S.C., Petitioner, v. M.B., Individually and as Next Friend of I.C., Respondent
No. 20-0552
Supreme Court of Texas
June 17, 2022
Argued December 1, 2021
JUSTICE BLAND, joined by Justice Boyd and Justice Busby, dissenting.
Family Code Section 9.203(a) provides in plain terms that “the court” that rendered the parties’ divorce decree must resolve a claim asserting a post-divorce undivided community interest.1 Affixing jurisdiction in one court comes at the exclusion of others. In Section 9.203(a), the Legislature accorded appropriate finality to divorce decrees—the operative judgments that dissolve the marital estate. Such judgments are final, absent limited statutory exceptions. In affixing jurisdiction for adjudicating these exceptions, the Legislature sought to avoid the scattered and piecemeal post-divorce litigation of Texas marital-property rights the Court today creates.
Almost a century ago, our Court observed: “The courts are without authority to extend a statute vesting jurisdiction in a particular district court to all district courts of the state. To do so would be a clear invasion of the legislative prerogative.”2 Because the Court discards the Legislature‘s prerogative to confine collateral attacks against Texas final divorce decrees to the divorcing court in cases such as this one, I respectfully dissent.
I
The parties entered into an agreement incident to divorce and sought to dissolve their marital estate. To be effective, a district court must approve agreements incident to divorce, and it must conclude that the terms of such an agreement are “just and right.”3 The parties obtained approval of their agreement in the 324th District Court of Tarrant County, Texas, which also granted their divorce. In obtaining that approval, the parties “each acknowledge[d] that . . . they . . . fully underst[oo]d that the contents of [the]
Despite this finality language and the parties’ agreement, M.B. alleges that S.C. had acquired partnership interests that
M.B. filed this suit in a different Tarrant County district court—the 67th District—three years after the 324th District Court signed the final decree. Her claimed interest is her community interest in the parties’ former marital estate. That is, she asserts that her interest arises from the marital estate.
S.C. filed a jurisdictional plea, observing that Family Code Section 9.203(a) requires
Despite the explicit exclusion of family law cases from the statute that governs permissive appeals,5 the court of appeals nevertheless accepted the appeal and then reversed, holding that the divorcing court‘s jurisdiction to divide marital property in these circumstances is concurrent with that of any other district court.6 Chief Justice Sudderth dissented, observing that Section 9.203(a) requires the court that rendered the original divorce decree to adjudicate this claim.7
II
A
The Family Code is a comprehensive framework governing marriage, marital property, and the parent-child relationship.8 At the outset, the Code states a “General Rule of Property Division,” specific to marital property. The rule provides that a court “shall order a division” of the marital estate in a just and right manner:
In a decree of divorce or annulment, the court shall order a division of the estate of the parties in a manner that the court deems just and right, having due regard for the rights of each party and any children of the marriage.9
Post-divorce, any undivided community property that remains is “governed by [Chapter 9,] Subchapter C,” entitled “Post-Decree Division of Property.”10
Section 9.203(a) governs the post-divorce division claim in this case. Section 9.203(a) mandates that “the court” that “failed to dispose of property subject to division in a final decree” in the original divorce action “shall divide the property” in any subsequent action:
Division of Undivided Assets When Prior Court Had Jurisdiction. (a) If a court of this state failed to dispose of property subject to division in a final decree of divorce or annulment even though the court had jurisdiction over the spouses or over the property, the court shall divide the property in a manner that the court deems just and
right, having due regard for the rights of each party and any children of the marriage.11
“[T]he court shall divide” is mandatory both in directing the action to take and which court must take it. If “a court” fails to dispose of community property in a final decree of divorce, then “the court“—that is, the court that failed to dispose of the property—“shall divide the property in a manner that the court deems just and right . . . .”12 “The court” in the main clause of Section 9.203(a) refers to “a court” in the antecedent conditional clause, constraining jurisdiction to the district court that exercised it earlier in adjudicating the parties’ divorce.
