Texas 2023 - 88th Regular

Texas House Bill HB1547 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 1547
2	2
3	3
4	4	AN ACT
5	5	relating to claims for reimbursement between marital estates.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Section 3.401, Family Code, is amended by adding
8	8	Subdivisions (1) and (2) to read as follows:
9	9	(1) "Benefited estate" means a marital estate that
10	10	receives a benefit from another marital estate.
11	11	(2) "Conferring estate" means a marital estate that
12	12	confers a benefit on another marital estate.
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. (a) A claim
16	16	for reimbursement exists when one or both spouses use property of
17	17	one marital estate to confer on the property of another marital
18	18	estate a benefit which, if not repaid, would result in unjust
19	19	enrichment to the benefited estate [For purposes of this
20	20	subchapter, a claim for reimbursement includes:
21	21	[(1) payment by one marital estate of the unsecured
22	22	liabilities of another marital estate;
23	23	[(2) inadequate compensation for the time, toil,
24	24	talent, and effort of a spouse by a business entity under the
25	25	control and direction of that spouse;
26	26	[(3) the reduction of the principal amount of a debt
27	27	secured by a lien on property owned before marriage, to the extent
28	28	the debt existed at the time of marriage;
29	29	[(4) the reduction of the principal amount of a debt
30	30	secured by a lien on property received by a spouse by gift, devise,
31	31	or descent during a marriage, to the extent the debt existed at the
32	32	time the property was received;
33	33	[(5) the reduction of the principal amount of that
34	34	part of a debt, including a home equity loan:
35	35	[(A) incurred during a marriage;
36	36	[(B) secured by a lien on property; and
37	37	[(C) incurred for the acquisition of, or for
38	38	capital improvements to, property;
39	39	[(6) the reduction of the principal amount of that
40	40	part of a debt:
41	41	[(A) incurred during a marriage;
42	42	[(B) secured by a lien on property owned by a
43	43	spouse;
44	44	[(C) for which the creditor agreed to look for
45	45	repayment solely to the separate marital estate of the spouse on
46	46	whose property the lien attached; and
47	47	[(D) incurred for the acquisition of, or for
48	48	capital improvements to, property;
49	49	[(7) the refinancing of the principal amount described
50	50	by Subdivisions (3)-(6), to the extent the refinancing reduces that
51	51	principal amount in a manner described by the applicable
52	52	subdivision;
53	53	[(8) capital improvements to property other than by
54	54	incurring debt; and
55	55	[(9) the reduction by the community property estate of
56	56	an unsecured debt incurred by the separate estate of one of the
57	57	spouses].
58	58	(b) A spouse seeking reimbursement to a marital estate must
59	59	prove:
60	60	(1) that the spouse or both spouses used property of
61	61	the marital estate to confer a benefit on the property of another
62	62	marital estate;
63	63	(2) the value of the benefit described by Subdivision
64	64	(1); and
65	65	(3) that unjust enrichment of the benefited estate
66	66	will occur if the benefited estate is not required to reimburse the
67	67	conferring estate.
68	68	(c) For purposes of this subchapter, the property of a
69	69	marital estate confers a benefit on another marital estate's
70	70	property if:
71	71	(1) one or both spouses used property of the
72	72	conferring estate to pay a debt, liability, or expense that in
73	73	equity and good conscience should have been paid from the benefited
74	74	estate's property;
75	75	(2) one or both spouses used property of the
76	76	conferring estate to make improvements on the benefited estate's
77	77	real property, and the improvements resulted in an enhancement in
78	78	the value of the benefited estate's real property; or
79	79	(3) one or both spouses used time, toil, talent, or
80	80	effort to enhance the value of property of a spouse's separate
81	81	estate beyond that which was reasonably necessary to manage and
82	82	preserve the spouse's separate property, and for which the
83	83	community marital estate did not receive adequate compensation.
84	84	(d) For purposes of this subchapter, the value of the
85	85	benefit conferred by the property of one marital estate on the
86	86	property of another marital estate is determined as of the date of
87	87	the trial's commencement and:
88	88	(1) if the benefit resulted from the use of the
89	89	conferring estate's property to pay a debt, liability, or expense
90	90	that in equity and good conscience should have been paid from the
91	91	benefited estate's property, then the value of the benefit
92	92	conferred is measured by the amount of the debt, liability, or
93	93	expense paid by the conferring estate;
94	94	(2) if the benefit resulted from the use of the
95	95	conferring estate's property to make improvements on the benefited
96	96	estate's real property, then the value of the benefit conferred is
97	97	measured by the enhancement in the value of the benefited estate's
98	98	real property that resulted from the improvements; or
99	99	(3) if the benefit resulted from the use of time, toil,
100	100	talent, or effort to enhance the value of property of a spouse's
101	101	separate estate, then the value of the benefit conferred is
102	102	measured by the value of the time, toil, talent, or effort beyond
103	103	that which was reasonably necessary to manage and preserve the
104	104	spouse's separate property.
