Property Division Lessons from Recent Texas Court Case

Home/Blog/Property Division Lessons from Recent Texas Court Case
By Michael Granata on Jul 22, 2025

Posted in Industry News

Property Division Lessons from Recent Texas Court Case-image

 

Divorce is never easy, and the emotional toll can make it difficult to think clearly about the financial and legal implications of your decisions. When you’re going through one of the most challenging times in your life, the last thing you want is to discover that critical mistakes in property division have cost you thousands of dollars – or worse, your financial security.

A recent Texas Court of Appeals case, Matter of Marriage of Liardon (2025), provides a stark reminder of why having an experienced Dallas divorce attorney is essential when substantial assets are at stake. This case demonstrates how failing to properly document and trace separate property can result in losing assets you believed were rightfully yours.

If you’re facing divorce in Dallas, Irving, Garland, Richardson, Mesquite, DeSoto, Grand Prairie, or surrounding areas, understanding these property division principles could save you significant financial hardship down the road.

Table of Contents

Case Summary: When Property Documentation Failures Lead to Major Losses

In the Liardon case, Ronald Alfred Liardon learned an expensive lesson about Texas property laws when the Court of Appeals affirmed a trial court’s decision that cost him potentially hundreds of thousands of dollars in assets he claimed were his separate property.

Background of the Case

Ronald and Rebecca Liardon were married in 2006 and divorced in 2022 after 16 years of marriage. Rebecca filed for divorce seeking division of marital property and reimbursement for various financial contributions. The case centered around a substantial marital estate that included farming operations, cattle business interests, bank accounts, and various equipment and vehicles.

The Property Disputes

Ronald claimed that significant portions of the marital estate were actually his separate property, including:

  • Multiple bank accounts (National Life Group accounts, Sunflower Bank CD, money market account)
  • A farm checking account with balances exceeding $174,000
  • Farming operation equipment (planter, grain drill, combine, cotton stripper, John Deere tractor, dozer, shredder, plow, trailers)
  • Cattle operation assets including livestock and equipment
  • His alleged 50% partnership with his mother, Linda Liardon, in various business operations

Critical Legal Failures

The court found that Ronald failed to meet the legal burden required to prove separate property ownership. Under Texas Family Code Section 3.003(b), any party claiming separate property must prove that character by “clear and convincing evidence.” This is a high legal standard requiring evidence that would produce “a firm belief or conviction as to the truth of the allegations.”

Ronald’s testimony was deemed “cryptic” by the court, and his exhibits were “incomplete.” Specifically, he failed to:

  1. Provide adequate documentation for claimed separate property origins
  2. Trace assets back to their separate property sources
  3. Maintain clear records distinguishing separate from community funds
  4. Document business partnerships with his mother
  5. Overcome the legal presumption that property acquired during marriage is community property

Financial Consequences

Because Ronald could not prove the separate character of the disputed assets, the trial court treated everything as community property subject to division between the spouses. This meant Ronald lost his claims to:

  • Sole ownership of substantial bank accounts
  • Individual control over farming and cattle operation assets
  • Equipment and vehicles he maintained were purchased before marriage or with separate funds
  • His claimed partnership interest with his mother

The appellate court affirmed this decision, noting that “any doubt as to the character of property should be resolved in favor of the community estate.”

Key Legal Lessons

This case illustrates several critical principles for anyone going through divorce in Texas:

  1. Documentation is everything – Verbal testimony without supporting records is insufficient
  2. The burden of proof is high – “Clear and convincing evidence” requires substantial documentation
  3. Commingling destroys separate property claims – Mixing separate and community funds makes tracing nearly impossible
  4. Business ownership requires formal documentation – Informal partnerships or agreements won’t withstand legal scrutiny
  5. Timing matters – Attempting to establish separate property claims during divorce proceedings is often too late

Third-Party Property Claims

The court also rejected Ronald’s attempt to claim that his mother, Linda Liardon, owned portions of the disputed assets. The court noted that Linda was not a party to the divorce proceedings, and Ronald lacked standing to assert her property rights. This highlights the importance of ensuring all interested parties are properly included in divorce proceedings when complex business or family ownership structures exist.

This case serves as a cautionary tale for anyone entering divorce proceedings with significant assets, business interests, or complex financial arrangements. Proper legal representation and proactive asset documentation can mean the difference between protecting your financial future and losing assets you worked years to build.

Why Texas Property Division Laws Are Complex

Texas is a community property state, which means that most assets acquired during marriage belong equally to both spouses, regardless of whose name is on the title. However, the distinction between separate and community property can become incredibly complex, especially when you have:

  • Business interests that existed before marriage
  • Family partnerships or inherited assets
  • Commingled funds in bank accounts
  • Real estate purchased with mixed separate and community funds
  • Investment accounts that have grown over time

An experienced family law attorney serving Dallas understands these nuances and can help you navigate the complex documentation requirements necessary to protect your interests.

The High Cost of DIY Divorce When Assets Are Involved

Many people considering divorce wonder whether they really need an attorney, especially if they believe their situation is “straightforward.” The Liardon case demonstrates why this thinking can be financially devastating when significant assets are involved.

