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Cohabitation and Domestic Partnership Agreements in Texas

Premarital and post-marital agreements in Texas have a complex history immersed in the community property presumption, the sate constitution, statutes and case law. Originally, such agreements were found to be unenforceable. But with amendments to the Texas Constitution, evolving statutes, recent case law, and improved draftsmanship, such agreements are now enforceable under contract law.

For some couples living together is a precursor to marriage; for others, there is no intent to ever marry, or the law prohibits the marriage, as in Texas with same sex marriages. The simple fact is, domestic partnership agreements involve a wide variety of circumstances, which may or may not involve the gay or lesbian couple.

Many couples choose to live together so they do not lose certain benefits under current rules of social security, military and insurance disability programs, or to stop those benefits from being taken away from their children. In other cases, couples who are divorced, and who may have children, may want to protect certain assets. In situations such as trust funds or inherited funds, beneficiaries simply do not want to place family money at risk. Other couples choose to shelter their own resources from the real or perceived obligations of their partner.

The marital agreement is considered to be a contract under Texas law. The premarital agreement must be in writing and signed by both parties. No actual consideration is required; however, to conform with contractual law, it may be wise to provide benefits for the non-monied party to avoid a later finding of unconscionability, particularly if the financial condition of the non-monied party under the agreement will be poor.

Matters that may be dealt with in a premarital agreement include, but are not limited to, the following:

1. the right to buy, sell, use, transfer, exchange, abandon, lease, consume, expend, assign, create a security interest in, mortgage, encumber, dispose of, or otherwise manage and control property;

2. the rights and obligations of each of the parties in any of the property of either or both of them whenever or wherever acquired or located;

3. the disposition of property on separation, marital dissolution, death, or the occurrence or nonoccurrence of any other event;

4. the modification or elimination of spousal support;

5. the making of a will, trust, or other arrangement to carry out the provisions of the agreement;

6. the ownership rights in and disposition of the death benefit from a life insurance policy;

7. the choice of law governing the construction of the agreement; and

8. any other matter, including their personal rights and obligations, not in violation of public policy or a statute imposing a criminal penalty.

Child support may not be adversely affected by a premarital agreement. Therefore, provisions providing for the elimination of child support upon separation or divorce are unenforceable. However, provisions for private education, college expenses, and choice of residence may be included, but may still be reviewed by a court to determine if they are in keeping with public policy.

In post-marital agreements, it has been noted that a fiduciary duty exists that is not present in pre-marital agreements between spouses or prospective spouses. Case law states that a confidential relationship between husband and wife imposes the same duties of good faith and fair dealing on spouses as required of partners and other fiduciaries. However, adverse parties who have retained independent counsel may not owe fiduciary duties to one another. Texas Legislature enacted Section 4.105 with the understanding that married spouses owing fiduciary duties to one another would negotiate and execute post-marital agreements. Not withstanding these duties, the legislature manifested the strong policy preference that voluntarily made post-marital agreements are enforceable.
Cohabitation, domestic partnership, premarital and post-marital agreements may be as creative as a party determines necessary. However, care must be given to see that such agreements protect the party, keep with public policy, and adhere to current Texas family law and applicable contractual law.

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BEWARE: Social Networking Sites and the Law

Social Networking Sites originated in the mid-1990’s, but only recently began to expand across the web. Two of the largest social networking sites are MySpace (with over 118 million members) and Facebook (with over 120 million members).

The concept of social networking is easy enough. You begin by filling out a profile, then you look for people you know. When you find someone, you click to add him or her as a friend. Once this is done, you can see who your friends know, who your friends’ friends know, and so on. Social networking is a wonderful avenue for connecting with persons across the globe, but must be done with caution. Keep in mind, pictures, comments, and other information placed on your site may be accessed in any number of ways and may upon proper predicate be used against you in litigation.

Family law practitioners can uncover a wealth of information using social networking sites. Many firms are now making it routine to perform MySpace, Facebook and Match.com searches to see if they can obtain useful information on the opposing party, witnesses, or experts. Such diligence has paid off in some cases. In one case in particular, pictures were discovered of a wife’s sexually explicit boasts on her boyfriend’s MySpace page. The evidence obtained assisted lawyers in securing child custody for the husband. In another case, an attorney was able to undermine an opposing spouse’s credibility when she confronted him with his MySpace page describing him as “single and looking.” While yet another case was won because a husband presented himself as “divorced” and gave a long description of the type of woman he wanted to meet. Information obtained from these sites can be very useful when counsel is trying to provide proof of a spouse’s infidelity. Therefore, is important to carefully and periodically monitor what you place on your social networking site.

Social network evidence may in most cases also be used in child custody cases. Pictures of a parent in various compromising situations while a child or children are in the parent’s custody can present a major problem in a custody lawsuit. Partying, drinking, and negative statements about children used on social networking sites can be offered as evidence in Court. Parents should use caution when placing pictures and other information on their social networking site.

