Alsenz v. Alsenz

101 S.W.3d 648, 2003 Tex. App. LEXIS 1785, 2003 WL 558564
CourtCourt of Appeals of Texas
DecidedFebruary 27, 2003
Docket01-01-00369-CV
StatusPublished
Cited by75 cases

This text of 101 S.W.3d 648 (Alsenz v. Alsenz) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alsenz v. Alsenz, 101 S.W.3d 648, 2003 Tex. App. LEXIS 1785, 2003 WL 558564 (Tex. Ct. App. 2003).

Opinion

OPINION

EVELYN V. KEYES, Justice.

We are asked to determine whether the trial court’s division of property pursuant to a divorce between appellant, Richard H. Alsenz, and appellee, Marjorie Sue Alsenz, was just and proper. In an issue of first impression, we must decide whether royalty payments received during marriage from inventions patented before the marriage should be classified as community or separate property.

Richard contends: (1) we should abate this appeal and direct the trial court to make findings of facts and conclusions of law; (2) he is entitled to a new trial because Sue did not disclose on her inventory a $39,565 accounts-payable claim; (3) the trial court mischaracterized his separate property as community property; and (4) the trial court abused its discretion in (i) awarding Sue 60% of certain assets, (ii) reimbursing Sue 50% of community funds that Richard lost in stock market day trading, and (in) reimbursing Sue 50% of community funds spent on Richard’s car.

We reverse and remand.

Factual & Procedural Background

Richard holds a master’s degree in physics. He is an inventor who is consid *651 ered an expert in the field of refrigeration; he has invented and patented more than 35 devices that improve electronic refrigeration. In 1975, Richard founded Altech Controls, Inc. to develop and market his inventions. He is currently the president and majority shareholder of Altech, and has assigned all of his patents to the company. Some of these patents result in marketable products; others do not.

Richard and Sue married in 1996. Shortly after the marriage, Altech hired Sue as a consultant. Sue formed the “MSA” corporation to receive her salary from Altech plus income from items she sold on EBay, an internet auction site. Sue and Richard had no joint bank accounts or joint credit cards; each deposited their income into separate bank accounts.

Neither the marriage nor the business fared well. The record is replete with instances of marital discord. The record also reflects that, by 2000, Altech’s sales decreased from $4 million to $1.5 million, its employees decreased from 37 to 12, and the remaining employees took pay cuts.

In addition to drawing a salary from Altech, Richard receives royalties of 4 percent of the gross sales of products developed from his inventions. During his marriage to Sue, Richard received $706,730.56 in royalties from the sales of devices he invented, patented, and assigned to Altech before the couple married. Richard deposited these royalties into his separate bank account. None of the inventions he developed during his marriage to Sue is currently generating royalties. Whether any of these inventions will generate royalties in the future depends upon several factors, including Altech’s financial means to develop a product from the invention and the ability to market it successfully. Sue has not asked for a share of any future royalties from the inventions patented during the marriage.

Richard petitioned for divorce in June 2000. In a pretrial ruling, the court declared Richard’s royalty income to be community property. In January 2001, after a 4-day bench trial, the court granted the parties a no-fault divorce decree, granted Sue’s request for a protective order, and divided the property unequally. Richard and Sue agreed on a more practical property division, stipulating to a calculation that recognized the nature and value of their respective reimbursement claims, and the trial court incorporated these agreed changes into its final decree.

The trial court did not file requested findings of fact and conclusions of law and denied Richard’s motions for new trial and to vacate the decree. While this appeal was pending, Richard and Sue entered into a partial Rule 11 settlement agreement regarding the marital residence. Tex.R. Civ. P. 11. Sue relinquished her interest in the house and promised to execute a special warranty deed in exchange for recovery of her personal property.

As a threshold matter, we address Sue’s argument that the agreements reached between the parties after the divorce decree was issued act as a bar to Richard’s complaints on appeal. She cites no authority to support her contention that the partial agreement operates as a consent judgment. She likewise cites no authority to show that Richard waived his right to complain about certain aspects of the property division because the parties were able to agree about other aspects of the division. We reject these arguments, and turn to Richard’s appellate issues.

Findings of Fact and Conclusions of Law

In issue one, Richard argues that the trial court erred in not making re *652 quested findings of fact and conclusions of law. He contends that he has been forced to guess at the trial court’s basis for its rulings. A trial court’s failure to file findings of fact and conclusions of law is presumed reversible, unless the record affirmatively shows that the requesting party was not harmed by their absence. Tenery v. Tenery, 932 S.W.2d 29, 30 (Tex.1996). If a party is prevented from presenting his case on appeal, he has been harmed. Id.

Although Richard contends that the trial court’s rendition and decree are confusing and that he cannot discern what amounts were allowed for the parties’ reimbursement claims, the record does not support this contention. The attachments to the decree clearly identify the nature and source of all of the couple’s financial assets and debts, their claims for reimbursement, and the proportion of the court’s division. Thus, it is possible to follow each asset, claim, and debt from its inception to its ultimate disposition. Moreover, Richard does not appear to have had any problem presenting his case on appeal. Accordingly, we conclude that he has not been harmed by the absence of findings of fact and conclusions of law.

We overrule issue one.

Royalty Payments

In issue three, Richard contends the trial court erred by characterizing the royalty payments he received on his patents during the marriage as community property instead of separate property, thus divesting him of his separate property. A spouse’s separate property consists in part of property owned or claimed by the spouse before marriage. Tex. Fam. Code Ann. § 3.001(1) (Vernon 1998). Community property consists of property other than separate property that is acquired by either spouse during the marriage. Tex. Fam.Code Ann. § 3.002 (Vernon 1998). The characterization of property as either “community” or “separate” is determined by the inception of title to the property. Barnett v. Barnett, 67 S.W.3d 107, 111 (Tex.2001); Smith v. Buss, 144 S.W.2d 529, 532 (Tex.1940). Inception of title occurs when a party first has the right of claim to the property. Strong v. Garrett, 148 Tex. 265, 224 S.W.2d 471 (1949); Wierzchula v. Wierzchula,

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Bluebook (online)
101 S.W.3d 648, 2003 Tex. App. LEXIS 1785, 2003 WL 558564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alsenz-v-alsenz-texapp-2003.