Smith v. Smith

22 S.W.3d 140, 2000 Tex. App. LEXIS 4348, 2000 WL 854853
CourtCourt of Appeals of Texas
DecidedJune 29, 2000
Docket14-96-01080-CV
StatusPublished
Cited by227 cases

This text of 22 S.W.3d 140 (Smith v. Smith) 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
Smith v. Smith, 22 S.W.3d 140, 2000 Tex. App. LEXIS 4348, 2000 WL 854853 (Tex. Ct. App. 2000).

Opinions

MAJORITY OPINION ON REHEARING

NORMAN LEE, Justice (Assigned).

We deny the motions for rehearing filed January 3, 2000 and January 18, 2000. We withdraw our opinion of December 2, 1999, and substitute the following.

This is an appeal from the property division in a divorce case. Bruce and Kathleen Smith were married on April 21, 1990. Two children were born during the marriage. The Smiths were separated on July 8, 1994, and soon thereafter Mrs. Smith petitioned for divorce. After a bench trial, the trial court entered the divorce decree, naming Mrs. Smith as the children’s sole managing conservator and dividing the marital estate between the parties. The trial court filed findings of fact and conclusions of law. In five points of error, Mr. Smith complains the trial court erred in (1) awarding his separate property to Mrs. Smith, (2) characterizing some of the funds in Mrs. Smith’s retirement plan as her separate property, and (3) refusing to allow the appellant to have advisory counsel present during the trial. We find the trial court committed reversible error by mischaraeterizing Mr. Smith’s separate property as community property and by divesting Mr. Smith of his separate property. We reverse and remand on the issue of the property division.

STANDARD OF REVIEW

In his first four points of error, Mr. Smith complains the trial court erred in dividing the marital estate. The trial court has broad discretion in dividing the marital estate at divorce. See Murff v. Murff, 615 S.W.2d 696, 698 (Tex.1981). Upon appeal, we presume the trial court used its discretion and will reverse the cause only where the trial court clearly abused that discretion. See id. A clear abuse of discretion is shown only if the division of the property is manifestly unjust and unfair. See id.; Hanson v. Hanson, 672 S.W.2d 274, 277 (Tex.App.-Houston [14 th Dist.] 1984, writ dism’d w.o.j.). We must remand the entire community estate for a new division when we find reversible error that materially affects the trial court’s “just and right” division of the property. See Jacobs v. Jacobs, 687 S.W.2d 731, 732 (Tex.1985).

Appellant’s first four points of error also challenge the legal and factual sufficiency of the evidence. When we review a challenge to the legal sufficiency of the evidence, we consider only the evidence and inferences tending to support the trial court’s findings and disregard all evidence and inferences to the contrary. See Weirich v. Weirich, 833 S.W.2d 942, 945 (Tex.1992). In reviewing the factual sufficiency of the evidence, we must consider and weigh all the evidence and should set aside the judgment only if that judgment is so contrary to the overwhelming weight of the evidence as to be clearly wrong and unjust. See Cain v. Bain, 709 S.W.2d 175, 176 (Tex.1986) (per curiam).

We will review fact findings in a bench trial for legal and factual sufficiency of the evidence by the same standards used in reviewing the evidence supporting a jury’s verdict. See Ortiz v. Jones, 917 S.W.2d 770, 772 (Tex.1996). We review the trial [144]*144court’s conclusions of law de novo as legal questions. See Piazza v. City of Granger, 909 S.W.2d 529, 532 (Tex.App.-Austin 1995, no writ). This court will follow a trial court’s conclusion of law unless it is erroneous as a matter of law. See id.

ATLANTIC FEDERAL CREDIT UNION ACCOUNT

In his first and second points of error, Mr. Smith argues that the trial court erred in characterizing funds in the parties’ Atlantic Federal Credit Union (“AFCU”) bank account as community property and awarding to Mrs. Smith about half of the funds, approximately $50,000. He contends that the evidence was legally and factually insufficient to support the trial court’s finding that the funds remaining in the account were community property. We agree.

As a general rule, property possessed by either spouse during or on dissolution of marriage is presumed to be community property, and a spouse must present clear and convincing evidence to establish that such property is separate property. See Tex. Fam.Code § 5.02.1 Clear and convincing evidence is the degree of proof that will produce in the mind of the trier of fact a firm belief or conviction about the allegations sought to be established. See Tex. Fam.Code § 11.15(c)2; Transportation Ins. Co. v. Moriel, 879 S.W.2d 10, 31 (Tex.1994). To overcome this presumption, the spouse claiming certain property as separate property must trace and clearly identify the property claimed to be separate. See McElwee v. McElwee, 911 S.W.2d 182, 189 (Tex.App.-Houston [1st Dist.] 1995, writ denied). Tracing involves establishing the separate origin of the property through evidence showing the time and means by which the spouse originally obtained possession of the property. See Hilliard v. Hilliard, 725 S.W.2d 722, 723 (Tex.App.-Dallas 1985, no writ).

The evidence cited from the record reveals that the funds in the AFCU account originated from damages awarded to Mr. Smith in a lawsuit he filed before his marriage to Mrs. Smith. The suit arose out of misrepresentations made to him during the purchase of a townhouse.3 Although the misrepresentation suit was filed before the marriage, the trial, appeal, and ultimate recovery of damages took place during the marriage. As a result of the suit, Mr. Smith was awarded a gross amount of $256,248.91. Mr. Smith does not dispute that $81,940.41 of this gross recovery was pre- and postjudgment interest earned during the marriage and was, therefore, community property. See Tex. Fam.Code § 5.01(b).4 He contends that the remainder of the gross award, $174,308.50, and the funds remaining in the account at the dissolution of marriage, approximately $Í00,000, were part of his separate estate.

To support his claim, Mr. Smith relies upon the inception-of-title rule. [145]*145Property is characterized as “separate” or “community” at the time of the inception of title to the property. See Parnell v. Parnell, 811 S.W.2d 267, 269 (Tex.App.Houston [14 th Dist.] 1991, no writ). Inception of title occurs when a party first has right of claim to the property by virtue of which title is finally vested. See Strong v. Garrett, 148 Tex. 265, 271, 224 S.W.2d 471, 474 (1949); Winkle v. Winkle, 951 S.W.2d 80, 88 (Tex.App.-Corpus Christi 1997, pet. denied). Here, Mr. Smith’s right to claim damages relating to the purchase of the townhouse arose before his marriage to Mrs. Smith. Therefore, even though he did not recover for these damages until after the marriage, the damages were his separate property. See Roach v. Roach, 672 S.W.2d 524, 530-31 (Tex.App.Amarillo 1984, no writ) (“It is a familiar principle of law that the separate or community character of property is determined not by the acquisition of the final title ... but by the origin of title.”).

Mrs. Smith argues that Mr.

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Bluebook (online)
22 S.W.3d 140, 2000 Tex. App. LEXIS 4348, 2000 WL 854853, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-smith-texapp-2000.