By Goodman H.B. No. 2142
76R6214 JMM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the appreciation or increase in value of separate
1-3 property during a marriage.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 3.003, Family Code, is amended by adding
1-6 Subsections (c) and (d) to read as follows:
1-7 (c) The appreciation or increase in value during a marriage
1-8 of separate property owned by a spouse due to the time, toil, and
1-9 effort of one or both of the spouses during the marriage or due to
1-10 the financial contributions made with community property for the
1-11 separate property is presumed to be community property. The
1-12 presumption created by this subsection may be rebutted only to the
1-13 extent that the spouse who owns the separate property proves by
1-14 clear and convincing evidence that the appreciation or increase in
1-15 value is not due to the time, toil, or effort of either spouse
1-16 during the marriage.
1-17 (d) If community property is used to discharge all or part
1-18 of a debt on the separate property under Subsection (c), the amount
1-19 of the contribution from community property is considered to be the
1-20 amount by which the principal of the debt was reduced during the
1-21 marriage. The community interest in the separate property subject
1-22 to the debt is computed by dividing the amount of the contribution
1-23 from community property by the amount of the original principal on
1-24 the debt.
2-1 SECTION 2. Section 7.002, Family Code, is amended to read as
2-2 follows:
2-3 Sec. 7.002. DIVISION OF PROPERTY UNDER SPECIAL
2-4 CIRCUMSTANCES. In addition to the division of the estate of the
2-5 parties required by Section 7.001, in a decree of divorce or
2-6 annulment the court shall order a division of the following real
2-7 and personal property, wherever situated, in a manner that the
2-8 court deems just and right, having due regard for the rights of
2-9 each party and any children of the marriage:
2-10 (1) property that was acquired by either spouse while
2-11 domiciled in another state and that would have been community
2-12 property if the spouse who acquired the property had been domiciled
2-13 in this state at the time of the acquisition; [or]
2-14 (2) property that was acquired by either spouse in
2-15 exchange for real or personal property and that would have been
2-16 community property if the spouse who acquired the property so
2-17 exchanged had been domiciled in this state at the time of its
2-18 acquisition; or
2-19 (3) property that appreciated or increased in value
2-20 during a marriage as provided by Section 3.003.
2-21 SECTION 3. This Act takes effect September 1, 1999, and
2-22 applies to a suit for dissolution of a marriage pending on that
2-23 date or filed on or after that date.
2-24 SECTION 4. The importance of this legislation and the
2-25 crowded condition of the calendars in both houses create an
2-26 emergency and an imperative public necessity that the
2-27 constitutional rule requiring bills to be read on three several
3-1 days in each house be suspended, and this rule is hereby suspended.