Keep in mind that your employer can access your social networking site. In one case, a partner in one of Dallas’s larger law firms used MySpace and Facebook to uncover details of a client’s former employee and her plans to circumvent a non-compete agreement.

Social networking has also been used in sexual harassment cases. In Houston, Texas, a plaintiff was portrayed as a modest, innocent “wannabe nun.” The opposing counsel found a MySpace page that painted a very different picture of a plaintiff, with numerous photos of her in scanty or provocative attire and engaged in suggestive horseplay at bars and with friends.

Evidence obtained from social networking sites has been used in personal injury and in criminal cases. Attorneys are running cyber checks on jury pools. Many firms are running cyber searches on new clients, witnesses, opposing parties and experts.

In the ever growing and expanding world of cyberspace, it is becoming increasingly important that you inform your counsel of any and all internet usage, sites and blogs which you have joined or participated in so that they may represent you and be properly prepared.

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In Sickness and in Health: When is the Right Time to Prepare a Will

Despite the recent drama over Michael Jackson’s death, he did many things right when it comes to end-of-life estate planning. The most critical thing Jackson did was to name a business associate as executor to carry out his wishes and designate a guardian for his minor children. He also set up a family trust that should keep the division of his estate out of the public eye.

As opposed to Jackson, Steve McNair, former NFL quarterback, died intestate (without a will). According to reports not personally verified by the writer, McNair had a wife, two children from a former marriage, and two children from a previous relationship. Now, instead of being able to decide for himself how his property should be distributed, the distribution of his assets will be determined by a formula set forth under state law.

Too often people do not get around to making a will. The problem is there is no deadline to make sure it is done before your death, and people do not like to think about dying. It is important to remember that if you die without a will state law dictates what happens to your property and assets and a court of law may determine who has custody of your children.

While mortality is a difficult topic to discuss or think about, leaving your family with large financial decisions isn’t pleasant either. Start by assessing your overall financial picture – your net worth. You need to identify not only your financial investment assets but also the value of your real and personal property.

Craft a will. With the assistance of an attorney, you can outline how you wish your estate – your assets and liabilities – to pass through after your death. Your assets along with your debt will need to be handled by your family. Identify anything that may need to be taken care of in case you are incapacitated. Check on taxes that may need to be paid by your estate. Remember to keep your will updated if you move, remarry, divorce, or experience any significant change in your life.

In some cases you may wish to discuss your desires with trusted family members. By letting others know what your plans are, you can prevent misunderstandings after your death. In some cases complete privacy is indicated. Choose an executor. Whether it is a family member or friend, the executor needs to be someone that can be trusted to handle the decisions and paperwork surrounding your death and the probate of your estate. Choose a successor. Be careful when choosing a spouse whose health may be failing along with your own.

Protect your assets with a trust. Setting up trusts can allow you to provide for your family and beneficiaries after you are gone and in some cases bypass probate and the associated expenses altogether. Plus, in the appropriate case and jurisdiction a trust may aid in lessening the potential taxes on your estate. Talk over your planning and estate needs with a financial advisor. You can provide an income to a surviving spouse and children, safeguard your assets until your children reach a set age or establish a trust for a charitable organization. The benefits of a trust are: federal unified tax credit to leave assets tax-free; providing income to one beneficiary for his or her lifetime, and the balance to others; professional investment assistance and management; and postponing estate taxes with property transfers. The various types of trusts you may want to consider and/or discuss with your attorney are: revocable living trust; testamentary trust; living trust; and irrevocable and charitable trusts.

Keep your children in mind. Make sure that you name a guardian who will care for them into adulthood. Establish how you want your children to inherit your estate, whether it is through investments or trusts. Choosing the guardian of your children is very important. Be sure that whomever you name is aware of and willing to take on the responsibility. You may want to also take into consideration their age and health.

Periodically review your plan (especially in the case of divorce or death of a spouse or beneficiary). Your estate will change over time. Do not assume that what you set up five years ago will be what is best for your present estate. Money grows, investments change, you may downsize your housing needs – reassess your plan and make the changes in writing.

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A Father’s Uphill Battle – I Love My Children

A regrettable truth in family law often finds one parent unilaterally removing a child from the other parent while dissolving a marriage without any grounds or evidence of wrongdoing. Not surprisingly, disturbing numbers of children are routinely separated from loving, responsible parents for reasons that have nothing to do with their wishes, safety, health, or welfare and many times have to do with a lack of proper legal counsel.

In 50% of the marriages that end in divorce, 80% of these are over the objection of one spouse (close to 100% when children are involved). I am sure you have heard about “custody battles,” but you probably do not know that many start out with one parent taking a child from the other and refusing visitation until a court orders possession sometimes months down the line. You have heard about the witch hunt for “deadbeat dads,” but did you know that many of these fathers are well educated men who have lost their jobs due to a downtrodden economy and still love their children and want to play a leading role in their lives and upbringing. You have heard the hysteria over “child abuse,” but did you know that many accusations against fathers are shown to be false and used by one parent as a weapon to alienate the children from the other parent.

