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  S.B. No. 866
 
 
 
 
AN ACT
  relating to the rights and liabilities of the parties in a suit for
  dissolution of a marriage and certain post-dissolution
  proceedings.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (d), Section 3.007, Family Code, is
  amended to read as follows:
         (d)  A spouse who is a participant in an employer-provided
  stock option plan or an employer-provided restricted stock plan has
  a separate property interest in the options or restricted stock
  granted to the spouse under the plan as follows:
               (1)  if the option or stock was granted to the spouse
  before marriage but required continued employment during marriage
  before the grant could be exercised or the restriction removed, the
  spouse's separate property interest is equal to the fraction of the
  option or restricted stock in which:
                     (A)  the numerator is the sum of:
                           (i)  the period from the date the option or
  stock was granted until the date of marriage; and
                           (ii)  if the option or stock also required
  continued employment following the date of dissolution of the
  marriage before the grant could be exercised or the restriction
  removed, the period from the date of dissolution of the marriage
  until the date the grant could be exercised or the restriction
  removed; and
                     (B)  the denominator is the period from the date
  the option or stock was granted until the date the grant could be
  exercised or the restriction removed; and
               (2)  if the option or stock was granted to the spouse
  during the marriage but required continued employment following the
  date of dissolution of the [after] marriage before the grant could
  be exercised or the restriction removed, the spouse's separate
  property interest is equal to the fraction of the option or
  restricted stock in which:
                     (A)  the numerator is the period from the date of
  dissolution [or termination] of the marriage until the date the
  grant could be exercised or the restriction removed; and
                     (B)  the denominator is the period from the date
  the option or stock was granted until the date the grant could be
  exercised or the restriction removed.
         SECTION 2.  The heading to Subchapter E, Chapter 3, Family
  Code, is amended to read as follows:
  SUBCHAPTER E. CLAIMS FOR [ECONOMIC CONTRIBUTION AND] REIMBURSEMENT
         SECTION 3.  Section 3.402, Family Code, is amended to read as
  follows:
         Sec. 3.402.  CLAIM FOR REIMBURSEMENT; OFFSETS [ECONOMIC
  CONTRIBUTION]. (a)  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)  ["economic contribution" is the dollar amount of:
               [(1)]  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) [(2)]  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) [(3)]  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) [(4)]  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) [(5)]  the refinancing of the principal amount
  described by Subdivisions (3)-(6) [(1)-(4)], to the extent the
  refinancing reduces that principal amount in a manner described by
  the applicable [appropriate] subdivision; [and]
               (8) [(6)]  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)  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.
         (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 ["Economic
  contribution" does not include the dollar amount of:
               [(1)     expenditures for ordinary maintenance and repair
  or for taxes, interest, or insurance; or
               [(2)     the contribution by a spouse of time, toil,
  talent, or effort during the marriage].
         SECTION 4.  Subsection (b), Section 3.404, Family Code, is
  amended to read as follows:
         (b)  A [The] claim for reimbursement [economic contribution
  created] 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 contributing estate. The claim
  matures on dissolution of the marriage or the death of either
  spouse.
         SECTION 5.  Subsections (a) and (b), Section 3.406, Family
  Code, are amended to read as follows:
         (a)  On dissolution of a marriage, the court may [shall]
  impose an equitable lien on the property of a benefited marital
  estate to secure a claim for reimbursement against [economic
  contribution in] that property by a contributing [another] marital
  estate.
         (b)  On the death of a spouse, a court may [shall], on
  application for a claim for reimbursement [of economic
  contribution] 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 Section 3, Texas
  Probate Code, impose an equitable lien on the property of a
  benefited marital estate to secure a claim for reimbursement
  against that property [economic contribution] by a contributing
  marital estate.
         SECTION 6.  Section 3.410, Family Code, is amended to read as
  follows:
         Sec. 3.410.  EFFECT OF MARITAL PROPERTY AGREEMENTS. A
  premarital or marital property agreement, whether executed before,
  on, or after September 1, 2009 [1999], that satisfies the
  requirements of Chapter 4 is effective to waive, release, assign,
  or partition a claim for economic contribution, reimbursement, or
  both, under this subchapter to the same extent the agreement would
  have been effective to waive, release, assign, or partition a claim
  for economic contribution, reimbursement, or both under the law as
  it existed immediately before September 1, 2009 [1999], unless the
  agreement provides otherwise.
