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in the Matter of the Marriage of Stephanie Gwinn Armstrong and Ronald Dean Armstrong
12-15-00300-CV
| Tex. App. | Jul 31, 2017
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Background

  • Ronald and Stephanie Armstrong married in 1993 and later divorced after both filed petitions alleging cruelty and adultery and seeking disproportionate community-property shares.
  • The trial court awarded Ronald the business entity Warehouse Hardware Enterprises, LLC (including inventory, receivables, cash) as his separate property.
  • The trial court awarded Stephanie “The Warehouse real estate and the Watkins interest contiguous thereto” as her separate property, described in an exhibit.
  • Evidence showed Ronald and Dotie Adams (Stephanie’s mother) purchased the Warehouse Property on Sept. 27, 2010; Dotie paid the $30,000 purchase price and both names appear on the general warranty deed.
  • Trial testimony and inventories indicated Ronald and Stephanie each claimed a one-half interest in the Warehouse Property; there was no documentary evidence that Ronald deeded the Warehouse Property to his LLC or that a partnership existed between Ronald and Dotie.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the trial court erred by awarding the Warehouse real estate to Stephanie Stephanie argued the property was part of the marital estate and the court could divide it Ronald argued the Warehouse Property belonged to his LLC or was held in a partnership with Dotie and thus not divisible community property Court held the Warehouse Property was part of the marital estate (each spouse one-half); no evidence it was deeded to the LLC or that a partnership existed; modified decree to award Stephanie only the marital estate’s one-half interest

Key Cases Cited

  • Moroch v. Collins, 174 S.W.3d 849 (Tex. App.—Dallas 2005) (standard for abuse of discretion in property division)
  • Garza v. Garza, 217 S.W.3d 538 (Tex. App.—San Antonio 2006) (supporting evidence required for property-division review)
  • Henry v. Henry, 48 S.W.3d 468 (Tex. App.—Houston [14th Dist.] 2001) (reversal only when error materially affects just-and-right division)
  • Sheshtawy v. Sheshtawy, 150 S.W.3d 772 (Tex. App.—San Antonio 2004) (reversible error requires remand of entire community estate division)
  • Jacobs v. Jacobs, 687 S.W.2d 731 (Tex. 1985) (principle on remand for new division when necessary)
  • Sink v. Sink, 364 S.W.3d 340 (Tex. App.—Dallas 2012) (presumption and burden rules for community vs. separate property)
  • Ben Fitzgerald Realty Co. v. Muller, 846 S.W.2d 110 (Tex. App.—Tyler 1993) (partnership existence primarily a fact question)
  • Ingram v. Deere, 288 S.W.3d 886 (Tex. 2009) (consideration of partnership factors under totality of circumstances)
  • Mullins v. Mullins, 202 S.W.3d 869 (Tex. App.—Dallas 2006) (appellate court may modify judgment when information is available)
Read the full case

Case Details

Case Name: in the Matter of the Marriage of Stephanie Gwinn Armstrong and Ronald Dean Armstrong
Court Name: Court of Appeals of Texas
Date Published: Jul 31, 2017
Docket Number: 12-15-00300-CV
Court Abbreviation: Tex. App.