Court of Appeals Greenlights Post-Divorce Asset Division

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By Michael Granata on Sep 04, 2025

Posted in Industry News

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Going through a divorce is one of life’s most challenging experiences, and discovering that important property wasn’t addressed in your final decree can feel overwhelming. If you’re facing this situation in Dallas or the surrounding areas, you’re not alone—and there are legal remedies available. A recent Texas Court of Appeals case, Bernabe Felix Serna v. Martha Serna, provides crucial insights into how Texas courts handle property that was overlooked or intentionally excluded from divorce settlements.

As an experienced dallas divorce attorney with over 25 years of practice, I’ve helped countless clients navigate these complex post-divorce property issues. This case demonstrates why having knowledgeable legal representation is essential, whether you’re currently going through a divorce or dealing with unresolved property matters years after your decree was finalized.

Case Summary: The Serna Property Division Appeal

The Bernabe Felix Serna v. Martha Serna case, decided by the Texas Court of Appeals in August 2025, illustrates the complexities that can arise when divorce decrees fail to address all marital property. Understanding this case can help Dallas-area residents recognize similar issues in their own situations and the importance of working with a qualified family law attorney serving Dallas.

Background of the Case

Per the published case, Bernabe and Martha Serna were married in 1981 and divorced in 2009 in Texas. During their marriage, Martha purchased property in Colorado. However, their 2009 divorce decree did not address this Colorado property because the parties “agreed to divide the property among themselves later.” This informal arrangement worked for over a decade until 2023, when Martha informed Bernabe that she would not honor their agreement and subsequently transferred the property to a third party.

This situation is more common than many people realize. During divorce proceedings, couples sometimes agree to handle certain assets privately, or important property may be inadvertently overlooked. When these informal agreements break down or overlooked assets are discovered, former spouses need legal recourse to protect their interests.

The Legal Challenge

In 2023, Bernabe filed a lawsuit seeking:

  • A declaration that the Colorado property was community property
  • Division of the property giving him his 50% interest
  • Attorney’s fees and court costs

Martha responded by filing a Rule 91a motion to dismiss, arguing that:

  1. Bernabe failed to state a legally cognizable claim
  2. The Colorado property was her separate property under Colorado law
  3. Texas courts lacked jurisdiction over out-of-state property

A Rule 91a motion is a powerful tool that allows defendants to seek dismissal of cases that fail to state a valid legal claim. The trial court granted Martha’s motion, effectively ending Bernabe’s case at the trial level. However, as this appeal demonstrates, the trial court’s decision was premature and legally incorrect.

The Court of Appeals Decision

The Texas Court of Appeals reversed the trial court’s dismissal, addressing each of Martha’s arguments systematically. This decision provides important guidance for anyone dealing with similar post-divorce property issues in Texas.

Pleading Sufficiency The appellate court found that Bernabe’s pleading was sufficient under Texas law. The court emphasized that pleadings should be construed liberally in favor of the plaintiff, and that a pleading need not cite specific statutes to be valid. Bernabe’s request for a declaration that the property was community property and for equal division provided sufficient notice of his claims under both the declaratory judgment statute and Texas Family Code Section 9.201, which allows former spouses to seek division of property not addressed in the final divorce decree.

Jurisdiction Over Out-of-State Property Martha’s argument that Texas courts lacked jurisdiction over Colorado property was also rejected. The court clarified an important distinction: while Texas courts cannot adjudicate title to land located outside the state, they can enforce personal obligations by ordering a party to convey out-of-state property. This is known as “in personam” jurisdiction over the person, rather than “in rem” jurisdiction over the property itself.

The court cited precedents showing that Texas courts have successfully ordered parties to execute documents necessary to transfer interests in properties located in Mexico and Florida. This principle ensures that Texas divorce courts can provide complete relief to parties, regardless of where their property is located.

Community Property Characterization Perhaps most importantly, the court addressed the characterization of the Colorado property. Under Texas Family Code Section 7.002 (the “quasi-community property statute”), Texas courts apply Texas community property law to out-of-state property acquired during marriage, regardless of how that property would be characterized under the laws of the state where it’s located.

This means that property acquired by either spouse during the marriage is community property if it “would have been community property had the acquiring spouse been domiciled in Texas at the time of acquisition.” Since Martha purchased the Colorado property during their marriage, it was community property under Texas law, despite Colorado not being a community property state.

Additional Legal Issues Addressed

Statute of Limitations Although Martha suggested in her motion that the lawsuit was filed too late (over 14 years after the divorce), she failed to properly preserve this argument. The court noted that even if properly raised, the statute of limitations would not bar Bernabe’s claim. Under Texas Family Code Section 9.202, the limitations period begins running when a former spouse “unequivocally repudiates the existence of the ownership interest of the other former spouse and communicates that repudiation.” Since Martha didn’t repudiate Bernabe’s interest until 2023, and he filed suit the same year, his claim was timely.

