SRC-VRA H.B. 885 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 885
By: Dutton (West, Royce)
Jurisprudence
5/17/2003
Engrossed


DIGEST AND PURPOSE 

Currently, there is no provision in the Family Code that specifies that
earnings and other income are subject to partition or exchange by spouses,
which may lead to some confusion. Also, there is no provision in the
Family Code that allows courts to treat  property acquired in other
jurisdictions which if acquired in Texas would be separate property, as
separate property.  

H.B. 885 provides  that property that is the subject  of a partition or
exchange agreement does include future earnings and income, and provides
that in a decree for divorce or annulment, property acquired in another
state, or property acquired by the person in exchange for real or personal
property, be treated as separate property if that property would have been
deemed separate property in Texas at the time of acquisition. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 3.403, Family Code, by amending Subsection (b)
and adding Subsection (b-1), as follows: 
 
(b)  Provides that the amount of the claim under this section is equal to
the product of a fraction of which the numerator is the economic
contribution to the property owned by the benefited marital estate by the
contributing marital estate and the denominator is an amount equal to the
sum of the economic contribution to the property owned by the benefited
marital estate by the contributing  marital estate and the contribution by
the benefited estate to the equity in the property owned by the benefited
estate.  Deletes text relating to equity in the property as of the date of
the marriage. 
 
(b-1)  Provides that the amount of the contribution by the benefited
marital estate under Subsection (b)(2)(B)(ii) is measured by determining
specific criteria. 
   
SECTION 2.  Amends Section 4.102, Family Code, to provide that the
partition or exchange of property includes future earnings and income
arising from the property as the separate property of the owning spouse
unless the spouses agree in a record that the future earnings and income
will be community property after the partition or exchange.  Replaces the
word "any" with "all or" as a modifier to "part" relating to community
property. 
 
SECTION 3.  Amends Section 4.205, Family Code, by adding Subsection (c) to
authorize the proof required by Subsection (a), if a proceeding regarding
enforcement of an agreement under this subchapter occurs after the death
of the spouse against whom enforcement is sought, to be made by an heir of
the spouse or the personal representative of the estate of that spouse. 
 
SECTION 4.  Amends Section 7.002, Family Code, as follows:
 
 Sec. 7.002.  New heading:  DIVISION AND DISPOSITION OF CERTAIN PROPERTY
UNDER SPECIAL CIRCUMSTANCES.  (a)  Created from existing text. 
  
(b)  Requires the court, in a decree of divorce or annulment, to award to
a spouse certain real and personal property, wherever situated, as the
separate property of the spouse. 
 
(c)  Requires the court, in a decree of divorce or annulment, to confirm
certain properties as the separate property of a spouse if partitioned or
exchanged by written agreement of the spouses. 
  
SECTION 5.(a) Effective date:  September 1, 2003.

(b)  Makes application of the change in law made by this Act by the
amendment of Section 4.102, Family Code, prospective. 

(c)  Makes application of the change in law made by this Act by the
enactment of Section 4.205(c), Family Code, prospective. 

(d)  Provides that the changes in law made by this Act by the amendment of
Sections 3.403 and 7.002, Family Code, apply to a suit for dissolution of
a marriage pending before a trial court on or filed on or after the
effective date of this Act.