David Popenoe in his book “Life Without Father” tells us that negative consequences of fatherlessness are all around us. Evidence indicating damage to children growing up in fatherless homes has accumulated in near tidal-wave proportions. Fatherless children experience significantly more physical, emotional, and behavioral problems than do children growing up in intact families.

Children from fatherless homes are:

• 5 times more likely to commit suicide


• 32 times more likely to run away


• 20 times more likely to have behavioral disorders


• 14 times more likely to commit rape


• 9 times more likely to drop out of high school


• 10 times more likely to abuse chemical substances


• 9 times more likely to end up in a state-operated institution


• 20 times more likely to end up in prison.

(Information from Mark Hall, Father’s Manifesto).

In “My Rewar, My Punishment…My Son, Sons of Divorce,” Steven Manchester describes the situation many dads are dealing with when exercising visitation:

“I’d take my son for our court-ordered visits, only to drop him off two hours later, so another man could bounce him off his lap. Ironically, each new boyfriend was given all the time he wanted with my son. At first, it killed me, but I decided, “Whatever’s best for my boy. His happiness must come first!” Though it stung terribly, that attitude sustained me all the way to Christmas.

I waited in my old driveway for 4 excruciating hours, while three inches of snow muffled the screams from the cab of my truck. When they finally pulled in, my ex-wife snickered, “I must have lost track of time?” and handed over my son. I was livid! My boy was dead tired and half-asleep. And the EX…well…she just grinned, confident that there was nothing I could do about it. It took everything I had left to conceal my tears. I didn’t plan to give her anything for Christmas and was doing my best to stick to the plan.”

It is a sad scenario. 

In divorce court, many fathers are left feeling that everything they have done, years of hard work, years of tender love, years of unstinting devotion to their family and children count as nothing.

In the 1960’s women fought hard to get laws passed to protect them against family violence, stalking and sexual harassment.  The shame is that women of the 1990′s now use these same needed and appropriate laws wrongfully to their advantage and feel justified in punishing their spouse for wrongs they feel have been done to them by misusing the legal system; and in the process erase fathers from the lives of their children!

The facts are that many times the courtroom becomes a legal battleground.  Inadequate counsel or absence of counsel can result in decisions that negatively affect children and the family for years to come.

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Psychological Impact Of Marital Dissolution On The Nuclear Family – or

The cost, effectiveness, pain, and complexity of a divorce is frequently directly related to that point in time in which the man and woman accept an emotional divorce. Generally, the divorce commences at the time of the filing of the petitioner’s original petition and ends, absent appeal, thirty days following the entry of a final judgment of divorce. The emotional divorce, however, may occur prior to the commencement of the action, during the commencement of the action, or following entry of a final judgment. Likewise, the emotional divorce may be accepted prior to the commencement of the action, following the filing of the original petition or after entry of a final judgment. Although there are a number of cases in which fault primarily rests with one spouse, experience has shown that emotional acceptance, in the vast majority of divorce cases, can only occur when both husband and wife accept partial fault. In other words, at the core of all marital disputes is the unrecognized and repressed reality that both parties may have made a poor judgment in electing to commence the marital compact in the first place.

 

Absent adult and real emotional acceptance of some level of partial responsibility for failed judgment, divorce wars can evolve primarily to establish who is “wrong” or “responsible” or “at fault” and generally lead to higher costs, attorney’s fees, expense, expert fees and other strategical expenses necessary to fully put forward the position of the client. The ammunition employed by the attorney on behalf of the client is available from a number of categories, including temporary and, in some cases, post-divorce alimony, asset distribution, asset allocation, child support, possession periods with the children, holidays with the children, payment of attorney’s fees, depositions, document discovery and analysis, psychological evaluations, drug testing, etc.

If, in fact, the emotional acceptance of the dissolution has occurred prior to or relatively near commencement of the divorce proceeding, it is much simpler and emotionally constructive to address the underlying core issues in the divorce more quickly and effectively. Those issues in a relationship with children, blended or otherwise, should and frequently do in an acceptance situation, revolve around the best interest of the children and the constructive approach to an adult respectful resolution that takes into account the future stability and workability of the husband and wife and particularly the children to a relationship. Frequently, the key to a quick, more cost effective and therapeutic result is the employment of qualified counselors to aid the parties on this very difficult and complicated road that must be walked prior to commencing a different life following dissolution. When there are children involved, the sooner the parties recognize that though they may divorce one another they are not divorcing their children, the sooner the recovery process can begin. Regardless of fault, responsibility or other adversarial issues, for both husband and wife, there will be future soccer games, T-ball games, graduations, marriages, funerals, reunions and other social events which in all reasonable probability, they will both be in attendance. So long as both spouses place the best interests of the child above their own best interest, in a large majority of the cases, regardless of who is at fault, a reasonable and cost effective result may be expeditiously accomplished.

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