Texas 2009 - 81st Regular

Texas House Bill HB2565 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R7459 KSD-F
2	2	By: Frost H.B. No. 2565
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the rights and liabilities of the parties in a suit for
8	8	dissolution of a marriage and certain post-dissolution
9	9	proceedings.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 3.007(d), Family Code, is amended to
12	12	read as follows:
13	13	(d) A spouse who is a participant in an employer-provided
14	14	stock option plan or an employer-provided restricted stock plan has
15	15	a separate property interest in the options or restricted stock
16	16	granted to the spouse under the plan as follows:
17	17	(1) if the option or stock was granted to the spouse
18	18	before marriage but required continued employment during marriage
19	19	before the grant could be exercised or the restriction removed, the
20	20	spouse's separate property interest is equal to the fraction of the
21	21	option or restricted stock in which:
22	22	(A) the numerator is the period from the date the
23	23	option or stock was granted until the date of marriage and, if the
24	24	option or stock also required continued employment following the
25	25	date of dissolution of the marriage before the grant could be
26	26	exercised or the restriction removed, the period from the date of
27	27	dissolution of the marriage until the date the grant could be
28	28	exercised or the restriction removed; and
29	29	(B) the denominator is the period from the date
30	30	the option or stock was granted until the date the grant could be
31	31	exercised or the restriction removed; and
32	32	(2) if the option or stock was granted to the spouse
33	33	during the marriage but required continued employment following the
34	34	date of dissolution of the [after] marriage before the grant could
35	35	be exercised or the restriction removed, the spouse's separate
36	36	property interest is equal to the fraction of the option or
37	37	restricted stock in which:
38	38	(A) the numerator is the period from the date of
39	39	dissolution [or termination] of the marriage until the date the
40	40	grant could be exercised or the restriction removed; and
41	41	(B) the denominator is the period from the date
42	42	the option or stock was granted until the date the grant could be
43	43	exercised or the restriction removed.
44	44	SECTION 2. The heading to Subchapter E, Chapter 3, Family
45	45	Code, is amended to read as follows:
46	46	SUBCHAPTER E. CLAIMS FOR [ECONOMIC CONTRIBUTION AND] REIMBURSEMENT
47	47	SECTION 3. Section 3.402, Family Code, is amended to read as
48	48	follows:
49	49	Sec. 3.402. CLAIM FOR REIMBURSEMENT; OFFSETS [ECONOMIC
50	50	CONTRIBUTION]. (a) For purposes of this subchapter, a claim for
51	51	reimbursement includes only:
52	52	(1) payment by one marital estate of the unsecured
53	53	liabilities of another marital estate;
54	54	(2) inadequate compensation for the time, toil,
55	55	talent, and effort of a spouse by a business entity under the
56	56	control and direction of that spouse;
57	57	(3) ["economic contribution" is the dollar amount of:
58	58	[(1)] the reduction of the principal amount of a debt
59	59	secured by a lien on property owned before marriage, to the extent
60	60	the debt existed at the time of marriage;
61	61	(4) [(2)] the reduction of the principal amount of a
62	62	debt secured by a lien on property received by a spouse by gift,
63	63	devise, or descent during a marriage, to the extent the debt existed
64	64	at the time the property was received;
65	65	(5) [(3)] the reduction of the principal amount of
66	66	that part of a debt, including a home equity loan:
67	67	(A) incurred during a marriage;
68	68	(B) secured by a lien on property; and
69	69	(C) incurred for the acquisition of, or for
70	70	capital improvements to, property;
71	71	(6) [(4)] the reduction of the principal amount of
72	72	that part of a debt:
73	73	(A) incurred during a marriage;
74	74	(B) secured by a lien on property owned by a
75	75	spouse;
76	76	(C) for which the creditor agreed to look for
77	77	repayment solely to the separate marital estate of the spouse on
78	78	whose property the lien attached; and
79	79	(D) incurred for the acquisition of, or for
80	80	capital improvements to, property;
81	81	(7) [(5)] the refinancing of the principal amount
82	82	described by Subdivisions (3)-(6) [(1)-(4)], to the extent the
83	83	refinancing reduces that principal amount in a manner described by
84	84	the applicable [appropriate] subdivision; and
85	85	(8) [(6)] capital improvements to property other than
86	86	by incurring debt.
