CN C.S.H.B. 247 75(R)BILL ANALYSIS


JUVENILE JUSTICE AND FAMILY ISSUES
C.S.H.B. 247
By: Longoria
4-24-97
Committee Report (Substituted)

BACKGROUND

Texas is a community property state.  This means that when two spouses are
divorced, the couple's assets, property, and money are divided equally
between the two.  Simply put, everything the couple possesses is split
between the two parties.  The same applies to retirement benefits earned
by either spouse.  Current law does not state that divorced spouses are
only entitled to retirement benefits earned during the life of the
marriage unless otherwise specified 
on the divorce decree.  This discrepancy causes divorced spouses, who
believe they are only forfeiting benefits earned while the couple are
married, to enter into an agreement awarding their spouse half of their
total retirement benefits income regardless of whether the spouse worked
for some period. 

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 opinion of this committee that this bill does not grant any
additional rulemaking authority to any state officer, institution, or
department. 

SECTION-BY-SECTION ANALYSIS

SECTION 1: Amends Subchapter A, Chapter 3, Family Code by declaring
retirement benefits earned by a spouse after the dissolution of a marriage
are separate property of that spouse and are not subject to division by a
court rendering an order in the suit to dissolve the marriage. 

SECTION 2: The Act is intended to clarify existing law in effect before
the effective date of this Act and applies to retirement benefits earned
by a spouse after dissolution of a marriage without regard to whether the
dissolution occurs before, on, or after the effective date of this Act. 

SECTION 3: Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute bill makes no substantive change to the original, rather it
places the new language in Subchapter A, Chapter 3, Family Code, as added
by Senate Bill No. 334, Acts of the 75th Legislature, Regular Session,
1997, where as the original bill placed the language in Subchapter A,
Chapter 5, Family Code.