Amend HB 734 as follows:
(1) Add the following appropriately numbered sections and
renumber the sections of the bill as appropriate:
SECTION ____. Subchapter A, Chapter 3, Family Code, is
amended by adding Section 3.006 to read as follows:
Sec. 3.006. PROPORTIONAL OWNERSHIP OF PROPERTY BY MARITAL
ESTATES. (a) If the community estate of the spouses and the
separate estate of a spouse have an ownership interest in property,
the respective ownership interests of the marital estates are
determined by the rule of inception of title.
(b) An equitable interest created by Subchapter E:
(1) does not create an ownership interest in a
spouse's separate property; and
(2) creates a claim against the spouse who owns the
property that matures on termination of the marriage.
SECTION ____. Chapter 3, Family Code, is amended by adding
Subchapter E to read as follows:
SUBCHAPTER E. EQUITABLE INTEREST OF COMMUNITY ESTATE
IN ENHANCED VALUE OF SEPARATE PROPERTY
Sec. 3.401. ENHANCEMENT IN VALUE DUE TO FINANCIAL
CONTRIBUTION OF COMMUNITY PROPERTY. (a) The enhancement in value
during a marriage of separate property owned by a spouse due to a
financial contribution made with community property creates an
equitable interest of the community estate in the separate
property.
(b) The equitable interest created under this section is
measured by the net amount of the enhancement in value of the
separate property during the marriage due to the financial
contribution made with community property.
Sec. 3.402. USE OF COMMUNITY PROPERTY TO DISCHARGE DEBT ON
SEPARATE PROPERTY. (a) The use of community property to discharge
all or part of a debt on separate property owned by a spouse during
a marriage creates an equitable interest of the community estate in
the separate property.
(b) The equitable interest created under Subsection (a) in
the enhanced value of separate property due to financial
contributions made with community property is computed by
multiplying the net enhanced value of the separate property by the
sum created by dividing:
(1) the total amount of the payments made by the
community estate to reduce the principal of the debt on the
separate property; by
(2) the sum of:
(A) the amount computed under Subdivision (1);
(B) the total amount of the payments made by the
separate estate to reduce the principal on the debt; and
(C) the total amount of any additional amount
spent by the separate estate to acquire the interest in the
property.
(c) For purposes of this section, the cost of any
improvements made to the separate property paid for by either the
separate or community estate is included as part of the principal
of the debt.
Sec. 3.403. APPLICATION OF INCEPTION OF TITLE RULE. (a)
This subchapter does not affect the rule of inception of title
under which the character of property is determined at the time the
right to the property is acquired.
(b) The equitable interest created under this subchapter
does not create an ownership interest in property.
Sec. 3.404. EQUITABLE INTEREST OF SEPARATE PROPERTY ESTATE.
(a) The separate estate of a spouse has an equitable interest in
the enhanced value of the separate estate of the other spouse or in
the enhanced value of the community estate for:
(1) a financial contribution made to the other
separate estate or to the community estate; and
(2) the discharge of all or part of a debt of the
other separate estate or of the community estate.
(b) The equitable interest created by this section is
measured in the manner provided by Section 3.401(b) or 3.402(b), as
appropriate.
Sec. 3.405. USE AND ENJOYMENT OF PROPERTY. The use and
enjoyment of property during a marriage does not create a claim of
offsetting benefits to the equitable interest created by this
subchapter.
Sec. 3.406. EQUITABLE LIEN. On termination of a marriage,
the court shall impose an equitable lien on community or separate
property to secure a claim arising by reason of an equitable
interest as provided by this subchapter.
SECTION ____. Section 7.002, Family Code, is amended to read
as follows:
Sec. 7.002. DIVISION OF PROPERTY UNDER SPECIAL
CIRCUMSTANCES. In addition to the division of the estate of the
parties required by Section 7.001, in a decree of divorce or
annulment the court shall order a division of the following real
and personal property, wherever situated, in a manner that the
court deems just and right, having due regard for the rights of
each party and any children of the marriage:
(1) property that was acquired by either spouse while
domiciled in another state and that would have been community
property if the spouse who acquired the property had been domiciled
in this state at the time of the acquisition; <or>
(2) property that was acquired by either spouse in
exchange for real or personal property and that would have been
community property if the spouse who acquired the property so
exchanged had been domiciled in this state at the time of its
acquisition; or
(3) the equitable interest, as provided by Subchapter
E, Chapter 3, of the:
(A) community estate in the separate estate of a
spouse;
(B) separate property of a spouse in the
separate property of the other spouse; and
(C) separate estate of a spouse in the community
estate.
(2) Strike SECTION 2 of the bill and substitute the
following appropriately numbered section:
SECTION ____. (a) Except as provided by this section, this
Act takes effect September 1, 1999.
(b) The change in law made by this Act by the addition of
Subchapter C, Chapter 4, Family Code, takes effect January 1, 2000,
but only if the constitutional amendment proposed by the 76th
Legislature, Regular Session, 1999, relating to the conversion of
separate property to community property, is approved by the voters.
If the proposed constitutional amendment is not approved by the
voters, that subchapter does not take effect.
(c) The change in law made by this Act by the enactment of
Section 3.006, Family Code, and Subchapter E, Chapter 3, Family
Code, and by the amendment of Section 7.002, Family Code, applies
to a suit for dissolution of a marriage pending on September 1,
1999, or filed on or after that date.