Section 9.203 is a jurisdiction-affixing provision. We have held, and the Texas Constitution provides, that “[a] district court has subject-matter jurisdiction to resolve disputes unless the Legislature divests it of that jurisdiction.”13 If any district court can hear a post-divorce marital-property division claim, then the designation of a particular court to hear such a claim is completely unnecessary.14
Examining the subsection that follows, Section 9.203(b), supports this conclusion. Section 9.203(b) addresses undivided marital property when a court outside of Texas adjudicated the divorce. It provides that, if “a court in another state” fails to dispose of marital property upon divorce, then “a court of this state” shall apply the law of the first state in a claim for division of undivided marital property.15 In such a circumstance, the statute does not confine jurisdiction to a particular court, because the court that rendered the initial decree was not a Texas district court. In contrast, Subsection (a), which governs this suit, requires the Texas district court that rendered the divorce decree to handle a claim for undivided property.
Section 9.204(a) provides further context. Section 9.204(a) governs the outcome when “a court of this state” lacked jurisdiction over a spouse or the property, and thus failed to divide it, but then later acquired jurisdiction:
If a court of this state failed to dispose of property subject to division in a final decree of divorce or annulment because the court lacked jurisdiction over a spouse or the property, and if that court subsequently acquires the requisite jurisdiction, that court may divide the property in a manner that the court deems just and right . . . .16
In the absence of jurisdiction in the first instance, a court that later acquires it “may divide” marital property. In contrast, when a district court had jurisdiction and rendered the initial decree, as in Section 9.203(a), that court is the court that “shall divide” the property. Sections 9.204(a) and 9.203 use a similar formulation, with Section 9.204(a) clarifying that its further conditions apply to “that” court.
Read together, Sections 9.203 and 9.204 display the Family Code‘s preference for a comprehensive just and right division, instead of piecemeal adjudication of infinite
B
The Court instead holds that another provision of Subchapter C—Section 9.201(a)—grants concurrent jurisdiction to any district court. That provision says that “[e]ither former spouse may file a suit” seeking a post-divorce division of marital property.17 The “may” in Section 9.201(a) does not overcome the “shall” in Section 9.203. Section 9.201 creates a cause of action. The Legislature follows adoption of that cause with another statute, Section 9.203(a), which affixes jurisdiction in a particular court for claims that arise after an in-state final decree. The language in Section 9.203(a) is not permissive. It instructs that “the court” that rendered the initial decree “shall divide” any undivided marital property in a just and right manner.18 “Shall” is mandatory language.19 That Section 9.201(a) permits spouses to file suit says nothing about which court must adjudicate such a claim. Section 9.203(a) explicitly does.
Attempting to compare Section 9.203(a) with dissimilar Family Code provisions does not undo its jurisdictional command.20 No magic words are necessary to establish a jurisdictional boundary when the context plainly indicates that the statute creates one. Thus, “[a]lthough the statute authorizing the creation of [an administrative agency] does not contain the words ‘exclusive jurisdiction,’ as many statutes granting an administrative body exclusive jurisdiction do,” the Legislature can otherwise indicate that such jurisdiction is exclusive.21 True, some Family Code provisions provide for “continuing, exclusive” jurisdiction. Under Section 9.203(a), in contrast, the divorcing court‘s jurisdiction is not continuous—because court oversight was supposed to have been concluded after the initial divorce decree—but it nevertheless is exclusive. By providing a comprehensive framework for dividing the marital estate, including the particular court to decide this post-divorce action, the Family Code‘s intent is clear.
As a practical matter, the Court‘s approach does not accord proper finality to the parties’ final decree. The final decree dissolves the entire marital estate.22 As with other final judgments, a divorce decree
Like the common law before it, the Legislature in Chapter 9 permits an exception for claims seeking division of allegedly “undivided” property. As with Chapter 9‘s other exceptions, Section 9.203(a) is a legislatively endorsed exception to the finality of the final divorce decree. Once a former spouse brings a challenge within the proper time frame and establishes that an asset went undivided, that undivided property is subject to a just and right division as a part of the overall marital estate.25 That does not mean, however, that a former spouse may bring suit post-divorce alleging an undivided interest anytime, anywhere.
