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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) "Fraud on the community" means improper conduct by |
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a spouse to the detriment of the community estate. The term |
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includes a spouse: |
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(A) wrongfully conveying property out of the |
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community estate; |
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(B) wasting community funds or property; and |
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(C) failing to provide an accounting of money |
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transferred from the community estate. |
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(2) "Reconstituted estate" means the total amount of |
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money that would have been in the community estate if the fraud on |
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the community had not occurred. |
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(b) Before dividing the community estate under Section |
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7.001, the trier of fact must determine whether a spouse has |
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committed fraud on the community. |
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(c) If the trier of fact determines that a spouse has |
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committed fraud on the community, the court 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; |
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(2) divide the value of the reconstituted estate |
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between the parties; and |
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(3) award to the spouse that committed the fraud on the |
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community the portion of the estate that the spouse depleted. |
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(d) In making a just and right division of the reconstituted |
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estate under Section 7.001, the court may: |
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(1) award a money judgment in favor of the wronged |
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spouse against the spouse who committed the fraud on the community; |
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(2) award the wronged spouse an appropriate share of |
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the community estate remaining after the fraud on the community; or |
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(3) award the wronged spouse both a money judgment and |
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an appropriate share of the community estate as necessary to effect |
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a just and right division. |
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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. |