By: Cook (Senate Sponsor - Hughes)	H.B. No. 1547
	(In the Senate - Received from the House May 1, 2023;
	May 2, 2023, read first time and referred to Committee on
	Jurisprudence; May 10, 2023, reported favorably by the following
	vote:  Yeas 5, Nays 0; May 10, 2023, sent to printer.)
Click here to see the committee vote

	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.
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