Williams v. Williams

246 S.W.3d 207, 2007 WL 4195666
CourtCourt of Appeals of Texas
DecidedJanuary 31, 2008
Docket14-05-00975-CV
StatusPublished
Cited by23 cases

This text of 246 S.W.3d 207 (Williams v. Williams) 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
Williams v. Williams, 246 S.W.3d 207, 2007 WL 4195666 (Tex. Ct. App. 2008).

Opinions

MAJORITY OPINION

WANDA McKEE FOWLER, Justice.

Mona Ellen Williams appeals from the trial court’s judgment of divorce and its interpretation of the parties’ premarital agreement. In her sole issue, Mona contends the trial court reversibly erred in its interpretation of the parties’ premarital agreement and its finding that, pursuant to the terms of this agreement, there was no community property in the marital estate. Because we agree that the trial court erred in its interpretation of the premarital agreement and thus, in its characterization of the parties’ “salaries, wages, and other income earned during the marriage” as them separate property, we reverse that portion of the trial court’s judgment regarding the division of the marital estate and remand to the trial court for further proceedings consistent with this opinion. We affirm the trial court’s judgment in all other respects.

Factual and Procedural Background

On April 21, 1990, Mona and Billy Jack (“B.J.”) Williams were married. One day earlier, the parties executed an “Agreement in Contemplation of Marriage” (“the premarital agreement”),1 the terms of which are the subject of this appeal. The [209]*209premarital agreement provided, in pertinent part:

1.1 Purpose. It is the general intention of the parties that the separate character of the properties of each will be preserved after the marriage from the standpoint of management, accounting, liabilities, ownership, and otherwise, subject at all times to their unrestricted right by mutual agreement to modify or rescind their contract; and it is their general intent that from a property standpoint their respective rights as they exist at the date of the marriage and as they may exist thereafter will continue with like effect without change of the character of the property.
Without in any manner limiting the remaining provisions of this agreement, it is, therefore, the parties’ general purpose, intent and agreement that (i) each will continue to own and to manage his or her separate property, respectively, (ii) all revenues, increases, and income from such separate property and from their respective personal efforts will be separate property, subject to the sole management and control by the party whose separate property generated such revenues, increases, property, or income, (in) the separate estate of each party, respectively, will bear all of such party’s obligations and liabilities presently existing or hereafter undertaken or arising, (iv) their respective separate property and all increases in value, mutations, additions and income therefrom will remain the separate property of the party owning same at the time of the marriage.

Thirteen years later, B.J. filed an original petition for divorce; Mona responded with an answer and a counter-petition for divorce. During the divorce proceedings, Mona sought a declaratory judgment that the salaries earned by the parties during their marriage were not covered by the premarital agreement, and therefore were community property and part of the community estate. The trial judge conducted a hearing, at which Mona’s counsel presented the testimony of four witnesses, including Mona, over B.J.’s continuing objections. After the hearing, the trial judge faxed a draft ruling to the parties. In his ruling, the trial judge stated:

The Court finds that the following language is dispositive: ... “(ii) all revenues, increases, and income from such separate property and from their respective personal efforts will be separate property,” ... It appears that the clear meaning of these clauses says: ... income ... from their respective personal efforts ... is to continue to be their separate property after marriage. Supporting this position is the testimony that there was never a joint account, that the parties put their salaries, wages, etc. into accounts only held by the person earning those wages, salaries, etc.

(emphasis in original). The trial court ultimately ruled that the “salaries, wages, and other income of each party remained that person’s separate property.” Several weeks later, the trial court issued its order on Mona’s petition for declaratory judgment, which incorporated the terms of the draft ruling and decreed that, pursuant to the language of the premarital agreement, “no community property was acquired by either party as a result of their respective salaries, wages, and other income earned during the marriage.”

Finally, on June 6, 2005, the trial court issued its final decree of divorce. The [210]*210decree incorporated the trial court’s declaratory judgment order and, based on the findings reflected in that order, declared that no community property existed in the marital estate. At Mona’s request, the trial court thereafter issued findings of fact and conclusions of law. Among other things, the trial court found that the premarital agreement was “inclusive of salaries, wages, and other income of each party and as such salaries, wages, and other income remain the separate property of the respective party earning such.” The trial court also found that “no community property [was] accumulated during the course of the marriage.” Based on the terms of the premarital agreement, the trial court entered a conclusion of law that “no community property existed to be divided by the Court.” This appeal followed.

Issue on Appeal

Mona challenges the trial court’s interpretation of the premarital agreement and its finding that no community property existed in the marital estate for the court to divide. Mona contends that the language of the premarital agreement is ambiguous, and that there is no evidence to support the trial court’s construction of that agreement. Alternatively, she asserts that, if this Court determines that the premarital agreement is unambiguous, the trial court’s finding is against the great weight and preponderance of the evidence presented at trial. She urges this Court to either (1) hold as a matter of law that the premarital agreement does not address the wages and salaries earned by the parties during marriage, and remand the ease to the trial court with instructions to divide the marital estate in a manner consistent with this Court’s ruling; or (2) remand the case to the trial court to hear additional evidence on the applicability of the premarital agreement to the wages and salaries of the parties earned during marriage.

For the following reasons, we agree that, as a matter of law, the premarital agreement does not address the wages and salaries earned by the parties during marriage, and therefore, they retained their status as community property. As a result, we reverse that portion of the trial court’s judgment regarding the division of the marital estate and remand for further proceedings consistent with this opinion. We affirm the trial court’s judgment in all other respects.

Analysis

A. Standard of Review and Applicable Law.

Generally, in Texas, courts interpret premarital agreements like other written contracts. See, e.g. Beck v. Beck, 814 S.W.2d 745, 748-49 (Tex.1991); Osorno v. Osorno, 76 S.W.3d 509, 510-11 (Tex. App.-Houston [14th Dist.] 2002, no pet.).

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Cite This Page — Counsel Stack

Bluebook (online)
246 S.W.3d 207, 2007 WL 4195666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-williams-texapp-2008.