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A BILL TO BE ENTITLED
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AN ACT
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relating to the division of community property on dissolution of |
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marriage. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 7, Family Code, is amended by adding |
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Section 7.009 to read as follows: |
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Sec. 7.009. FRAUD ON THE COMMUNITY; DIVISION AND |
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DISPOSITION OF RECONSTITUTED ESTATE. (a) In this section: |
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(1) "Accounting" means a written explanation and |
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designation of all money or other assets spent or transferred, |
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including: |
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(A) the amount of money or other assets spent or |
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transferred; |
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(B) the date of each expenditure or transfer; |
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(C) the recipient of each expenditure or |
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transfer; and |
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(D) the location of the money or assets spent or |
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transferred. |
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(2) "Reconstituted estate" means the total value of |
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the community estate that would exist if an actual or constructive |
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fraud on the community had not occurred. |
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(b) A spouse commits actual fraud on the community if the |
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spouse, with dishonesty of purpose or intent to deceive, spends or |
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transfers community property for the primary purpose of depriving |
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the other spouse of the use and enjoyment of the assets involved in |
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the transaction. |
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(c) A spouse commits constructive fraud on the community if |
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the spouse, regardless of intent, breaches a legal or equitable |
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duty owed to the other spouse or to the community estate by spending |
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or transferring community property, and the conduct deceives the |
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other spouse or violates a confidence that exists as a result of the |
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marriage. |
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(d) Acts by a spouse that constitute actual or constructive |
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fraud on the community include: |
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(1) unfairly disposing of or encumbering the other |
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spouse's interest in community property or unfairly incurring |
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community debt without the other spouse's knowledge or consent; |
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(2) wrongfully conveying property from the community |
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estate without the other spouse's knowledge or consent; |
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(3) negligently, or with dishonesty of purpose or |
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intent to deceive, wasting community assets by depriving the |
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community estate of assets to the detriment of the other spouse; and |
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(4) failing, without good cause, to provide to the |
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other spouse an accounting of money or other assets that have been |
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transferred from the community estate without the consent of the |
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other spouse, if the other spouse contests the fairness of a |
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transfer of the money or assets. |
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(e) If the trier of fact determines that a spouse has |
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committed actual or constructive fraud on the community, the court |
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shall: |
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(1) calculate the value by which the community estate |
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was depleted as a result of the fraud on the community and calculate |
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the amount of the reconstituted estate; and |
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(2) divide the value of the reconstituted estate |
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between the parties in a manner the court deems just and right. |
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(f) In making a just and right division of the reconstituted |
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estate under Section 7.001, the court may grant any legal or |
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equitable relief necessary to accomplish a just and right division, |
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including: |
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(1) awarding to the wronged spouse an appropriate |
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share of the community estate remaining after the actual or |
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constructive fraud on the community; |
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(2) awarding a money judgment in favor of the wronged |
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spouse against the spouse who committed the actual or constructive |
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fraud on the community; or |
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(3) awarding to the wronged spouse both a money |
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judgment and an appropriate share of the community estate. |
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SECTION 2. The change in law made by this Act applies to a |
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suit for dissolution of a marriage pending before a trial court on |
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or filed on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2011. |