88R17796 AMF-F
 
  By: Cook H.B. No. 1547
 
  Substitute the following for H.B. No. 1547:
 
  By:  Cook C.S.H.B. No. 1547
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to claims for reimbursement between marital estates.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 3.401, Family Code, is amended by adding
  Subdivisions (1) and (2) to read as follows:
               (1)  "Benefited estate" means a marital estate that
  receives a benefit from another marital estate.
               (2)  "Conferring estate" means a marital estate that
  confers a benefit on another marital estate.
         SECTION 2.  Section 3.402, Family Code, is amended to read as
  follows:
         Sec. 3.402.  CLAIM FOR REIMBURSEMENT; OFFSETS.  (a)  A claim
  for reimbursement exists when one or both spouses use property of
  one marital estate to confer on the property of another marital
  estate a benefit which, if not repaid, would result in unjust
  enrichment to the benefited estate [For purposes of this
  subchapter, a claim for reimbursement includes:
               [(1)  payment by one marital estate of the unsecured
  liabilities of another marital estate;
               [(2)  inadequate compensation for the time, toil,
  talent, and effort of a spouse by a business entity under the
  control and direction of that spouse;
               [(3)  the reduction of the principal amount of a debt
  secured by a lien on property owned before marriage, to the extent
  the debt existed at the time of marriage;
               [(4)  the reduction of the principal amount of a debt
  secured by a lien on property received by a spouse by gift, devise,
  or descent during a marriage, to the extent the debt existed at the
  time the property was received;
               [(5)  the reduction of the principal amount of that
  part of a debt, including a home equity loan:
                     [(A)  incurred during a marriage;
                     [(B)  secured by a lien on property; and
                     [(C)  incurred for the acquisition of, or for
  capital improvements to, property;
               [(6)  the reduction of the principal amount of that
  part of a debt:
                     [(A)  incurred during a marriage;
                     [(B)  secured by a lien on property owned by a
  spouse;
                     [(C)  for which the creditor agreed to look for
  repayment solely to the separate marital estate of the spouse on
  whose property the lien attached; and
                     [(D)  incurred for the acquisition of, or for
  capital improvements to, property;
               [(7)  the refinancing of the principal amount described
  by Subdivisions (3)-(6), to the extent the refinancing reduces that
  principal amount in a manner described by the applicable
  subdivision;
               [(8)  capital improvements to property other than by
  incurring debt; and
               [(9)  the reduction by the community property estate of
  an unsecured debt incurred by the separate estate of one of the
  spouses].
         (b)  A spouse seeking reimbursement to a marital estate must
  prove:
               (1)  that the spouse or both spouses used property of
  the marital estate to confer a benefit on the property of another
  marital estate;
               (2)  the value of the benefit described by Subdivision
  (1); and
               (3)  that unjust enrichment of the benefited estate
  will occur if the benefited estate is not required to reimburse the
  conferring estate.
         (c)  For purposes of this subchapter, the property of a
  marital estate confers a benefit on another marital estate's
  property if:
               (1)  one or both spouses used property of the
  conferring estate to pay a debt, liability, or expense that in
  equity and good conscience should have been paid from the benefited
  estate's property;
               (2)  one or both spouses used property of the
  conferring estate to make improvements on the benefited estate's
  real property, and the improvements resulted in an enhancement in
  the value of the benefited estate's real property; or
               (3)  one or both spouses used time, toil, talent, or
  effort to enhance the value of property of a spouse's separate
  estate beyond that which was reasonably necessary to manage and
  preserve the spouse's separate property, and for which the
  community marital estate did not receive adequate compensation.
         (d)  For purposes of this subchapter, the value of the
  benefit conferred by the property of one marital estate on the
  property of another marital estate is determined as of the date of
  the trial's commencement and:
               (1)  if the benefit resulted from the use of the
  conferring estate's property to pay a debt, liability, or expense
  that in equity and good conscience should have been paid from the