Res Judicata Martha also argued that res judicata (claim preclusion) barred Bernabe’s lawsuit because their divorce was finalized in 2009. However, this argument also failed because res judicata doesn’t apply to post-divorce division of property that was never adjudicated in the original divorce decree. The court emphasized that Texas law specifically provides procedures for dividing property that was not addressed in the final divorce decree, and these procedures would be meaningless if res judicata automatically barred such claims.

Implications for Dallas Divorce Cases

This case has significant implications for divorce cases in Dallas and throughout Texas. It demonstrates that:

  1. Informal agreements to divide property later are legally risky and may not be enforceable
  2. Out-of-state property acquired during marriage is still subject to Texas community property law
  3. Former spouses have legal remedies when property is overlooked or excluded from divorce decrees
  4. Texas courts can order parties to transfer out-of-state property even though they can’t directly adjudicate title to that property

Why You Need an Experienced Dallas Divorce Attorney

The Serna case illustrates why working with a knowledgeable dallas divorce lawyer consultation is crucial, both during your initial divorce proceedings and if issues arise afterward. Many potential problems can be prevented with proper legal guidance from the outset.

Identifying All Marital Property

One of the most important services a best divorce lawyer in dallas provides is ensuring that all marital property is identified and properly addressed in your divorce decree. This includes:

  1. Real estate in Texas and other states
  2. Business interests and professional practices
  3. Retirement accounts and investment portfolios
  4. Personal property including vehicles, jewelry, and collectibles
  5. Digital assets and cryptocurrency holdings

During my 25+ years of practice serving Dallas, Irving, Garland, Richardson, Mesquite, DeSoto, Grand Prairie, Lakewood, Highland Park, Forest Hills, White Rock, North Dallas, Farmers Branch, Cockrell Hill, Lancaster, Seagoville, and Duncanville, I’ve seen too many cases where important assets were overlooked, leading to expensive litigation years later.

Avoiding Dangerous Informal Agreements

The Serna case demonstrates the risks of informal agreements to “divide property later.” While these arrangements might seem reasonable during the emotional stress of divorce proceedings, they can create serious problems:

  • No legal enforcement mechanism if one party changes their mind
  • Difficulty proving the terms of oral agreements
  • Potential tax consequences that weren’t considered
  • Complications if property values change significantly over time

A qualified dallas family law attorney qualifications include the experience to identify these risks and structure property division in a way that protects your interests both immediately and in the future.

Post-Divorce Property Division Options in Texas

If you’re dealing with property that wasn’t addressed in your divorce decree, Texas law provides several potential remedies. Understanding these options is crucial for protecting your financial interests.

Texas Family Code Section 9.201

This statute allows either former spouse to file suit to divide property that wasn’t divided or awarded in the final divorce decree. Key requirements include:

  1. The property must not have been addressed in the original decree
  2. Either former spouse can initiate the proceedings
  3. The same court that granted the divorce typically has jurisdiction
  4. Community property principles apply to characterize the property

Declaratory Judgment Actions

In cases like Serna, seeking a declaratory judgment that property is community property can be an effective strategy. This approach allows you to:

  • Clarify ownership rights before attempting division
  • Establish the legal basis for your claim to the property
  • Create a record that can support enforcement actions

Constructive Trust and Fraud Claims

In some cases, additional claims may be appropriate, such as:

  • Constructive trust when one spouse wrongfully takes control of community property
  • Fraud on the community when a spouse conceals or misappropriates marital assets
  • Breach of fiduciary duty for violations of the duty spouses owe each other regarding community property

Understanding Texas Community Property Law

The Serna case reinforces important principles of Texas community property law that affect all divorcing couples in the Dallas area.

The Community Property Presumption

Under Texas law, property acquired during marriage is presumed to be community property unless proven otherwise. This presumption applies to:

  • Real estate purchases made during marriage
  • Income earned by either spouse during marriage
  • Investment gains on property acquired during marriage
  • Business interests developed during the marriage

Separate Property Exceptions

Property remains separate if it was:

  1. Owned before marriage
  2. Acquired by gift or inheritance during marriage
  3. Recoveries for personal injuries (with some exceptions)
  4. Property designated as separate in a valid marital property agreement

Tracing and Commingling Issues

One of the most complex aspects of property division involves tracing separate property and addressing commingling. An experienced best dallas child support lawyer and family law attorney can help you:

  • Trace separate property contributions to jointly-held assets
  • Calculate reimbursement claims for separate property used to improve community property
  • Document property characterization with proper evidence

Protecting Your Assets During Divorce

Learning from cases like Serna, there are several steps you can take to protect your interests during divorce proceedings.

