81R4251 KSD-F
By: Frost H.B. No. 2566
A BILL TO BE ENTITLED
AN ACT
relating to the rights of spouses and claims for reimbursement in
relation to separate and community property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter E, Chapter 3, Family
Code, is amended to read as follows:
SUBCHAPTER E. CLAIMS FOR [ECONOMIC CONTRIBUTION AND] REIMBURSEMENT
SECTION 2. Section 3.402, Family Code, is amended to read as
follows:
Sec. 3.402. CLAIM FOR REIMBURSEMENT; OFFSETS [ECONOMIC
CONTRIBUTION]. (a) For purposes of this subchapter, a claim for
reimbursement includes only:
(1) payment by one marital estate of the unsecured
liabilities of another marital estate;
(2) inadequate compensation for the time, toil,
talent, and effort of a spouse by a business entity under the
control and direction of that spouse;
(3) ["economic contribution" is the dollar amount of:
[(1)] the reduction of the principal amount of a debt
secured by a lien on property owned before marriage, to the extent
the debt existed at the time of marriage;
(4) [(2)] the reduction of the principal amount of a
debt secured by a lien on property received by a spouse by gift,
devise, or descent during a marriage, to the extent the debt existed
at the time the property was received;
(5) [(3)] the reduction of the principal amount of
that part of a debt, including a home equity loan:
(A) incurred during a marriage;
(B) secured by a lien on property; and
(C) incurred for the acquisition of, or for
capital improvements to, property;
(6) [(4)] the reduction of the principal amount of
that part of a debt:
(A) incurred during a marriage;
(B) secured by a lien on property owned by a
spouse;
(C) for which the creditor agreed to look for
repayment solely to the separate marital estate of the spouse on
whose property the lien attached; and
(D) incurred for the acquisition of, or for
capital improvements to, property;
(7) [(5)] the refinancing of the principal amount
described by Subdivisions (3)-(6) [(1)-(4)], to the extent the
refinancing reduces that principal amount in a manner described by
the applicable [appropriate] subdivision; and
(8) [(6)] capital improvements to property other than
by incurring debt.
(b) The court shall resolve a claim for reimbursement by
using equitable principles, including the principle that claims for
reimbursement may be offset against each other if the court
determines it to be appropriate.
(c) Benefits for the use and enjoyment of property may be
offset against a claim for reimbursement for expenditures to
benefit a marital estate.
(d) Reimbursement for funds expended by a marital estate for
improvements to another marital estate shall be measured by the
enhancement in value to the benefited marital estate.
(e) The party seeking an offset to a claim for reimbursement
has the burden of proof with respect to the offset ["Economic
contribution" does not include the dollar amount of:
[(1) expenditures for ordinary maintenance and repair
or for taxes, interest, or insurance; or
[(2) the contribution by a spouse of time, toil,
talent, or effort during the marriage].
SECTION 3. Section 3.404(b), Family Code, is amended to
read as follows:
(b) A [The] claim for reimbursement [economic contribution
created] under this subchapter does not create an ownership
interest in property, but does create a claim against the property
of the benefited estate by the contributing estate. The claim
matures on dissolution of the marriage or the death of either
spouse.
SECTION 4. Sections 3.406(a) and (b), Family Code, are
amended to read as follows:
(a) On dissolution of a marriage, the court may [shall]
impose an equitable lien on the property of a benefited marital
estate to secure a claim for reimbursement against [economic
contribution in] that property by a contributing [another] marital
estate.
(b) On the death of a spouse, a court may [shall], on
application for a claim for reimbursement [of economic
contribution] brought by the surviving spouse, the personal
representative of the estate of the deceased spouse, or any other
person interested in the estate, as defined by Section 3, Texas
Probate Code, impose an equitable lien on the property of a
benefited marital estate to secure a claim for reimbursement
against that property [economic contribution] by a contributing
marital estate.
SECTION 5. Section 7.007, Family Code, is amended to read as
follows:
Sec. 7.007. DISPOSITION OF CLAIM FOR [ECONOMIC CONTRIBUTION
OR CLAIM FOR] REIMBURSEMENT. [(a) In a decree of divorce or
annulment, the court shall determine the rights of both spouses in a
claim for economic contribution as provided by Subchapter E,
Chapter 3, and in a manner that the court considers just and right,
having due regard for the rights of each party and any children of
the marriage, shall:
[(1) order a division of a claim for economic
contribution of the community marital estate to the separate
marital estate of one of the spouses;
[(2) order that a claim for an economic contribution
by one separate marital estate of a spouse to the community marital
estate of the spouses be awarded to the owner of the contributing
separate marital estate; and
[(3) order that a claim for economic contribution of
one separate marital estate in the separate marital estate of the
other spouse be awarded to the owner of the contributing marital
estate.
[(b)] In a decree of divorce or annulment, the court shall
determine the rights of both spouses in a claim for reimbursement as
provided by Subchapter E, Chapter 3, and shall apply equitable
principles to:
(1) determine whether to recognize the claim after
taking into account all the relative circumstances of the spouses;
and
(2) order a division of the claim for reimbursement,
if appropriate, in a manner that the court considers just and right,
having due regard for the rights of each party and any children of
the marriage.
SECTION 6. The following laws are repealed:
(1) Sections 3.401(1), (2), and (3), Family Code; and
(2) Sections 3.403, 3.406(c), 3.407, 3.408, and 3.410,
Family Code.
SECTION 7. (a) In regard to a claim under Subchapter E,
Chapter 3, Family Code, that arises from a suit for dissolution of a
marriage, the changes in law made by this Act apply only to a claim
made in a suit filed on or after the effective date of this Act. A
claim made in a suit filed before the effective date of this Act is
governed by the law in effect on the date the suit was filed, and the
former law is continued in effect for that purpose.
(b) In regard to a claim under Subchapter E, Chapter 3,
Family Code, that arises from the death of a spouse, the changes in
law made by this Act apply only to a claim arising from a death that
occurs on or after the effective date of this Act. A claim arising
from a death that occurs before the effective date of this Act is
governed by the law in effect on the date of death, and the former
law is continued in effect for that purpose.
SECTION 8. This Act takes effect September 1, 2009.