BILL ANALYSIS H.B. 2384 By: Longoria 05-04-95 Committee Report (Unamended) BACKGROUND Because Texas is a community property state, a couple's assets, property, and money obtained during the marriage are divided equally between the two upon divorce. The same applies to retirement benefits earned by either spouse. Current law does not state that divorced spouses are entitled only to retirement benefits earned during marriage unless otherwise specified on the divorce decree. This discrepancy causes divorced spouses, who believe they are only forfeiting benefits earned while the couple was married, to enter into an agreement awarding their spouse half of their total retirement benefits income even if the spouse worked for a period of time after the dissolution of the marriage. PURPOSE The purpose of this bill is to clarify the law in effect by making retirement benefits earned after the dissolution of the marriage separate property of that spouse. This property would not be subject to division by a court rendering a decision in the dissolution of the marriage. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 5, Family Code, by adding Section 5.05 to provide that retirement benefits earned by a spouse after the dissolution of a marriage are the separate property of that spouse and are not subject to division by a court rendering an order in a suit to dissolve the marriage. SECTION 2. Makes application of this Act retroactive. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE ACTION H.B. 2384 was considered in a public hearing on May 3, 1995. The following persons testified in favor of the bill: Bob Thompson, representing himself. The Chair moved that H.B. 2384 be reported favorably without amendment with the recommendation that it do pass and be printed. The motion prevailed by a record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.