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A BILL TO BE ENTITLED
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AN ACT
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relating to the rights of spouses and claims for reimbursement in |
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relation to separate and community property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter E, Chapter 3, Family |
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Code, is amended to read as follows: |
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SUBCHAPTER E. CLAIMS FOR [ECONOMIC CONTRIBUTION AND] REIMBURSEMENT |
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SECTION 2. Section 3.402, Family Code, is amended to read as |
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follows: |
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Sec. 3.402. CLAIM FOR REIMBURSEMENT; OFFSETS [ECONOMIC
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CONTRIBUTION]. (a) For purposes of this subchapter, a claim for |
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reimbursement includes only: |
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(1) payment by one marital estate of the unsecured |
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liabilities of another marital estate; |
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(2) inadequate compensation for the time, toil, |
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talent, and effort of a spouse by a business entity under the |
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control and direction of that spouse; |
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(3) ["economic contribution" is the dollar amount of:
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[(1)] the reduction of the principal amount of a debt |
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secured by a lien on property owned before marriage, to the extent |
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the debt existed at the time of marriage; |
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(4) [(2)] the reduction of the principal amount of a |
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debt secured by a lien on property received by a spouse by gift, |
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devise, or descent during a marriage, to the extent the debt existed |
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at the time the property was received; |
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(5) [(3)] the reduction of the principal amount of |
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that part of a debt, including a home equity loan: |
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(A) incurred during a marriage; |
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(B) secured by a lien on property; and |
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(C) incurred for the acquisition of, or for |
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capital improvements to, property; |
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(6) [(4)] the reduction of the principal amount of |
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that part of a debt: |
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(A) incurred during a marriage; |
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(B) secured by a lien on property owned by a |
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spouse; |
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(C) for which the creditor agreed to look for |
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repayment solely to the separate marital estate of the spouse on |
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whose property the lien attached; and |
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(D) incurred for the acquisition of, or for |
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capital improvements to, property; |
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(7) [(5)] the refinancing of the principal amount |
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described by Subdivisions (3)-(6) [(1)-(4)], to the extent the |
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refinancing reduces that principal amount in a manner described by |
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the applicable [appropriate] subdivision; and |
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(8) [(6)] capital improvements to property other than |
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by incurring debt. |
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(b) The court shall resolve a claim for reimbursement by |
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using equitable principles, including the principle that claims for |
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reimbursement may be offset against each other if the court |
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determines it to be appropriate. |
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(c) Benefits for the use and enjoyment of property may be |
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offset against a claim for reimbursement for expenditures to |
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benefit a marital estate. |
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(d) Reimbursement for funds expended by a marital estate for |
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improvements to another marital estate shall be measured by the |
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enhancement in value to the benefited marital estate. |
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(e) The party seeking an offset to a claim for reimbursement |
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has the burden of proof with respect to the offset ["Economic
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contribution" does not include the dollar amount of:
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[(1)
expenditures for ordinary maintenance and repair
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or for taxes, interest, or insurance; or
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[(2)
the contribution by a spouse of time, toil,
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talent, or effort during the marriage]. |
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SECTION 3. Section 3.404(b), Family Code, is amended to |
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read as follows: |
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(b) A [The] claim for reimbursement [economic contribution
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created] under this subchapter does not create an ownership |
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interest in property, but does create a claim against the property |
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of the benefited estate by the contributing estate. The claim |
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matures on dissolution of the marriage or the death of either |
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spouse. |
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SECTION 4. Sections 3.406(a) and (b), Family Code, are |
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amended to read as follows: |
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(a) On dissolution of a marriage, the court may [shall] |
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impose an equitable lien on the property of a benefited marital |
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estate to secure a claim for reimbursement against [economic
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contribution in] that property by a contributing [another] marital |
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estate. |
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(b) On the death of a spouse, a court may [shall], on |
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application for a claim for reimbursement [of economic
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contribution] brought by the surviving spouse, the personal |
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representative of the estate of the deceased spouse, or any other |
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person interested in the estate, as defined by Section 3, Texas |
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Probate Code, impose an equitable lien on the property of a |
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benefited marital estate to secure a claim for reimbursement |
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against that property [economic contribution] by a contributing |
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marital estate. |
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SECTION 5. Section 7.007, Family Code, is amended to read as |
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follows: |
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Sec. 7.007. DISPOSITION OF CLAIM FOR [ECONOMIC CONTRIBUTION
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OR CLAIM FOR] REIMBURSEMENT. [(a)
In a decree of divorce or
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annulment, the court shall determine the rights of both spouses in a
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claim for economic contribution as provided by Subchapter E,
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Chapter 3, and in a manner that the court considers just and right,
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having due regard for the rights of each party and any children of
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the marriage, shall:
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[(1)
order a division of a claim for economic
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contribution of the community marital estate to the separate
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marital estate of one of the spouses;
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[(2)
order that a claim for an economic contribution
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by one separate marital estate of a spouse to the community marital
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estate of the spouses be awarded to the owner of the contributing
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separate marital estate; and
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[(3)
order that a claim for economic contribution of
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one separate marital estate in the separate marital estate of the
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other spouse be awarded to the owner of the contributing marital
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estate.
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[(b)] In a decree of divorce or annulment, the court shall |
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determine the rights of both spouses in a claim for reimbursement as |
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provided by Subchapter E, Chapter 3, and shall apply equitable |
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principles to: |
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(1) determine whether to recognize the claim after |
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taking into account all the relative circumstances of the spouses; |
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and |
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(2) order a division of the claim for reimbursement, |
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if appropriate, in a manner that the court considers just and right, |
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having due regard for the rights of each party and any children of |
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the marriage. |
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SECTION 6. The following laws are repealed: |
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(1) Sections 3.401(1), (2), and (3), Family Code; and |
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(2) Sections 3.403, 3.406(c), 3.407, 3.408, and 3.410, |
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Family Code. |
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SECTION 7. (a) In regard to a claim under Subchapter E, |
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Chapter 3, Family Code, that arises from a suit for dissolution of a |
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marriage, the changes in law made by this Act apply only to a claim |
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made in a suit filed on or after the effective date of this Act. A |
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claim made in a suit filed before the effective date of this Act is |
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governed by the law in effect on the date the suit was filed, and the |
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former law is continued in effect for that purpose. |
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(b) In regard to a claim under Subchapter E, Chapter 3, |
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Family Code, that arises from the death of a spouse, the changes in |
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law made by this Act apply only to a claim arising from a death that |
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occurs on or after the effective date of this Act. A claim arising |
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from a death that occurs before the effective date of this Act is |
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governed by the law in effect on the date of death, and the former |
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law is continued in effect for that purpose. |
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SECTION 8. This Act takes effect September 1, 2009. |