As a result of his illustrious career, Dr. Dre’s net worth currently sits at a whopping $820 million – but maybe not for long. After 24 years, Dr. Dre’s wife, Nicole Young, is filing for divorce from the producer, rapper, and hip-hop icon. Reports indicate that the couple did not execute a premarital agreement prior to their 1996 marriage, which opens up Dr. Dre to significant financial exposure. In the absence of a premarital agreement, California – a community property state much like Texas – provides that property accumulated during marriage is owned by the community estate. Put simply, all of Dr. Dre’s income during the marriage, from his royalties as a solo rapper to his profits from Beats by Dre, is up for grabs. This means that Dr. Dre could see his hard-earned fortune be split in half right before his eyes in the coming months. Continue Reading ›
Whether a celebrity or not, we all worry about many of the same core issues when facing a divorce – How do I protect my stuff (money, investments, real property, personal property) and how do I protect the kids.
As states begin to emerge from months of lockdown resulting from the COVID-19 pandemic, will there be an increase in divorce filings? This question is of particular interest in Texas, where state and local officials have started the process of easing quarantine restrictions. However, with much uncertainty as to the pandemic in the months ahead, the answer to this question remains unclear at the moment. So, should a potential increase in divorce filings effect your decision-making regarding your own divorce? Perhaps, an even more important consideration is not how many divorces there will be, but rather how filing for divorce changed since the pandemic began. Continue Reading ›
Although courts are still open and conducting Zoom hearings, there is no doubt that many court cases are moving along more slowly than otherwise desired as a result of the COVID-19 pandemic. A potentially more practical and expedient method of divorce is collaborative law. Continue Reading ›
If your business partner is also your life partner, you need to consider a recent Texas high court decision. (read more)
Gonzalez v. Maggio, 500 S.W.3d 656 (Tex. App. – Austin 2016) is a Texas case that illustrates the complexities of ending a business partnership along side of ending a personal partnership. The Texas Court of Appeals reviewed how a husband and wife, who were also law partners, would divide their clients, fees, and remaining clientele.
The case arose out of a divorce in which the husband and wife had also formed a law partnership during their marriage. There was no written partnership agreement but it was undisputed that they shared in the capital, profits and losses 50/50.
According to a recent case from the Texas Court of Appeals in Dallas, a spouse’s secret recording of the other spouse at a time when the other spouse believed he or she was in a private setting can support a tort claim for invasion of privacy. Continue Reading ›
Can a married couple get divorced in Texas while the wife is pregnant?
It is highly unlikely.
Most Texas courts will not grant a divorce to a married couple if the wife is pregnant. Instead, the couple will have to wait until after the baby is born to finalize their divorce, oftentimes causing significant delays to the already lengthy divorce process. This is the case even if the husband and wife both want the divorce and are in agreement on all issues.
In many families, one spouse takes primary responsibility for all the family finances, including the preparation of the joint income tax return. A joint income tax return may provide tax benefits to families that would not be available from filing two separate returns. However, in order to file a joint income tax return, both spouses are required to sign the return. The result of filing a joint tax return is that each spouse is joint and severally liable for any reported tax liability, along with any additional tax, interest, and penalties assessed on the return by the IRS. Even if the couple is later divorced, both spouses remain joint and severally liable for the total liability associated with the joint return. But is this fair to the spouse who did not handle any of the family finances? What if the spouse was also the victim of abuse or domestic violence and was prevented from accessing any of the family financial records?
Congress and the Department of Treasury have created Innocent Spouse Relief, which gives the innocent spouse the ability to request relief from the IRS for the joint liability associated with any additional tax, penalties, or interest assessed on the joint return. To qualify for Innocent Spouse Relief, the innocent spouse must meet all of the following conditions:
Alex Graves, award-winning director of “The West Wing” recently finalized his divorce from his wife of 19 years. Pursuant to the final order, the spouses’ property was divided evenly. Does the State of Texas mandate a fifty-fifty division of property upon divorce? The short answer is “no.” Continue Reading ›
A Court in Houston recently reinforced the importance of honesty and full disclosure during the Collaborative Law process when it found that a husband potentially committed fraud by failing to disclose changing job circumstances. See Rawls v. Rawls, 2015 WL 5076283 (Tex. App.–Houston [1st Dist.] 2015, no pet.).
A husband and wife in Houston chose to use Collaborative Law to complete their divorce proceedings in 2014. They successfully reached a settlement that included provisions for the wife to receive portions of her husband’s bonus over the next few years. Unfortunately, before the settlement agreement was signed, the husband received a job offer, which he failed to disclose to his wife, and he resigned from his job. Full and complete disclosures of such information is a critical part of the Collaborative Law process, because the goal is to make both parties feel safe to make informed decisions. The Houston Court is currently examining whether the husband committed fraud and breached a fiduciary duty under the Collaborative Law agreement he signed by concealing his job change from his former spouse during the collaborative law process. Continue Reading ›