Texas House Bill HB2568

Texas 2009 - 81st Regular

Caption

Relating to the marital property interest in certain employee benefits.

Impact

The implications of HB2568 are significant for marital property law, considering the increasing prevalence of employer-provided stock options and restricted stock in compensation packages. If enacted, the bill would ensure that courts have a clearer framework for determining what constitutes marital versus separate property in the context of employee benefits. This clarity could potentially expedite divorce proceedings where such benefits are involved, reducing the legal uncertainties that often arise in these cases.

Summary

House Bill 2568 seeks to clarify the marital property interests in certain employee benefits, specifically regarding stock option and restricted stock plans. The bill amends Section 3.007(d) of the Family Code to define how a spouse's interest in these benefits is calculated based on whether they were granted before or during the marriage and under the condition of employment following the dissolution of the marriage. The primary intention is to ensure a fair and definable approach to such employee benefits during divorce proceedings.

Contention

While the bill appears to streamline the determination of marital property interests, it may also lead to disputes over interpretation. Stakeholders, including financial advisors and family law practitioners, might raise concerns regarding how these provisions impact divorce settlements and long-term financial planning for both parties involved. There could be contention on whether the formula applied is equitable, particularly if employment factors are perceived as unjustly benefitting one spouse over the other post-divorce.