Can an ex claim a former spouse’s post-divorce bonus? A recent opinion by the Texas Supreme Court provides important guidance on the division of financial assets in such scenarios and clarifies what constitutes community property in family law disputes.
Following September 2024 oral arguments by Duffee + Eitzen partners Jodi Bender and Lisa Duffee, the state’s highest appellate court returned an across-the-board win for the D+E team in the closely watched case. On April 4, 2025, the Court rejected the opposing counsel’s rehearing request. Click here to see the September oral arguments. Click here to read the opinion.
The court resolved three questions raised in the case, including:
- Regarding whether a discretionary bonus received by a spouse after a divorce can be considered community property: The Supreme Court found that bonuses received after a divorce can be considered community property and divided evenly if the bonus was earned while the couple was still married.
- Regarding whether a house that was owned by a spouse before a marriage but later refinanced during the marriage with non-owner spouse listed as a grantee can be considered community property: The SCOTX opinion found that the husband gifted a 50% interest to his wife as her separate property..
- Regarding a 401k account that included contributions from both before and during a marriage: The SCOTX opinion found that the husband in the case had not sufficiently accounted for his pre-marriage contributions and denied a request to exclude the 401k from classification as community property.
The case is In Re J.Y.O., a Child, No. 22-0787, in the Supreme Court of Texas.
The case demonstrates the sophisticated legal representation and appellate expertise that Dallas-based family law firm Duffee + Eitzen is able to provide clients.
“This ruling provides much-needed clarity on a previously gray area of marital property division,” said Ms. Bender. “It establishes a framework for courts to consider when dividing assets received after divorce, ensuring a fair and equitable outcome for both parties.”
“Jodi Bender’s unwavering advocacy before the Texas Supreme Court was instrumental in securing this critical victory,” said Ms. Duffee. “Her dedication and skill in this case secured a significant victory for our client and set an important precedent for future divorce cases.”
What is community property in divorce?
In Texas, community property is any property acquired during the marriage by either spouse, except for separate property (like assets owned before marriage or gifts received individually). This includes income, investments, and even retirement accounts.
How community property is divided in divorce:
When a couple divorces, Texas family courts generally aim for a fair and equitable division of the community property. This doesn’t always mean a 50/50 split, as the court considers factors like each spouse’s contributions to the marriage and their future needs.
About Duffee + Eitzen
The experienced attorneys at Duffee + Eitzen represent clients in a range of high-stakes divorce and custody matters, including family law disputes with complex business and economic components.