This article was originally published in the September 2026 issue of the Dallas Bar Association’s Headnotes.
It was co-written by Elayna Naftis Erick and Cynthia Dooley.
You’ve finished your mediation. You know who is getting what and who is paying what.
You hammer out a decree that includes every deal point. Everyone signs it, and you get it entered. Job well done, right?
Actually, you’re not done. What about the closing documents? Without them, sooner or later, your client will wonder why her lawyer did not get the documents needed to establish her rights without depending on a title company to interpret the decree correctly or, even worse, asking her hostile ex-spouse to sign a quitclaim deed three years later.
The experienced attorneys at Brousseau Naftis Erick & Massingill, P.C. have represented clients in family law matters for decades. For more information, contact us today for a no-obligation consultation.
Example 1: Client is transferring her interest in the family home to her ex-husband (the “Ex”) for $300,000. Ex has agreed to list the house for sale within six months, and Client will be paid from the net sales proceeds. What documents need to be signed to make sure she gets what she bargained for at closing?
- A promissory note for $300,000 from Ex to Client.
- A special warranty deed with encumbrance conveying Client’s interest in the home to Ex.
- A deed of trust to secure owelty of partition, giving Client a way to foreclose on the home if Ex fails to pay her.
- A deed of trust to secure assumption, if Ex is also agreeing to pay an existing mortgage until the house sells.
Example 2: The family business is going to Ex. Client is concerned that Ex will run the business into the ground or, even worse, get into legal trouble down the line. What documents does Client need to be not just legally divorced from Ex, but also from the business?
- An assignment of Client’s interest in the business to Ex (signed by both parties) and, if the business is a corporation, make sure the stock ledger is updated, Client’s stock certificate is canceled, and a new stock certificate is issued to Ex for the transferred shares. The assignment should include Ex’s acceptance of the transferred interest and indemnification of Client as to all occurrences after the date of the assignment.
- Client’s written resignation from all officer and director positions she may hold.
Example 3: Ex is awarded several businesses he ran during the marriage. He will make monthly payments to Client to compensate her for her community interest. What documents does Client need to protect her income stream?
- A promissory note from Ex to Client.
- Documents transferring Client’s interest in the businesses to Ex, as described in Example 2.
- A security agreement granting a security interest in Ex’s membership interests, partnership interests, or stock shares to Client.
- A guaranty of Client’s note by each business, preferably accompanied by a security agreement that grants a security interest in the business’s assets to secure the guaranty. These may not be feasible unless Ex is the sole member, owner or shareholder.
Also, in every case in which business interests are transferred, it is crucial to review all company agreements, corporate bylaws, and shareholder or partnership agreements to ensure that the transfer and security documents are permitted and that all necessary consents are obtained.
Example 4: During their marriage, the parties formed a revocable trust whose sole asset is the marital residence. Client and Ex are co-trustees. In their divorce settlement, they agree that Client will be awarded the house, and the trust will be shut down. What documents are needed?
- A special warranty deed from Client and Ex, as co-trustees, transferring the house to Client.
- If the co-trustees are authorized by their trust document to act independently of each other, two more documents are prudent:
- A Certification of Terminated Trust, signed by Client and Ex as co-trustees and dated after the residence is transferred out of the trust and all trust debts are paid, reciting the history and stating that the trust will terminate the day after the Certification.
- A termination of the trust, signed by Client and Ex as co-trustees and dated to be effective the day after the Certification.
The language of closing documents can be as contentious as any other part of a decree, so the best practice is to attach the forms to the decree as exhibits. That way, the Court orders the parties to sign specific documents, eliminating all ambiguity. Have your client sign the closing documents when they sign the decree, then exchange the signed versions with opposing counsel after the decree is entered.
Forms for many common closing documents are included in chapter 24 of the Family Law Practice Manual published by the Family Law Section of the State Bar of Texas, and mediators’ settlement agreement forms often stipulate that the FLPM forms will be used in drafting the parties’ closing documents. However, if you need more finely tuned documents, consider asking a real estate, estate planning or corporate attorney to draft them properly.