Common Mistakes That Lead to Asset Loss

1. Inadequate Record Keeping Most people don’t maintain the detailed financial records necessary to prove separate property claims. Bank statements, purchase receipts, inheritance documentation, and business formation papers may be scattered across years of files – or missing entirely.

2. Misunderstanding Legal Standards The “clear and convincing evidence” standard is much higher than most people realize. Simply knowing that an asset was separate property isn’t enough – you must be able to prove it convincingly in court.

3. Failing to Trace Assets Properly When separate property funds are mixed with community funds, the law requires detailed “tracing” to establish what portion remains separate. This complex financial analysis requires legal and often accounting expertise.

4. Incomplete Discovery Without proper legal representation, you may not identify all marital assets or understand their full value. A Dallas child support attorney can ensure that income from all sources is properly calculated and documented.

Red Flags: When You Definitely Need Professional Legal Help

While every divorce benefits from legal guidance, certain situations make professional representation absolutely essential:

High-Value Asset Situations

  • Business ownership or partnerships
  • Real estate investments
  • Retirement accounts exceeding $100,000
  • Investment portfolios
  • Valuable collections (art, antiques, etc.)
  • Professional practices or licenses

Complex Family Structures

  • Blended families with children from previous relationships
  • Multi-generational family businesses
  • Trust funds or inherited assets
  • International assets or income

High-Conflict Divorces

  • Domestic violence concerns
  • Substance abuse issues
  • Mental health challenges
  • Disputes over child custody arrangements
  • Hidden assets or financial dishonesty

A best divorce lawyer in Dallas with 25+ years of experience can identify these red flags early and develop strategies to protect your interests.

The Strategic Advantage of Experienced Divorce Representation

When you’re facing divorce with significant assets at stake, you need more than just legal advice – you need a strategic partner who understands both the emotional and financial complexities of your situation.

Comprehensive Asset Discovery

Professional divorce attorneys have tools and techniques that go far beyond what most people can accomplish on their own:

  • Formal discovery procedures to uncover hidden assets
  • Forensic accounting when financial irregularities are suspected
  • Business valuation experts for complex enterprises
  • Real estate appraisers for accurate property values
  • Retirement plan specialists for complex benefit calculations

Negotiation Expertise

Many divorce cases settle through negotiation rather than trial. An experienced Dallas divorce lawyer consultation can help you understand:

  • What constitutes a fair settlement offer
  • When to negotiate and when to stand firm
  • How to structure settlements for tax advantages
  • Creative solutions that benefit both parties

Trial Preparation and Advocacy

When settlement isn’t possible, you need an attorney who can effectively present your case in court. This requires:

  • Detailed knowledge of local judges and their preferences
  • Experience with complex property division cases
  • Ability to present financial evidence clearly and persuasively
  • Strategic thinking about trial timing and presentation

Protecting Your Financial Future During Divorce

Beyond just winning your case, a skilled divorce attorney helps you think strategically about your post-divorce financial position.

Tax Implications of Property Division

Different types of property settlements can have vastly different tax consequences:

  • Retirement Account Transfers: Require specific court orders (QDROs) to avoid tax penalties
  • Real Estate Transfers: May trigger capital gains taxes depending on timing and structure
  • Business Interest Valuations: Can affect ongoing tax obligations and business operations
  • Spousal Support: Has different tax implications for payer and recipient

A Dallas spousal support lawyer can help structure settlements that minimize your tax burden while achieving your financial goals.

Long-Term Financial Planning

Your divorce settlement will affect your financial situation for years to come. Key considerations include:

  • Retirement Planning: How will asset division affect your retirement timeline?
  • Insurance Needs: What coverage will you need post-divorce?
  • Estate Planning: How should your will and beneficiaries change?
  • Children’s Future Needs: College costs, medical expenses, and other long-term obligations

Special Considerations for High Net Worth Divorces

When substantial assets are involved, the stakes are higher and the legal strategies become more sophisticated. A Dallas high net worth divorce lawyer understands the unique challenges these cases present:

Complex Asset Valuation

  • Private business interests
  • Stock options and restricted securities
  • International investments
  • Intellectual property rights
  • Professional practices and goodwill

Privacy Protection

  • Keeping financial details confidential
  • Protecting business operations from disruption
  • Managing public relations concerns
  • Preventing disclosure of sensitive information

Multi-Jurisdictional Issues

  • Assets located in multiple states or countries
  • International custody considerations
  • Tax implications across jurisdictions
  • Enforcement of orders in different locations

Child Custody and Support Considerations

When children are involved, property division becomes even more complex because the court must consider their best interests alongside financial fairness.

Impact on Child Support Calculations

Texas child support is primarily based on the paying parent’s income, but property division can affect:

  • Future earning capacity
  • Available resources for child-related expenses
  • Standard of living considerations
  • Educational and healthcare planning

A child custody lawyer in Dallas can help ensure that property settlements support appropriate child support arrangements.