  benefited estate's property, then the value of the benefit
  conferred is measured by the amount of the debt, liability, or
  expense paid by the conferring estate;
               (2)  if the benefit resulted from the use of the
  conferring estate's property to make improvements on the benefited
  estate's real property, then the value of the benefit conferred is
  measured by the enhancement in the value of the benefited estate's
  real property that resulted from the improvements; or
               (3)  if the benefit resulted from the use of time, toil,
  talent, or effort to enhance the value of property of a spouse's
  separate estate, then the value of the benefit conferred is
  measured by the value of the time, toil, talent, or effort beyond
  that which was reasonably necessary to manage and preserve the
  spouse's separate property.
         (e)  The determination of whether unjust enrichment will
  occur if one marital estate is not required to reimburse another
  marital estate is a question for the court to decide.
         (f)  The court shall resolve a claim for reimbursement by
  using equitable principles, including the principle that claims for
  reimbursement may be offset against each other if the court
  determines it to be appropriate.
         (g)  A claim for reimbursement of a marital estate by one
  spouse may be offset by the value of any related benefit that the
  other spouse proves that the conferring estate received from the
  benefited estate, including:
               (1)  the value of the use and enjoyment of the property
  by the conferring estate, except that the separate marital estate
  of a spouse may not claim an offset for use and enjoyment of a
  primary or secondary residence owned wholly or partly by the
  separate marital estate against contributions made by the community
  marital estate to the separate marital estate;
               (2)  income received by the conferring estate from the
  property of the benefited estate; or
               (3)  any reduction in the amount of any income tax
  obligation of the conferring estate by virtue of the conferring
  estate claiming tax-deductible items relating to the property of
  the benefited estate, such as depreciation, interest, taxes,
  maintenance, or other deductible payments.
         (h) [(c)  Benefits for the use and enjoyment of property may
  be offset against a claim for reimbursement for expenditures to
  benefit a marital estate, except that the separate estate of a
  spouse may not claim an offset for use and enjoyment of a primary or
  secondary residence owned wholly or partly by the separate estate
  against contributions made by the community estate to the separate
  estate.
         [(d)    Reimbursement for funds expended by a marital estate
  for improvements to another marital estate shall be measured by the
  enhancement in value to the benefited marital estate.
         [(e)]  The party seeking an offset to a claim for
  reimbursement has the burden of proof with respect to the offset.
         SECTION 3.  Section 3.404(b), Family Code, is amended to
  read as follows:
         (b)  A claim for reimbursement under this subchapter does not
  create an ownership interest in property, but does create a claim
  against the property of the benefited estate by the conferring
  [contributing] estate.  The claim matures on dissolution of the
  marriage or the death of either spouse.
         SECTION 4.  Section 3.406, Family Code, is amended to read as
  follows:
         Sec. 3.406.  EQUITABLE LIEN.  (a)  On dissolution of a
  marriage, the court may impose an equitable lien on the property of
  a benefited [marital] estate to secure a claim for reimbursement
  against that property by a conferring [contributing marital]
  estate.
         (b)  On the death of a spouse, a court may, on application for
  a claim for reimbursement brought by the surviving spouse, the
  personal representative of the estate of the deceased spouse, or
  any other person interested in the estate, as defined by Chapter 22,
  Estates Code, impose an equitable lien on the property of a
  benefited [marital] estate to secure a claim for reimbursement
  against that property by a conferring [contributing marital]
  estate.
         SECTION 5.  Subchapter E, Chapter 3, Family Code, is amended
  by adding Section 3.411 to read as follows:
         Sec. 3.411.  CUMULATIVE REMEDIES. The remedies provided by
  this subchapter are not exclusive and are in addition to any other
  remedy provided by law.
         SECTION 6.  The change in law made by this Act applies to a
  claim for reimbursement that is pending in a trial court on the
  effective date of this Act or that is filed on or after that date.
         SECTION 7.  This Act takes effect September 1, 2023.