Adding Third-Parties into a Divorce Proceeding

When a marriage is being dissolved, there can be many emotions involved. A divorce proceeding can be complex enough, but when parties do not agree on one or more matters can turn a divorce into a contested legal proceeding. Whether the differences be on child custody, child support, spousal support, property, debt division, or any other issue, if there is not a complete agreement, a judge often has to resolve the dispute after a trial.

In many cases, some matters can become more complex. For example, third parties may need to be added to the divorce itself for jurisdictional purposes in some cases. In addition, third parties can hire legal counsel, call witnesses, and present evidence at trial. Thus, the dispute between the two parties to the marriage can become broader and complex.

 

A third party can be added to a divorce proceeding causing confusion and potential anxiety to the situation. But in some cases, the third parties have to be added to ensure the court has jurisdiction to address all relevant issues. Without their addition, the court may lack jurisdiction to address essential matters regarding property and debt division and child custody.

 

Below are some examples of times where third parties are necessary:

 

·       Third-Party Fathers: When children are born of the marriage or pregnancy, there is a presumption that the husband is the father of that child. However, in some cases, that is in the dispute or not true. It might be alleged that the wife had an extramarital affair and that another individual is the child’s father. In those cases, the child’s actual father will need to be added to the divorce if proven that the husband is not the father through a DNA test. By adding the natural father, the court can divorce the parties, find that the husband is not the father, and name the third party as the child's father for custody and support purposes.

 

·       Trust Assets: In some marriages, trust assets can come into dispute as to marital property and debt division. The exact type of trust can vary. However, many of these trusts can be irrevocable trusts where neither party to the divorce is a trustee. Yet, one party to the divorce argues that trust assets or income are marital property in some regard. When this is the case, the trustee often needs to be added as a third party to the divorce for matters relating to the trust in the divorce resolution.

 

·       Jointly Held Property: Parties who divorce can sometimes hold property jointly with other third parties who are not their spouse. For example, it could be real estate, vehicles, bank or investment accounts, and various assets. Sometimes, this is done innocently. But in other cases, the property is jointly held to shield it from the divorce court. When one spouse alleges that the jointly owned property is marital property, the third party who holds title to this property often needs to be added into the divorce as a third party. Otherwise, the court would have no jurisdiction to order this third property to do anything relative to this jointly held property.

 

 

 

·       Business Interests: If a business interest is at issue in a divorce, the business or corporation may need to be added to this litigation as well. Adding the company or corporation into the litigation as a third party gives the court jurisdiction over the entity. It also provides the entity with the ability to defend its interests. Adding a third-party entity into litigation is often more critical for other owners besides the divorcing parties.

 

Under Texas law, businesses may be joined as third parties to a Texas divorce when (1) they have received or transferred funds from the community estate or (2) when they assert a claim over allegedly community property. The first kind of business is necessary to afford complete relief between the parties, as they might possess community property to which the divorcing spouses are entitled. The second kind must be joined to adequately protect their interests in the disputed property.

 

The above examples are not all instances where a third party may need to be added to a divorce. But these are some of the more common examples.

 

In cases when a third party is joined, the third party generally has a right to file legal pleadings and motions to protect their interests. These third parties may also opt to issue discovery, take depositions, call and examine witnesses and president evidence at trial.  Thus, the addition of a third party can delay the divorce proceedings in certain respects. It might also make the litigation more complex and costly. At the same time, the addition of third parties is sometimes a necessity.

Having an attorney with the resources and knowledge to give you the best representation is vital to your interest and the interest of your family.  You also want to make sure they will exhaust all avenues and be willing to research, pursue and implement strategies to provide the best possible outcome.

Rob McAngus, Partner with Verner Brumley Parker, P.C., is Board Certified in family Law and his practice is devoted primarily to family law, including high conflict divorce, custody cases, and complex property issues. In addition to being selected on the Board of Directors for the Family Law Section of the Dallas Bar Association; he values your priorities as a parent and works with you to achieve the goals that will help transition your family to a new normal.  As both an adopted child and a member of a blended family, Rob can provide a unique perspective in the practice of family law.

Rob has been recognized in Super Lawyers as a Rising Star in 2016 through 2021, and recently The National Advocates recognized Rob as one of the Top 40 Under 40.  He can be reached by calling 214.526.5234 or email at rmcangus@vernerbrumley.com.  Mr. McAngus received his bachelor’s degree cum laude and master’s degree from Baylor University and graduated cum laude from the Dedman School of Law at Southern Methodist University.