H.B. No. 1547
AN ACT
relating to claims for reimbursement between marital estates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 3.401, Family Code, is amended by adding
Subdivisions (1) and (2) to read as follows:
(1) "Benefited estate" means a marital estate that
receives a benefit from another marital estate.
(2) "Conferring estate" means a marital estate that
confers a benefit on another marital estate.
SECTION 2. Section 3.402, Family Code, is amended to read as
follows:
Sec. 3.402. CLAIM FOR REIMBURSEMENT; OFFSETS. (a) A claim
for reimbursement exists when one or both spouses use property of
one marital estate to confer on the property of another marital
estate a benefit which, if not repaid, would result in unjust
enrichment to the benefited estate [For purposes of this
subchapter, a claim for reimbursement includes:
[(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) 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) 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) 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) 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) the refinancing of the principal amount described
by Subdivisions (3)-(6), to the extent the refinancing reduces that
principal amount in a manner described by the applicable
subdivision;
[(8) capital improvements to property other than by
incurring debt; and
[(9) the reduction by the community property estate of
an unsecured debt incurred by the separate estate of one of the
spouses].
(b) A spouse seeking reimbursement to a marital estate must
prove:
(1) that the spouse or both spouses used property of
the marital estate to confer a benefit on the property of another
marital estate;
(2) the value of the benefit described by Subdivision
(1); and
(3) that unjust enrichment of the benefited estate
will occur if the benefited estate is not required to reimburse the
conferring estate.
(c) For purposes of this subchapter, the property of a
marital estate confers a benefit on another marital estate's
property if:
(1) one or both spouses used property of the
conferring estate to pay a debt, liability, or expense that in
equity and good conscience should have been paid from the benefited
estate's property;
(2) one or both spouses used property of the
conferring estate to make improvements on the benefited estate's
real property, and the improvements resulted in an enhancement in
the value of the benefited estate's real property; or
(3) one or both spouses used time, toil, talent, or
effort to enhance the value of property of a spouse's separate
estate beyond that which was reasonably necessary to manage and
preserve the spouse's separate property, and for which the
community marital estate did not receive adequate compensation.
(d) For purposes of this subchapter, the value of the
benefit conferred by the property of one marital estate on the
property of another marital estate is determined as of the date of
the trial's commencement and:
(1) if the benefit resulted from the use of the
conferring estate's property to pay a debt, liability, or expense
that in equity and good conscience should have been paid from the
benefited estate's property, then the value of the benefit
conferred is measured by the amount of the debt, liability, or
expense paid by the conferring estate;
(2) if the benefit resulted from the use of the
conferring estate's property to make improvements on the benefited
estate's real property, then the value of the benefit conferred is
measured by the enhancement in the value of the benefited estate's
real property that resulted from the improvements; or
(3) if the benefit resulted from the use of time, toil,
talent, or effort to enhance the value of property of a spouse's
separate estate, then the value of the benefit conferred is
measured by the value of the time, toil, talent, or effort beyond
that which was reasonably necessary to manage and preserve the
spouse's separate property.
(e) The determination of whether unjust enrichment will
occur if one marital estate is not required to reimburse another
marital estate is a question for the court to decide.
(f) 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.
(g) A claim for reimbursement of a marital estate by one
spouse may be offset by the value of any related benefit that the
other spouse proves that the conferring estate received from the
benefited estate, including:
(1) the value of the use and enjoyment of the property
by the conferring estate, except that the separate marital estate
of a spouse may not claim an offset for use and enjoyment of a
primary or secondary residence owned wholly or partly by the
separate marital estate against contributions made by the community
marital estate to the separate marital estate;
(2) income received by the conferring estate from the
property of the benefited estate; or
(3) any reduction in the amount of any income tax
obligation of the conferring estate by virtue of the conferring
estate claiming tax-deductible items relating to the property of
the benefited estate, such as depreciation, interest, taxes,
maintenance, or other deductible payments.
(h) [(c) Benefits for the use and enjoyment of property may
be offset against a claim for reimbursement for expenditures to
benefit a marital estate, except that the separate estate of a
spouse may not claim an offset for use and enjoyment of a primary or
secondary residence owned wholly or partly by the separate estate
against contributions made by the community estate to the separate
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.
SECTION 3. Section 3.404(b), Family Code, is amended to
read as follows:
(b) A claim for reimbursement 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 conferring
[contributing] estate. The claim matures on dissolution of the
marriage or the death of either spouse.
SECTION 4. Section 3.406, Family Code, is amended to read as
follows:
Sec. 3.406. EQUITABLE LIEN. (a) On dissolution of a
marriage, the court may impose an equitable lien on the property of
a benefited [marital] estate to secure a claim for reimbursement
against that property by a conferring [contributing marital]
estate.
(b) On the death of a spouse, a court may, on application for
a claim for reimbursement 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 Chapter 22,
Estates Code, impose an equitable lien on the property of a
benefited [marital] estate to secure a claim for reimbursement
against that property by a conferring [contributing marital]
estate.
SECTION 5. Subchapter E, Chapter 3, Family Code, is amended
by adding Section 3.411 to read as follows:
Sec. 3.411. CUMULATIVE REMEDIES. The remedies provided by
this subchapter are not exclusive and are in addition to any other
remedy provided by law.
SECTION 6. The change in law made by this Act applies to a
claim for reimbursement that is pending in a trial court on the
effective date of this Act or that is filed on or after that date.
SECTION 7. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1547 was passed by the House on April
28, 2023, by the following vote: Yeas 141, Nays 3, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1547 was passed by the Senate on May
17, 2023, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor