Texas 2009 - 81st Regular

Texas House Bill HB2566 Compare Versions

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

Old	New	Differences
1	1	81R4251 KSD-F
2	2	By: Frost H.B. No. 2566
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the rights of spouses and claims for reimbursement in
8	8	relation to separate and community property.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Subchapter E, Chapter 3, Family
11	11	Code, is amended to read as follows:
12	12	SUBCHAPTER E. CLAIMS FOR [ECONOMIC CONTRIBUTION AND] REIMBURSEMENT
13	13	SECTION 2. Section 3.402, Family Code, is amended to read as
14	14	follows:
15	15	Sec. 3.402. CLAIM FOR REIMBURSEMENT; OFFSETS [ECONOMIC
16	16	CONTRIBUTION]. (a) For purposes of this subchapter, a claim for
17	17	reimbursement includes only:
18	18	(1) payment by one marital estate of the unsecured
19	19	liabilities of another marital estate;
20	20	(2) inadequate compensation for the time, toil,
21	21	talent, and effort of a spouse by a business entity under the
22	22	control and direction of that spouse;
23	23	(3) ["economic contribution" is the dollar amount of:
24	24	[(1)] the reduction of the principal amount of a debt
25	25	secured by a lien on property owned before marriage, to the extent
26	26	the debt existed at the time of marriage;
27	27	(4) [(2)] the reduction of the principal amount of a
28	28	debt secured by a lien on property received by a spouse by gift,
29	29	devise, or descent during a marriage, to the extent the debt existed
30	30	at the time the property was received;
31	31	(5) [(3)] the reduction of the principal amount of
32	32	that part of a debt, including a home equity loan:
33	33	(A) incurred during a marriage;
34	34	(B) secured by a lien on property; and
35	35	(C) incurred for the acquisition of, or for
36	36	capital improvements to, property;
37	37	(6) [(4)] the reduction of the principal amount of
38	38	that part of a debt:
39	39	(A) incurred during a marriage;
40	40	(B) secured by a lien on property owned by a
41	41	spouse;
42	42	(C) for which the creditor agreed to look for
43	43	repayment solely to the separate marital estate of the spouse on
44	44	whose property the lien attached; and
45	45	(D) incurred for the acquisition of, or for
46	46	capital improvements to, property;
47	47	(7) [(5)] the refinancing of the principal amount
48	48	described by Subdivisions (3)-(6) [(1)-(4)], to the extent the
49	49	refinancing reduces that principal amount in a manner described by
50	50	the applicable [appropriate] subdivision; and
51	51	(8) [(6)] capital improvements to property other than
52	52	by incurring debt.
53	53	(b) The court shall resolve a claim for reimbursement by
54	54	using equitable principles, including the principle that claims for
55	55	reimbursement may be offset against each other if the court
56	56	determines it to be appropriate.
57	57	(c) Benefits for the use and enjoyment of property may be
58	58	offset against a claim for reimbursement for expenditures to
59	59	benefit a marital estate.
60	60	(d) Reimbursement for funds expended by a marital estate for
61	61	improvements to another marital estate shall be measured by the
62	62	enhancement in value to the benefited marital estate.
63	63	(e) The party seeking an offset to a claim for reimbursement
64	64	has the burden of proof with respect to the offset ["Economic
65	65	contribution" does not include the dollar amount of:
66	66	[(1) expenditures for ordinary maintenance and repair
67	67	or for taxes, interest, or insurance; or
68	68	[(2) the contribution by a spouse of time, toil,
69	69	talent, or effort during the marriage].
70	70	SECTION 3. Section 3.404(b), Family Code, is amended to
71	71	read as follows:
72	72	(b) A [The] claim for reimbursement [economic contribution
73	73	created] under this subchapter does not create an ownership
74	74	interest in property, but does create a claim against the property
75	75	of the benefited estate by the contributing estate. The claim
76	76	matures on dissolution of the marriage or the death of either
77	77	spouse.
78	78	SECTION 4. Sections 3.406(a) and (b), Family Code, are
79	79	amended to read as follows:
80	80	(a) On dissolution of a marriage, the court may [shall]
81	81	impose an equitable lien on the property of a benefited marital
82	82	estate to secure a claim for reimbursement against [economic
83	83	contribution in] that property by a contributing [another] marital
84	84	estate.
85	85	(b) On the death of a spouse, a court may [shall], on
86	86	application for a claim for reimbursement [of economic
87	87	contribution] brought by the surviving spouse, the personal
88	88	representative of the estate of the deceased spouse, or any other
89	89	person interested in the estate, as defined by Section 3, Texas
90	90	Probate Code, impose an equitable lien on the property of a
91	91	benefited marital estate to secure a claim for reimbursement
92	92	against that property [economic contribution] by a contributing
93	93	marital estate.
94	94	SECTION 5. Section 7.007, Family Code, is amended to read as
95	95	follows:
96	96	Sec. 7.007. DISPOSITION OF CLAIM FOR [ECONOMIC CONTRIBUTION
97	97	OR CLAIM FOR] REIMBURSEMENT. [(a) In a decree of divorce or
98	98	annulment, the court shall determine the rights of both spouses in a
99	99	claim for economic contribution as provided by Subchapter E,
100	100	Chapter 3, and in a manner that the court considers just and right,
101	101	having due regard for the rights of each party and any children of
102	102	the marriage, shall:
103	103	[(1) order a division of a claim for economic
104	104	contribution of the community marital estate to the separate
105	105	marital estate of one of the spouses;
106	106	[(2) order that a claim for an economic contribution
107	107	by one separate marital estate of a spouse to the community marital
108	108	estate of the spouses be awarded to the owner of the contributing
109	109	separate marital estate; and
110	110	[(3) order that a claim for economic contribution of
111	111	one separate marital estate in the separate marital estate of the
112	112	other spouse be awarded to the owner of the contributing marital
113	113	estate.
114	114	[(b)] In a decree of divorce or annulment, the court shall
115	115	determine the rights of both spouses in a claim for reimbursement as
116	116	provided by Subchapter E, Chapter 3, and shall apply equitable
117	117	principles to:
118	118	(1) determine whether to recognize the claim after
119	119	taking into account all the relative circumstances of the spouses;
120	120	and
121	121	(2) order a division of the claim for reimbursement,
122	122	if appropriate, in a manner that the court considers just and right,
123	123	having due regard for the rights of each party and any children of
124	124	the marriage.
125	125	SECTION 6. The following laws are repealed:
126	126	(1) Sections 3.401(1), (2), and (3), Family Code; and
127	127	(2) Sections 3.403, 3.406(c), 3.407, 3.408, and 3.410,
128	128	Family Code.
129	129	SECTION 7. (a) In regard to a claim under Subchapter E,
130	130	Chapter 3, Family Code, that arises from a suit for dissolution of a
131	131	marriage, the changes in law made by this Act apply only to a claim
132	132	made in a suit filed on or after the effective date of this Act. A
133	133	claim made in a suit filed before the effective date of this Act is
134	134	governed by the law in effect on the date the suit was filed, and the
135	135	former law is continued in effect for that purpose.
136	136	(b) In regard to a claim under Subchapter E, Chapter 3,
137	137	Family Code, that arises from the death of a spouse, the changes in
138	138	law made by this Act apply only to a claim arising from a death that
139	139	occurs on or after the effective date of this Act. A claim arising
140	140	from a death that occurs before the effective date of this Act is
141	141	governed by the law in effect on the date of death, and the former
142	142	law is continued in effect for that purpose.
143	143	SECTION 8. This Act takes effect September 1, 2009.