105	105	(e) The determination of whether unjust enrichment will
106	106	occur if one marital estate is not required to reimburse another
107	107	marital estate is a question for the court to decide.
108	108	(f) The court shall resolve a claim for reimbursement by
109	109	using equitable principles, including the principle that claims for
110	110	reimbursement may be offset against each other if the court
111	111	determines it to be appropriate.
112	112	(g) A claim for reimbursement of a marital estate by one
113	113	spouse may be offset by the value of any related benefit that the
114	114	other spouse proves that the conferring estate received from the
115	115	benefited estate, including:
116	116	(1) the value of the use and enjoyment of the property
117	117	by the conferring estate, except that the separate marital estate
118	118	of a spouse may not claim an offset for use and enjoyment of a
119	119	primary or secondary residence owned wholly or partly by the
120	120	separate marital estate against contributions made by the community
121	121	marital estate to the separate marital estate;
122	122	(2) income received by the conferring estate from the
123	123	property of the benefited estate; or
124	124	(3) any reduction in the amount of any income tax
125	125	obligation of the conferring estate by virtue of the conferring
126	126	estate claiming tax-deductible items relating to the property of
127	127	the benefited estate, such as depreciation, interest, taxes,
128	128	maintenance, or other deductible payments.
129	129	(h) [(c) Benefits for the use and enjoyment of property may
130	130	be offset against a claim for reimbursement for expenditures to
131	131	benefit a marital estate, except that the separate estate of a
132	132	spouse may not claim an offset for use and enjoyment of a primary or
133	133	secondary residence owned wholly or partly by the separate estate
134	134	against contributions made by the community estate to the separate
135	135	estate.
136	136	[(d) Reimbursement for funds expended by a marital estate
137	137	for improvements to another marital estate shall be measured by the
138	138	enhancement in value to the benefited marital estate.
139	139	[(e)] The party seeking an offset to a claim for
140	140	reimbursement has the burden of proof with respect to the offset.
141	141	SECTION 3. Section 3.404(b), Family Code, is amended to
142	142	read as follows:
143	143	(b) A claim for reimbursement under this subchapter does not
144	144	create an ownership interest in property, but does create a claim
145	145	against the property of the benefited estate by the conferring
146	146	[contributing] estate. The claim matures on dissolution of the
147	147	marriage or the death of either spouse.
148	148	SECTION 4. Section 3.406, Family Code, is amended to read as
149	149	follows:
150	150	Sec. 3.406. EQUITABLE LIEN. (a) On dissolution of a
151	151	marriage, the court may impose an equitable lien on the property of
152	152	a benefited [marital] estate to secure a claim for reimbursement
153	153	against that property by a conferring [contributing marital]
154	154	estate.
155	155	(b) On the death of a spouse, a court may, on application for
156	156	a claim for reimbursement brought by the surviving spouse, the
157	157	personal representative of the estate of the deceased spouse, or
158	158	any other person interested in the estate, as defined by Chapter 22,
159	159	Estates Code, impose an equitable lien on the property of a
160	160	benefited [marital] estate to secure a claim for reimbursement
161	161	against that property by a conferring [contributing marital]
162	162	estate.
163	163	SECTION 5. Subchapter E, Chapter 3, Family Code, is amended
164	164	by adding Section 3.411 to read as follows:
165	165	Sec. 3.411. CUMULATIVE REMEDIES. The remedies provided by
166	166	this subchapter are not exclusive and are in addition to any other
167	167	remedy provided by law.
168	168	SECTION 6. The change in law made by this Act applies to a
169	169	claim for reimbursement that is pending in a trial court on the
170	170	effective date of this Act or that is filed on or after that date.
171	171	SECTION 7. This Act takes effect September 1, 2023.
172	172	______________________________ ______________________________
173	173	President of the Senate Speaker of the House
174	174	I certify that H.B. No. 1547 was passed by the House on April
175	175	28, 2023, by the following vote: Yeas 141, Nays 3, 2 present, not
176	176	voting.
177	177	______________________________
178	178	Chief Clerk of the House
179	179	I certify that H.B. No. 1547 was passed by the Senate on May
180	180	17, 2023, by the following vote: Yeas 31, Nays 0.
181	181	______________________________
182	182	Secretary of the Senate
183	183	APPROVED: _____________________
184	184	Date
185	185	_____________________
186	186	Governor