Legal Question in Family Law in Texas

% Owner per verbal agreement in Divorce

I have been married 9 years. In that time my husband has become %25 or better owner in the company he works for via verbal agreement I think because i've never seen any written documantation. The company was to be sold a while back and I have documentation showing he was to recieve $1.2 million dollars as his share of the sale. The company did not sell and we are discussing divorce. He informed me the company has been ''re-structured'' and his portion is in no way accessable to me in a divorce case. Could a Trust or Partnership be set up to cut me out? 50% of his shares/value should be community property, correct? This is the only real asset we have. I left a $130,000 per year job to follow him so he could join this firm.


Asked on 8/19/06, 10:41 pm

2 Answers from Attorneys
TC Langford Langford Law Office

Re: % Owner per verbal agreement in Divorce

Mr. Pederson is right.

Additionally, you need to start doing some detective work around your own home, and begin accumulating some of the paperwork that a CPA or attorney could use to develop that paper trail.

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Answered on 8/21/06, 12:15 pm
Marc Pederson Pederson Law Office

Re: % Owner per verbal agreement in Divorce

If he accumulated a $1.2 million share of a company, he can't simply make it go away through some accounting wizardry. This very much sounds like a "legal fiction" versus "economic substance" situation. In addition to being a lawyer, I'm also a CPA, and I am sure that there would be some sort of audit trail to divulge what's going on.

Of course, I'm talking generalities. I would need to see the books and records, which would be easily obtained through the discovery process. If assets are being hidden behind, for example, a corporate identity, the courts can "pierce the corporate veil" to give recognition to equitable considerations, rather than "legal fictions."

I urge you DO NOT sign or agree to anything without being advised by an attorney. Please let me know of I can be of further assistance.

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Answered on 8/20/06, 8:47 am


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