         SECTION 7.  Section 7.007, Family Code, is amended to read as
  follows:
         Sec. 7.007.  DISPOSITION OF CLAIM FOR [ECONOMIC CONTRIBUTION
  OR CLAIM FOR] REIMBURSEMENT. [(a)     In a decree of divorce or
  annulment, the court shall determine the rights of both spouses in a
  claim for economic contribution as provided by Subchapter E,
  Chapter 3, and in a manner that the court considers just and right,
  having due regard for the rights of each party and any children of
  the marriage, shall:
               [(1)     order a division of a claim for economic
  contribution of the community marital estate to the separate
  marital estate of one of the spouses;
               [(2)     order that a claim for an economic contribution
  by one separate marital estate of a spouse to the community marital
  estate of the spouses be awarded to the owner of the contributing
  separate marital estate; and
               [(3)     order that a claim for economic contribution of
  one separate marital estate in the separate marital estate of the
  other spouse be awarded to the owner of the contributing marital
  estate.
         [(b)]  In a decree of divorce or annulment, the court shall
  determine the rights of both spouses in a claim for reimbursement as
  provided by Subchapter E, Chapter 3, and shall apply equitable
  principles to:
               (1)  determine whether to recognize the claim after
  taking into account all the relative circumstances of the spouses;
  and
               (2)  order a division of the claim for reimbursement,
  if appropriate, in a manner that the court considers just and right,
  having due regard for the rights of each party and any children of
  the marriage.
         SECTION 8.  Section 9.014, Family Code, is amended to read as
  follows:
         Sec. 9.014.  ATTORNEY'S FEES. The court may award
  reasonable attorney's fees [as costs] in a proceeding under this
  subchapter. The court may order the attorney's fees to be paid
  directly to the attorney, who may enforce the order for fees in the
  attorney's own name by any means available for the enforcement of a
  judgment for debt.
         SECTION 9.  Subchapter B, Chapter 9, Family Code, is amended
  by adding Section 9.106 to read as follows:
         Sec. 9.106.  ATTORNEY'S FEES. In a proceeding under this
  subchapter, the court may award reasonable attorney's fees incurred
  by a party to a divorce or annulment against the other party to the
  divorce or annulment. The court may order the attorney's fees to be
  paid directly to the attorney, who may enforce the order for fees in
  the attorney's own name by any means available for the enforcement
  of a judgment for debt.
         SECTION 10.  Section 9.205, Family Code, is amended to read
  as follows:
         Sec. 9.205.  ATTORNEY'S FEES. In a proceeding to divide
  property previously undivided in a decree of divorce or annulment
  as provided by this subchapter, the court may award reasonable
  attorney's fees [as costs]. The court may order the attorney's fees
  to be paid directly to the attorney, who may enforce the order in
  the attorney's own name by any means available for the enforcement
  of a judgment for debt.
         SECTION 11.  The following laws are repealed:
               (1)  Subsections (a), (b), and (f), Section 3.007,
  Family Code;
               (2)  Subdivisions (1), (2), and (3), Section 3.401,
  Family Code;
               (3)  Section 3.403, Family Code;
               (4)  Subsection (c), Section 3.406, Family Code; and
               (5)  Sections 3.407 and 3.408, Family Code.
         SECTION 12.  The changes in law made by this Act to Section
  3.007, Family Code, apply to:
               (1)  a suit for dissolution of a marriage pending
  before a trial court on or filed on or after the effective date of
  this Act; and
               (2)  the estate of a person who dies on or after the
  effective date of this Act.
         SECTION 13.  (a)  In regard to a claim under Subchapter E,
  Chapter 3, Family Code, that arises from a suit for dissolution of a
  marriage, the changes in law made by this Act to that subchapter
  apply only to a claim made in a suit filed on or after the effective
  date of this Act. A claim made in a suit filed before the effective
  date of this Act is governed by the law in effect on the date the
  suit was filed, and the former law is continued in effect for that
  purpose.
         (b)  In regard to a claim under Subchapter E, Chapter 3,
  Family Code, that arises from the death of a spouse, the changes in
  law made by this Act to that subchapter apply only to a claim
  arising from a death that occurs on or after the effective date of
  this Act. A claim arising from a death that occurs before the
  effective date of this Act is governed by the law in effect on the
  date of death, and the former law is continued in effect for that
  purpose.
         SECTION 14.  The changes in law made by this Act to Chapter
  9, Family Code, apply only to a proceeding commenced under that
  chapter on or after the effective date of this Act. A proceeding
  commenced under Chapter 9, Family Code, before the effective date
  of this Act is governed by the law in effect immediately before that
  date, and the former law is continued in effect for that purpose.
         SECTION 15.  This Act takes effect September 1, 2009.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 866 passed the Senate on
  April 9, 2009, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 29, 2009, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 866 passed the House, with
  amendment, on May 19, 2009, by the following vote: Yeas 145,
  Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor