rest of chapter 8 and all of chapter 9
Chapter Overview of Jurisdiction and Marital Property Distribution
Importance of Jurisdiction in Divorce
Definition of Jurisdiction: The legal authority of a court to hear and resolve a case.
Types of Authority:
Subject Matter Jurisdiction: The court's power to hear specific types of cases (i.e., divorce).
Personal Jurisdiction: The court's authority over the individuals involved in the case.
Jurisdiction Requirements in Texas:
Must demonstrate domicile in Texas for a specified period (usually at least six months) before filing for divorce.
Residency in the specific county for at least 90 days before filing in that county.
Long Arm Statute: Allows Texas courts to exert jurisdiction over non-residents based on certain ties to the state (e.g., property ownership, business presence).
Distribution of Marital Property in Texas
Community Property Definition: Property acquired during marriage; subject to division upon divorce.
Separate Property Definition: Property owned by one spouse prior to marriage or acquired by gift/inheritance; not divided.
Legal Standards of Property Distribution
Texas Family Code Section 7.001: State mandates a distribution that is "just and fair" rather than a strict 50/50 split.
Factors Influencing Distribution:
Fault in Breakdown: Adultery, cruelty, abuse; may affect property division despite no-fault filings.
Earning Ability Differences: Considerations for spouses’ income potential (e.g., one spouse may have stayed home).
Health and Age: Evaluating the impact of age and health on earning potential or need.
Financial Contributions: Determining financial and non-financial (homemaking) contributions during marriage.
Wasting Community Assets: Spending community funds on affairs or unnecessary expenses.
Size of Separate Property Estates: Challenges in equitable distribution when one spouse boasts significantly more separate assets.
Child Custody Considerations: Primary caretaker might be awarded the family home for the stability of the children.
Tax Consequences: Evaluating the financial implications of dividing property.
Process of Property Division
Methods of Property Assignment:
Courts typically assign specific property and debts rather than selling everything outright.
Cash payments can be made to balance the division.
Qualified Domestic Relations Order (QDRO): Required for the division of retirement accounts to specify how assets are split and to ensure compliance with the retirement plan provider.
Final Decree: A court order documenting the division of property and debts that spouses must adhere to post-divorce.
Common Scenarios in Divorce Property Division
Family Home Disputes:
Often the most contentious asset due to emotional and financial ties.
Judges may award the home to the spouse with primary child custody to ensure children's stability.
Other assets (e.g., vehicles, jewelry) may be negotiated to balance out property equity.
Alternative Options for Division:
Selling the home and splitting the proceeds, purchasing the other spouse's share, or exclusive use arrangements until children reach adulthood.
Tax Implications of Property Transfers
Tax-Free Transfers: Property transfers between spouses as part of a divorce are not taxed as sales, allowing both parties to move forward without initial tax burdens.
Cost Basis Transfer: The receiving spouse adopts the original purchase price as the cost basis, which can result in future tax liabilities upon the eventual sale of the property.
Importance of Receipts: Keeping records is critical for tax compliance, especially surrounding asset exchanges.
Child and Spousal Support Jurisdiction
Jurisdiction for Support Orders: Courts maintain authority over child support or spousal support if they have personal jurisdiction over the involved parties.
Personal Jurisdiction: Must be established per individual circumstances of residency, service of process, or agreement.
Uniform Interstate Family Support Act (UIFSA): Provides mechanisms for enforcing child support across state lines, allowing Texas to retain control as long as at least one party resides in the state.
Continuing Jurisdiction: A court that issues a custody or support order retains authority to modify that order unless a significant change occurs or all involved parties relocate.
Additional Considerations
Moving and Jurisdiction Changes: Moving families can complicate jurisdiction for custody cases, but courts have established rules for determining authority.
Emergency Jurisdiction: States can intervene when immediate child protection is necessary, especially if a child is present there and at risk.
Deployment and Temporary Orders: Federal laws permit military personnel to delay hearings during deployments, ensuring that service members can participate in legal matters post-service.
Review and Quiz Preparation
Prepare for a comprehensive review on community property distribution and jurisdiction issues, and ensure to understand both theoretical concepts and practical applications prior to the quiz.