Complex Asset Division and Child Support in High-Net-Worth Divorces: Key Insights from Texas Appeals Court

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By Michael Granata on Aug 07, 2025

Posted in Industry News

Complex Asset Division and Child Support in High-Net-Worth Divorces: Key Insights from Texas Appeals Court-image

Divorce is never easy, but when significant assets, business interests, and children are involved, the legal complexities can feel overwhelming. If you’re facing a high-net-worth divorce in Dallas, Texas, understanding how courts handle complex property division and child support determinations is crucial for protecting your future and your children’s well-being.

A recent Texas Court of Appeals decision in Brenner v. Brenner provides valuable insights into how courts approach these challenging cases. As an experienced Dallas divorce attorney with over 25 years of practice, I want to share the key lessons from this case to help you understand what to expect in your own divorce proceedings.

Understanding Complex Asset Division in Texas Divorces

The Brenner Case: A Comprehensive Overview

The Brenner v. Brenner case, decided by the Texas Court of Appeals in Austin on July 25, 2025, illustrates the intricate legal issues that arise when divorcing couples have substantial business interests and complex financial arrangements. This case involved Dr. Andrew Jacob Brenner, an oncologist, and his wife Tiffany Nicole Brenner, who discovered Andrew’s adultery and filed for divorce in June 2021.

Background of the Case

During their marriage, Andrew worked as an oncologist while Tiffany remained home to care for their two minor children, ages 11 and 8 at the time of trial. The complexity of their case stemmed from Andrew’s involvement in developing a groundbreaking drug treatment for breast cancer patients. Andrew had helped create a corporation called NanoTx, which owned the patent rights to this innovative drug treatment.

The financial complexity arose from Andrew’s 30.33% ownership stake in NanoTx, which he acquired using community funds during the marriage. This stock ownership became the centerpiece of the property division dispute, as NanoTx had entered into a Patent and Know-How License Agreement with Plus Therapeutics, Inc. Under this agreement, NanoTx licensed certain rights to the drug for development, manufacturing, and commercialization, with Plus owing NanoTx milestone payments as the drug progressed through various development phases.

The Court’s Property Division Decision

The trial court awarded Tiffany a disproportionate 60% beneficial ownership interest in the NanoTx stock, while Andrew received 40%. This unequal division was justified by the court’s finding of adultery, which under Texas law can support a disproportionate division of community property. More importantly, the court imposed a constructive trust on all future payments from NanoTx to Andrew as a stockholder.

This constructive trust mechanism ensured that when NanoTx makes distributions or pays dividends to its shareholders, Andrew would receive his 40% share while automatically transferring Tiffany’s 60% portion to an account she designated. The trust covered “all dividend income, distributions, proceeds, profits, revenues, commissions, and shares of stock distributed by NanoTx.”

Andrew’s Challenge to the Property Characterization

On appeal, Andrew argued that future milestone payments should be characterized as his separate property rather than community property, contending that his post-divorce labor would be essential to achieving these milestones. He testified that completing all milestones would take 10 to 15 years and that his continued employment was crucial to fulfilling NanoTx’s obligations under the licensing agreement.

Andrew’s legal theory was that any future payments should be prorated based on the time the parties were married compared to the time he would work post-divorce to earn those payments. However, the appellate court firmly rejected this argument.

Why the Court Rejected Andrew’s Separate Property Claim

The Court of Appeals affirmed the trial court’s decision for several compelling reasons:

  1. Stock Ownership Foundation: The court emphasized that Andrew would receive any milestone-related payments only through his stock ownership in NanoTx, not as compensation for his labor. Since the stock itself was undisputedly community property acquired with community funds during marriage, any dividends or distributions from that stock remained community property.
  2. No Direct Payment Structure: The court noted that there was no evidence showing any method for milestone payments to reach Andrew except through NanoTx’s distribution of dividends to all shareholders based on their ownership percentages.
  3. Credibility Issues: The trial court found Andrew’s testimony about the necessity of his future labor to be not credible, and the appellate court could not disturb this credibility determination.
  4. Legal Precedent: The court cited established Texas law that “cash dividends on separately held stock are community property,” and reasoned that dividends on community-held stock are even more clearly community property.

