better understand the legal standard the judge is going to use.

It may not mean much to you right now, but if you have significant property to divide in your Woodlands Divorce case then the words “just and right” may end up haunting you if you are not prepared. “Just and Right” is Read more…