87	87	(b) The court shall resolve a claim for reimbursement by
88	88	using equitable principles, including the principle that claims for
89	89	reimbursement may be offset against each other if the court
90	90	determines it to be appropriate.
91	91	(c) Benefits for the use and enjoyment of property may be
92	92	offset against a claim for reimbursement for expenditures to
93	93	benefit a marital estate.
94	94	(d) Reimbursement for funds expended by a marital estate for
95	95	improvements to another marital estate shall be measured by the
96	96	enhancement in value to the benefited marital estate.
97	97	(e) The party seeking an offset to a claim for reimbursement
98	98	has the burden of proof with respect to the offset. ["Economic
99	99	contribution" does not include the dollar amount of:
100	100	[(1) expenditures for ordinary maintenance and repair
101	101	or for taxes, interest, or insurance; or
102	102	[(2) the contribution by a spouse of time, toil,
103	103	talent, or effort during the marriage.]
104	104	SECTION 4. Section 3.404(b), Family Code, is amended to
105	105	read as follows:
106	106	(b) A [The] claim for reimbursement [economic contribution
107	107	created] under this subchapter does not create an ownership
108	108	interest in property, but does create a claim against the property
109	109	of the benefited estate by the contributing estate. The claim
110	110	matures on dissolution of the marriage or the death of either
111	111	spouse.
112	112	SECTION 5. Sections 3.406(a) and (b), Family Code, are
113	113	amended to read as follows:
114	114	(a) On dissolution of a marriage, the court may [shall]
115	115	impose an equitable lien on the property of a benefited marital
116	116	estate to secure a claim for reimbursement against [economic
117	117	contribution in] that property by a contributing [another] marital
118	118	estate.
119	119	(b) On the death of a spouse, a court may [shall], on
120	120	application for a claim for reimbursement [of economic
121	121	contribution] brought by the surviving spouse, the personal
122	122	representative of the estate of the deceased spouse, or any other
123	123	person interested in the estate, as defined by Section 3, Texas
124	124	Probate Code, impose an equitable lien on the property of a
125	125	benefited marital estate to secure a claim for reimbursement
126	126	against that property [economic contribution] by a contributing
127	127	marital estate.
128	128	SECTION 6. Section 7.007, Family Code, is amended to read as
129	129	follows:
130	130	Sec. 7.007. DISPOSITION OF CLAIM FOR [ECONOMIC CONTRIBUTION
131	131	OR CLAIM FOR] REIMBURSEMENT. [(a) In a decree of divorce or
132	132	annulment, the court shall determine the rights of both spouses in a
133	133	claim for economic contribution as provided by Subchapter E,
134	134	Chapter 3, and in a manner that the court considers just and right,
135	135	having due regard for the rights of each party and any children of
136	136	the marriage, shall:
137	137	[(1) order a division of a claim for economic
138	138	contribution of the community marital estate to the separate
139	139	marital estate of one of the spouses;
140	140	[(2) order that a claim for an economic contribution
141	141	by one separate marital estate of a spouse to the community marital
142	142	estate of the spouses be awarded to the owner of the contributing
143	143	separate marital estate; and
144	144	[(3) order that a claim for economic contribution of
145	145	one separate marital estate in the separate marital estate of the
146	146	other spouse be awarded to the owner of the contributing marital
147	147	estate.