Full Financial Disclosure

Working with a dallas child support attorney and divorce lawyer who emphasizes complete financial disclosure helps ensure:

  1. All assets are identified and properly valued
  2. Hidden assets are discovered through proper investigation
  3. Complex property interests are properly characterized
  4. Future disputes are minimized through comprehensive agreements

Comprehensive Property Division

Rather than leaving property division for later, address all assets in your decree:

  • Create detailed property schedules listing all assets and debts
  • Include specific transfer mechanisms for each asset
  • Address tax consequences of property transfers
  • Plan for future contingencies like business growth or property appreciation

Consider Future Implications

An experienced attorney helps you consider long-term implications:

  • Retirement planning and division of retirement assets
  • Tax consequences of different division strategies
  • Cash flow needs after divorce
  • Estate planning implications of property division

When to Seek Post-Divorce Property Division

If you’re in a situation similar to the Sernas, where property wasn’t addressed in your divorce decree, timing is important.

Statute of Limitations Considerations

As the Serna case demonstrates, you generally have time to pursue claims for undivided property, but the clock starts ticking when:

  • You discover previously unknown property
  • The other spouse repudiates your ownership interest
  • Circumstances change regarding informal agreements

Warning Signs to Act

Consider seeking legal advice if:

  1. Your ex-spouse is transferring property that should have been divided
  2. You discover assets that weren’t addressed in your divorce
  3. Property values have changed significantly since your divorce
  4. Your ex-spouse is refusing to honor informal agreements

Choosing the Right Dallas Divorce Attorney

The complexity of cases like Serna demonstrates why choosing the right legal representation is crucial for protecting your interests.

Experience with Complex Property Issues

Look for an attorney with demonstrated experience in:

  • High-asset divorce cases involving multiple properties
  • Out-of-state property division issues
  • Business valuation and division
  • Post-divorce enforcement actions

Transparent Communication

My approach emphasizes honest communication over empty reassurances. You deserve:

  • Realistic assessments of your case’s strengths and weaknesses
  • Clear explanations of legal options and likely outcomes
  • Transparent fee structures without hidden costs
  • Regular updates on case developments

Strategic but Compassionate Approach

Effective representation requires balancing compassion with strategic thinking:

  • Understanding the emotional impact of divorce while maintaining focus on legal objectives
  • Exploring settlement options while preparing for trial if necessary
  • Protecting your interests without unnecessarily escalating conflict
  • Focusing on long-term solutions rather than short-term victories

The Importance of Comprehensive Divorce Planning

The Serna case illustrates why comprehensive planning during your initial divorce is so important for avoiding future litigation.

Asset Investigation and Valuation

Thorough asset investigation includes:

  1. Real estate appraisals for all properties
  2. Business valuations for closely-held enterprises
  3. Retirement account statements and projections
  4. Personal property inventories and appraisals

Tax Planning Considerations

Property division decisions have long-term tax implications:

  • Capital gains on transferred property
  • Retirement account distribution rules
  • Dependency exemptions and tax benefits
  • Alimony taxation under current law

Estate Planning Integration

Your divorce decree should coordinate with estate planning:

  • Beneficiary designations on insurance and retirement accounts
  • Will and trust updates reflecting new circumstances
  • Powers of attorney and healthcare directives
  • Guardianship provisions for minor children

Take Action to Protect Your Rights

If you’re facing divorce or dealing with unresolved property issues from a previous divorce, don’t wait to seek qualified legal representation. The Serna case demonstrates that time-sensitive issues can significantly impact your rights and options.

Whether you’re in Dallas, Irving, Garland, Richardson, Mesquite, DeSoto, Grand Prairie, Lakewood, Highland Park, Forest Hills, White Rock, North Dallas, Farmers Branch, Cockrell Hill, Lancaster, Seagoville, or Duncanville, I’m here to provide the experienced guidance you need.

My practice focuses on providing personalized attention with over 25 years of experience in:

I believe in providing honest assessments based on facts, not false hope. My goal is to help you make informed decisions that protect your interests and those of your family.

Schedule Your Consultation Today

Don’t let unresolved property issues compromise your financial future. Contact my office today to schedule a consultation where we can:

  • Review your specific situation and identify potential claims
  • Explain your legal options in clear, understandable terms
  • Develop a strategy tailored to your goals and circumstances
  • Provide realistic assessments of likely outcomes and costs

Visit www.dallasdivorcelawyer.com or call to schedule your consultation. Time may be critical in protecting your rights, so don’t delay in seeking the experienced legal representation you deserve.

For more insights on family law matters, visit our blog where we regularly discuss important developments in Texas divorce and family law. When you’re ready to take the next step, I’m here to provide the skilled, compassionate representation that has helped countless Dallas-area families navigate these challenging situations successfully.

Michael Granata
Michael Granata

The Law Office of Michael P. Granata of Dallas, Texas, is a Dallas law office specializing in Dallas divorce, paternity and family law. As a Dallas divorce attorney I strive to timely resolve your case in a prompt and expeditious manner. Please click the link on “Our Practice Areas” page to learn about the different types of cases we handle.If you are seeking a Dallas divorce attorney who provides quality legal service and has a tradition of integrity and technical expertise then you have arrived at the right place. We handle all types of divorces from simple uncontested divorces to complex marital property cases, from simple visitation/possession issues to contested child custody proceedings. As a divorce attorney, Michael P. Granata will aggressively represent your interests to obtain any and all relief.