Key Lessons for High-Net-Worth Divorces

This case demonstrates several critical principles that affect complex asset division in Texas divorces:

Community vs. Separate Property: Any asset acquired during marriage with community funds remains community property, regardless of future efforts by one spouse to increase its value. If you’re facing a high-net-worth divorce in Dallas, understanding these characterizations is essential.

Future Income Streams: Courts will carefully examine the source of future payments. If they flow from community property investments, they typically remain subject to community property division regardless of one spouse’s future efforts.

Constructive Trusts: When one spouse holds title to community property assets, courts can impose constructive trusts to ensure the other spouse receives their rightful share of future benefits from those assets.

Child Support in High-Asset Cases: Above-Guidelines Awards

The Child Support Dispute

The second major issue in Brenner involved child support calculations. Under Texas guidelines, Andrew would have owed $2,300 per month in child support. However, Tiffany presented evidence that the children’s actual needs required $6,709 per month. She requested $5,000 monthly, which the trial court awarded.

Evidence Supporting Above-Guidelines Support

Tiffany’s evidence of the children’s needs was comprehensive and included:

Housing Costs: Monthly expenses for mortgage or rent payments and utilities for the home where the children lived with her.

Educational Expenses: Math tutoring, school tuition, and school supplies.

Healthcare: Medical, dental, orthodontic, and mental health treatments.

Transportation: Car payments, gasoline, maintenance, insurance, and vehicle registration.

Daily Living: Food, meals away from home, clothing, and personal care including haircuts.

Extracurricular Activities: Sports, hobbies, and other enrichment activities.

Home Maintenance: Property taxes, HOA dues, home maintenance, yard care, home security, and homeowner’s insurance.

Technology and Communication: Cable television, internet, and newspaper subscriptions.

Personal Development: Entertainment, allowances, and birthday and holiday gifts.

Pet Care: Expenses for family pets that benefit the children.

Legal Standards for Above-Guidelines Support

Texas Family Code allows courts to award child support above statutory guidelines when there is evidence of “proven needs of the child.” The Brenner court emphasized several key principles:

Broad Judicial Discretion: Trial courts have wide latitude in determining children’s needs, guided by the paramount principle of the best interests of the child.

Non-Divisible Expenses: Evidence can include expenses that benefit both children and adults, such as mortgage payments on the family home. Courts can make reasonable allocations of these shared expenses.

Future Projections: Parents can testify about estimates and projections of future expenses and needs, which are considered as relevant as past and current expenses.

Credibility Determinations: Trial courts, as factfinders, are the sole judges of witness credibility and can accept or reject testimony accordingly.

Andrew’s Failed Challenge

Andrew appealed the above-guidelines award, arguing there was insufficient evidence of the children’s proven needs. However, the appellate court found Tiffany’s testimony and supporting exhibit constituted legally sufficient evidence to support the award.

The court noted that Andrew only pointed to Tiffany’s receipt of over $340,000 from the marital home sale as contrary evidence, but since the divorce decree wasn’t part of the trial evidence, this argument failed.

Practical Implications for Dallas-Area Divorces

For High-Net-Worth Individuals

If you’re a business owner or professional in Dallas, Irving, Richardson, or surrounding areas facing divorce, this case highlights the importance of:

Early Legal Consultation: Complex asset characterization issues require immediate attention. Don’t wait to consult with an experienced family law attorney serving Dallas who understands business valuations and property division.

Comprehensive Financial Documentation: Courts need detailed evidence about asset acquisition, funding sources, and operational structures. Your Dallas divorce lawyer should work with qualified forensic accountants and business valuators.

Realistic Expectations: Even substantial post-divorce contributions to business success may not change community property characterizations established at the time of asset acquisition.

For Parents Seeking Child Support

Whether you’re in Highland Park, Lakewood, or any Dallas-area community, this case shows that:

Detailed Documentation Matters: Keep thorough records of all child-related expenses, including those that might seem indirect like housing costs or family entertainment.

Professional Guidance is Essential: An experienced Dallas child support attorney can help present evidence effectively and argue for above-guidelines support when justified.

Future Planning is Acceptable: Courts recognize that children’s needs include reasonable projections of future expenses, not just current costs.