148	148	[(b)] In a decree of divorce or annulment, the court shall
149	149	determine the rights of both spouses in a claim for reimbursement as
150	150	provided by Subchapter E, Chapter 3, and shall apply equitable
151	151	principles to:
152	152	(1) determine whether to recognize the claim after
153	153	taking into account all the relative circumstances of the spouses;
154	154	and
155	155	(2) order a division of the claim for reimbursement,
156	156	if appropriate, in a manner that the court considers just and right,
157	157	having due regard for the rights of each party and any children of
158	158	the marriage.
159	159	SECTION 7. Section 9.014, Family Code, is amended to read as
160	160	follows:
161	161	Sec. 9.014. ATTORNEY'S FEES. The court may award
162	162	reasonable attorney's fees [as costs] in a proceeding under this
163	163	subchapter. The court may order the attorney's fees to be paid
164	164	directly to the attorney, who may enforce the order for fees in the
165	165	attorney's own name by any means available for the enforcement of a
166	166	judgment for debt.
167	167	SECTION 8. Subchapter B, Chapter 9, Family Code, is amended
168	168	by adding Section 9.106 to read as follows:
169	169	Sec. 9.106. ATTORNEY'S FEES. In a proceeding under this
170	170	subchapter, the court may award reasonable attorney's fees incurred
171	171	by a party to a divorce or annulment against the other party to the
172	172	divorce or annulment. The court may order the attorney's fees to be
173	173	paid directly to the attorney, who may enforce the order for fees in
174	174	the attorney's own name by any means available for the enforcement
175	175	of a judgment for debt.
176	176	SECTION 9. Section 9.205, Family Code, is amended to read as
177	177	follows:
178	178	Sec. 9.205. ATTORNEY'S FEES. In a proceeding to divide
179	179	property previously undivided in a decree of divorce or annulment
180	180	as provided by this subchapter, the court may award reasonable
181	181	attorney's fees [as costs]. The court may order the attorney's fees
182	182	to be paid directly to the attorney, who may enforce the order in
183	183	the attorney's own name by any means available for the enforcement
184	184	of a judgment for debt.
185	185	SECTION 10. The following laws are repealed:
186	186	(1) Sections 3.007(a), (b), and (f), Family Code;
187	187	(2) Sections 3.401(1), (2), and (3), Family Code; and
188	188	(3) Sections 3.403, 3.406(c), 3.407, 3.408, and 3.410,
189	189	Family Code.
190	190	SECTION 11. The changes in law made by this Act to Section
191	191	3.007, Family Code, apply to:
192	192	(1) a suit for dissolution of a marriage pending
193	193	before a trial court on or filed on or after the effective date of
194	194	this Act; and
195	195	(2) the estate of a person who dies on or after the
196	196	effective date of this Act.
197	197	SECTION 12. (a) In regard to a claim under Subchapter E,
198	198	Chapter 3, Family Code, that arises from a suit for dissolution of a
199	199	marriage, the changes in law made by this Act to that subchapter
200	200	apply only to a claim made in a suit filed on or after the effective
201	201	date of this Act. A claim made in a suit filed before the effective
202	202	date of this Act is governed by the law in effect on the date the
203	203	suit was filed, and the former law is continued in effect for that
204	204	purpose.
205	205	(b) In regard to a claim under Subchapter E, Chapter 3,
206	206	Family Code, that arises from the death of a spouse, the changes in
207	207	law made by this Act to that subchapter apply only to a claim
208	208	arising from a death that occurs on or after the effective date of
209	209	this Act. A claim arising from a death that occurs before the
210	210	effective date of this Act is governed by the law in effect on the
211	211	date of death, and the former law is continued in effect for that
212	212	purpose.
213	213	SECTION 13. The changes in law made by this Act to Chapter
214	214	9, Family Code, apply only to a proceeding commenced under that
215	215	chapter on or after the effective date of this Act. A proceeding
216	216	commenced under Chapter 9, Family Code, before the effective date
217	217	of this Act is governed by the law in effect immediately before that
218	218	date, and the former law is continued in effect for that purpose.
219	219	SECTION 14. This Act takes effect September 1, 2009.