Custodial Considerations in Property Division

The court may consider custody arrangements when dividing property:

  • Primary Residence: Often awarded to the parent with primary custody
  • Educational Funds: May be allocated specifically for children’s future needs
  • Insurance Requirements: Ensuring adequate coverage for children’s needs
  • Geographic Stability: Avoiding property divisions that force unwanted relocations

When Mediation Makes Sense (And When It Doesn’t)

Many divorcing couples consider mediation as a less adversarial alternative to traditional litigation. While mediation can be effective in many situations, the Liardon case highlights when more formal legal proceedings may be necessary.

Good Candidates for Mediation

  • Both parties are willing to share financial information honestly
  • Asset values are relatively straightforward to determine
  • No significant disputes about property characterization
  • Both parties have legal representation
  • Reasonable people who can compromise

When Litigation May Be Necessary

  • Hidden assets or financial dishonesty
  • Complex business valuations required
  • Significant disputes about separate vs. community property
  • High-conflict situations with poor communication
  • Power imbalances between the parties

An uncontested divorce attorney in Dallas can help you determine whether your situation is appropriate for alternative dispute resolution or requires more formal proceedings.

Geographic Coverage: Serving the Greater Dallas Area

Divorce laws can vary significantly between jurisdictions, and local court practices can affect case outcomes. Our firm serves clients throughout the Dallas metroplex, including:

  • Dallas County: Dallas, Irving, Garland, Richardson, Mesquite, DeSoto, Grand Prairie
  • Surrounding Communities: Lakewood, Highland Park, Forest Hills, White Rock, North Dallas
  • Additional Areas: Farmers Branch, Cockrell Hill, Lancaster, Seagoville, Duncanville

Understanding local court procedures, judicial preferences, and filing requirements can provide significant advantages in your case.

Making the Right Choice for Your Future

Choosing the right legal representation may be one of the most important decisions you make during your divorce. Consider these factors:

Experience and Track Record

  • Years of practice in family law
  • Specific experience with cases similar to yours
  • Track record of successful outcomes
  • Professional recognition and peer ratings

Communication and Approach

  • Accessibility and responsiveness
  • Clear explanation of legal procedures and options
  • Empathetic but realistic assessment of your situation
  • Transparent pricing and fee structures

Resources and Support

  • Access to expert witnesses and specialists
  • Modern technology for case management
  • Support staff to handle administrative details
  • Network of professionals for related services

Frequently Asked Questions

How long does property division take in a Texas divorce?

The timeline for property division depends on the complexity of your assets and whether you can reach agreement through negotiation. Simple cases may resolve in 3-6 months, while complex cases involving business valuations or contested property claims can take 12-18 months or longer.

Can I protect assets I owned before marriage?

Yes, but you must be able to prove the separate character of those assets with clear and convincing evidence. This requires maintaining detailed records and avoiding commingling separate assets with community property.

What happens if my spouse hides assets during divorce?

Texas courts take asset concealment seriously. If hidden assets are discovered, the court may award the entire hidden asset to the innocent spouse as punishment. Forensic accounting can help uncover hidden assets.

How much does a Dallas divorce attorney cost?

Legal fees vary based on case complexity, but most divorce attorneys charge hourly rates ranging from $250-$500 per hour. Many offer initial consultations to discuss your specific situation and provide fee estimates.

Do I need an attorney for an uncontested divorce?

Even in uncontested divorces, having legal representation ensures that your rights are protected and all necessary paperwork is properly completed. The cost of legal advice is minimal compared to the potential cost of mistakes.

Can property division orders be modified after divorce?

Generally, property division orders are final and cannot be modified. This is why it’s crucial to get the division right the first time through proper legal representation.

What if my ex-spouse doesn’t comply with property division orders?

Non-compliance with court orders can result in contempt proceedings, wage garnishment, asset seizure, and other enforcement mechanisms. An attorney can help you enforce your rights.

How do you value a business in divorce?

Business valuation typically requires expert appraisers who consider factors like financial performance, market conditions, goodwill, and future earning potential. The valuation method can significantly affect the final value.

Take Action to Protect Your Financial Future

The Liardon case serves as a powerful reminder that divorce property division requires careful planning, thorough documentation, and experienced legal representation. Don’t let inadequate preparation cost you the assets you’ve worked years to build.

If you’re facing divorce in Dallas or surrounding areas, contact our experienced legal team for a confidential consultation. With over 25 years of experience handling complex property division cases, we provide the personalized attention and aggressive advocacy you need to protect your financial interests.

Our approach combines compassionate support during this difficult time with strategic legal thinking and tough courtroom advocacy when necessary. We understand that every case is unique, and we’ll work with you to develop a customized strategy that achieves your goals while protecting your family’s future.

Don’t navigate this complex legal landscape alone. Schedule your consultation today and take the first step toward securing your financial future. Our transparent pricing and commitment to client communication ensure you’ll always know where your case stands and what to expect next.

Remember: in divorce property division, what you don’t know can cost you dearly. Protect yourself with experienced legal representation that puts your interests first.


This article is for informational purposes only and does not constitute legal advice. Every divorce case is unique, and outcomes depend on specific facts and circumstances. Contact our Dallas divorce law firm for personalized legal guidance based on your situation.

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.