A Texas husband enters into a real estate contract to purchase an investment property using community funds, but he forges his wife's signature on the contract. The wife later discovers the transaction and objects. Under Texas community property law, what is the status of the contract?
Correct Answer
A) The contract may be voidable at the wife's election if the property constitutes joint management community property, and fraud on the community may provide additional remedies
Under Texas Family Code §3.102-3.104, community property subject to one spouse's sole management can be sold by that spouse alone. However, if the purchase involves joint management community property (which includes property acquired jointly), both spouses' consent is required. A forged signature is not valid consent. Additionally, under §3.402, a spouse may seek relief for fraud on the community estate. The wife may elect to avoid the contract and seek other remedies.
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Previous Question
A wife in Texas uses $50,000 of community funds and $50,000 from her separate savings to purchase a $100,000 vacant lot during marriage. Neither tracing documentation nor a partition agreement exists. Under Texas law, how is the property classified?
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Rachel receives a diamond ring as a birthday gift from her mother during her marriage to Paul. Under the Texas Family Code, how is the diamond ring classified?