Such is the effect of the Court‘s ruling. In upholding the notion that later judgments from hither and yon may supplant—or at the very least, supplement—the original decree, the Court turns our jurisprudence favoring jurisdiction and disfavoring collateral attacks on its head.26
As our Court has recognized, the Legislature may vest exclusive jurisdiction in
C
The Property Code permits joint property owners to enlist a district court to divide their property.31 A Property Code partition accounts for rents and profits received, taxes paid, waste committed, or improvements made.32 It does not provide for a “just and right” division, as the Family Code mandates for the division of the marital estate.33 Accordingly, a partition does not consider the remaining marital estate, the agreement incident to divorce, or the distribution of the parties’ other assets.34 A “just and right” division allows courts to consider all of these factors, as
In divorce cases, an equal division of one marital asset is often not an equitable division in light of the overall division of the community estate. Our Court recognized this important distinction in Busby v. Busby, a suit for a post-decree division decided before the Legislature passed Section 9.203(a).36 In 1987, the Legislature addressed the potential inequity of a post-divorce partition by enacting then-Section 3.90 of the Family Code, titled “Procedure for Division of Certain Property not Divided on Divorce or Annulment.”37 Section 3.91(a) instructed “the court” that failed to divide marital property upon divorce that it “shall divide the property in a manner that the court deems just and right:”38
If a final decree of divorce or annulment rendered by a Texas court failed to dispose of property subject to division under Section 3.63 of this code even though the court had jurisdiction over the spouses or over the property, the court shall divide the property in a manner that the court deems just and right, having due regard for the rights of each party and any children of the marriage.39
Like its modern version, Section 3.91(a) charged the divorcing court with the duty to divide the property in the later suit as it should have done in the original divorce proceeding.
M.B. seeks a post-divorce Property Code partition of an allegedly undivided community interest. By enacting Subchapter C, however, the Legislature displaced the common law with a rule of just and right division for the entire community estate.40 We have never held that a post-divorce common law tenancy interest created by operation of law survives Subchapter C‘s enactment. In deciding today‘s jurisdictional question, however, the Court takes that as a given, relying on cases that predate Subchapter C or in which we declined to apply any remedy at all.41 Though
The Court answers that a party facing a claim for partition potentially could counterclaim for a just and right division, accepting the argument that the Property Code and the Family Code provide alternative options for dividing undivided marital property.44 This solution is not the one the statute provides. The Legislature offers multiple ways to assert a post-divorce community interest.45 The Court chooses to ignore them and to adopt its own.
The Court‘s solution is also not one that works. Even the Court concedes that material differences exist between the Family Code‘s statutory right to a just and right division and the Court‘s view of a common law property interest created by operation of law.46 These differences demonstrate the incompatibility of the Family Code with the Court‘s view, and the Court offers no clues as to how they may coexist.47 For example, the Legislature‘s two-year limitations period significantly differs from the Court‘s apparently nearly limitless availability of partition.48 We should not profess to know better than the Legislature what policy of finality should apply to post-divorce claims of undivided marital property.49
The proper method of dividing a leftover piece of marital property is what Section 9.203(a) commands: a just and right division in the court that rendered the final divorce decree.
III
With its decision, the Court undoes the Legislature‘s work. The Court‘s permissive choice between just and right division and partition provides an incentive for embittered parties to hide or neglect to discover community property, finalize the divorce, and then sue to partition that property in a court of the spouse‘s choice—a court without the benefit of first-hand knowledge of the circumstances of the divorce, with any division the court makes not subject to the rule of just and right division.52 Fixing jurisdiction with the court that decided the original decree prevents this kind of forum shopping when disputes as to the finality of a decree arise.
Divorced spouses are welcome to make contractual arrangements that are not incident to their divorce, for which other law governs. If a property right arises from something other than a community interest not divided in the final divorce decree, then the Family Code‘s mandated just and right division does not apply. But it is alleged here that the interests at issue arose by operation of law when a court dissolved the community estate upon the parties’ divorce, not as part of an independent agreement between the parties.
The Family Code affixes jurisdiction in the court best equipped to accomplish a just and right division of marital property that went undivided in the final decree. In contrast, this Court permits a suit to divide the property to be brought in a county far from the court that heard the divorce, possibly to one spouse‘s extreme
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Section 9.203(a) of the Family Code vests jurisdiction over suits asserting a post-divorce interest in marital property in the court that rendered the final decree. In so doing, the Legislature limited when and how a former spouse may pursue further division of the marital estate once the divorce is final. In keeping with the Legislature‘s prerogative to affix jurisdiction in a particular court, we should reverse the court of appeals’ judgment. Because we do not, I respectfully dissent.
Jane N. Bland
Justice
OPINION DELIVERED: June 17, 2022