Why Choose Experienced Legal Representation

As a Dallas divorce attorney with over 25 years of experience, I understand that cases like Brenner demonstrate why skilled legal representation is crucial in complex divorce proceedings. My approach combines compassionate guidance with strategic advocacy, ensuring clients receive honest assessments rather than false reassurances.

My Commitment to Clients

Transparent Communication: I believe in providing clear, honest evaluations of your case prospects rather than making promises I cannot keep. You deserve to make informed decisions based on realistic assessments of likely outcomes.

Comprehensive Case Preparation: Complex cases require meticulous preparation. I work with qualified experts in business valuation, forensic accounting, and child development to build compelling cases.

Strategic Advocacy: While I always explore settlement opportunities, I’m prepared to litigate aggressively when necessary to protect my clients’ interests and their children’s welfare.

Personalized Attention: Every case is unique. I take time to understand your specific situation, goals, and concerns to develop customized legal strategies.

Areas of Practice

My practice focuses on all aspects of family law, including:

Frequently Asked Questions

How does Texas law determine what constitutes community vs. separate property?

Under Texas Family Code, community property includes all assets acquired by either spouse during marriage, except for gifts, inheritance, or property owned before marriage. The key factor is when and how the asset was acquired, not who holds title or who contributed more effort to its success.

Can future business success change property characterization in divorce?

Generally, no. If a business interest was acquired during marriage with community funds, it remains community property regardless of one spouse’s future efforts to increase its value. However, specific circumstances may affect the division percentage or create separate property interests in future growth.

What evidence is needed to support above-guidelines child support?

Texas courts require evidence of children’s “proven needs.” This can include housing costs, educational expenses, healthcare, extracurricular activities, and reasonable projections of future needs. The evidence must be substantive and probative, but doesn’t need to separate every expense between children and adults.

How do constructive trusts work in divorce cases?

A constructive trust is a legal remedy that requires one party to hold property for another’s benefit. In divorce cases, courts use constructive trusts when one spouse holds title to community property assets, ensuring the other spouse receives their rightful share of future benefits from those assets.

Should I accept the statutory child support guidelines amount?

Not necessarily. If your children have demonstrated needs above the guidelines amount – common in higher-income families – you may be entitled to additional support. An experienced child support lawyer in Dallas can evaluate whether above-guidelines support is appropriate in your case.

How long do constructive trusts last after divorce?

Constructive trusts typically continue until the underlying asset is sold or distributed, or until modified by court order. In cases involving ongoing business interests, like the NanoTx stock in Brenner, the trust may continue for many years to ensure proper distribution of future dividends or distributions.

What makes a high-net-worth divorce different from other divorces?

High-net-worth divorces typically involve complex asset valuation, business interests, stock options, retirement benefits, and multiple income streams. These cases require specialized expertise in forensic accounting, business valuation, and sophisticated legal strategies to protect substantial assets and income streams.

Can I modify child support if my financial situation changes?

Yes, Texas law allows child support modifications when there has been a material and substantial change in circumstances affecting either parent’s financial situation or the children’s needs. However, the legal standard is strict, and professional legal guidance is essential for successful modifications.

Taking the Next Step

If you’re facing a complex divorce involving business interests, substantial assets, or challenging child support issues, don’t navigate these waters alone. The Brenner case demonstrates how critical it is to have experienced legal counsel who understands both the law and the practical realities of high-stakes family law disputes.

As your Dallas family law attorney, I’m committed to providing the honest guidance and strategic advocacy you need during this challenging time. Whether you’re in Dallas proper, or surrounding communities like Garland, Mesquite, DeSoto, Grand Prairie, Forest Hills, White Rock, North Dallas, Farmers Branch, Cockrell Hill, Lancaster, Seagoville, or Duncanville, I’m here to help.

Don’t let uncertainty about complex legal issues prevent you from protecting your interests and your children’s future. Contact my office today for a consultation to discuss your specific situation. Together, we can develop a strategy that addresses your unique circumstances while keeping your family’s best interests at the forefront.

Remember, in high-stakes divorce proceedings, the decisions made today will impact your family’s future for years to come. Make sure you have the experienced, dedicated advocacy you deserve. Visit our blog for more insights into Texas family law, or learn more about my qualifications and approach to family law practice.

Your future is too important to leave to chance. Let’s discuss how I can help you navigate this challenging chapter and emerge with the foundation for a brighter tomorrow.

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.