FAMILY CODE
SUBTITLE B. PROPERTY RIGHTS AND LIABILITIES
CHAPTER 3. MARITAL PROPERTY RIGHTS AND LIABILITIES
SUBCHAPTER A. GENERAL RULES FOR SEPARATE AND COMMUNITY PROPERTY
§ 3.001. SEPARATE PROPERTY. A spouse's separate
property consists of:
(1) the property owned or claimed by the spouse before
marriage;
(2) the property acquired by the spouse during
marriage by gift, devise, or descent; and
(3) the recovery for personal injuries sustained by
the spouse during marriage, except any recovery for loss of earning
capacity during marriage.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.002. COMMUNITY PROPERTY. Community property
consists of the property, other than separate property, acquired by
either spouse during marriage.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.003. PRESUMPTION OF COMMUNITY
PROPERTY. (a) Property possessed by either spouse during or on
dissolution of marriage is presumed to be community property.
(b) The degree of proof necessary to establish that property
is separate property is clear and convincing evidence.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.004. RECORDATION OF SEPARATE PROPERTY. (a) A
subscribed and acknowledged schedule of a spouse's separate
property may be recorded in the deed records of the county in which
the parties, or one of them, reside and in the county or counties in
which the real property is located.
(b) A schedule of a spouse's separate real property is not
constructive notice to a good faith purchaser for value or a
creditor without actual notice unless the instrument is
acknowledged and recorded in the deed records of the county in which
the real property is located.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.005. GIFTS BETWEEN SPOUSES. If one spouse makes a
gift of property to the other spouse, the gift is presumed to
include all the income and property that may arise from that
property.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.006. PROPORTIONAL OWNERSHIP OF PROPERTY BY MARITAL
ESTATES. If the community estate of the spouses and the separate
estate of a spouse have an ownership interest in property, the
respective ownership interests of the marital estates are
determined by the rule of inception of title.
Added by Acts 1999, 76th Leg., ch. 692, § 1, eff. Sept. 1, 1999.
Amended by Acts 2001, 77th Leg., ch. 838, § 3, eff. Sept. 1,
2001.
SUBCHAPTER B. MANAGEMENT, CONTROL, AND DISPOSITION OF MARITAL
PROPERTY
§ 3.101. MANAGING SEPARATE PROPERTY. Each spouse has
the sole management, control, and disposition of that spouse's
separate property.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.102. MANAGING COMMUNITY PROPERTY. (a) During
marriage, each spouse has the sole management, control, and
disposition of the community property that the spouse would have
owned if single, including:
(1) personal earnings;
(2) revenue from separate property;
(3) recoveries for personal injuries; and
(4) the increase and mutations of, and the revenue
from, all property subject to the spouse's sole management,
control, and disposition.
(b) If community property subject to the sole management,
control, and disposition of one spouse is mixed or combined with
community property subject to the sole management, control, and
disposition of the other spouse, then the mixed or combined
community property is subject to the joint management, control, and
disposition of the spouses, unless the spouses provide otherwise by
power of attorney in writing or other agreement.
(c) Except as provided by Subsection (a), community
property is subject to the joint management, control, and
disposition of the spouses unless the spouses provide otherwise by
power of attorney in writing or other agreement.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.103. MANAGING EARNINGS OF MINOR. Except as provided
by Section 264.0111, during the marriage of the parents of an
unemancipated minor for whom a managing conservator has not been
appointed, the earnings of the minor are subject to the joint
management, control, and disposition of the parents of the minor,
unless otherwise provided by agreement of the parents or by
judicial order.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
Amended by Acts 2001, 77th Leg., ch. 964, § 1, eff. Sept. 1,
2001.
§ 3.104. PROTECTION OF THIRD PERSONS. (a) During
marriage, property is presumed to be subject to the sole
management, control, and disposition of a spouse if it is held in
that spouse's name, as shown by muniment, contract, deposit of
funds, or other evidence of ownership, or if it is in that spouse's
possession and is not subject to such evidence of ownership.
(b) A third person dealing with a spouse is entitled to
rely, as against the other spouse or anyone claiming from that
spouse, on that spouse's authority to deal with the property if:
(1) the property is presumed to be subject to the sole
management, control, and disposition of the spouse; and
(2) the person dealing with the spouse:
(A) is not a party to a fraud on the other spouse
or another person; and
(B) does not have actual or constructive notice
of the spouse's lack of authority.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
SUBCHAPTER C. MARITAL PROPERTY LIABILITIES
§ 3.201. SPOUSAL LIABILITY. (a) A person is
personally liable for the acts of the person's spouse only if:
(1) the spouse acts as an agent for the person; or
(2) the spouse incurs a debt for necessaries as
provided by Subchapter F, Chapter 2.
(b) Except as provided by this subchapter, community
property is not subject to a liability that arises from an act of a
spouse.
(c) A spouse does not act as an agent for the other spouse
solely because of the marriage relationship.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.202. RULES OF MARITAL PROPERTY LIABILITY. (a) A
spouse's separate property is not subject to liabilities of the
other spouse unless both spouses are liable by other rules of law.
(b) Unless both spouses are personally liable as provided by
this subchapter, the community property subject to a spouse's sole
management, control, and disposition is not subject to:
(1) any liabilities that the other spouse incurred
before marriage; or
(2) any nontortious liabilities that the other spouse
incurs during marriage.
(c) The community property subject to a spouse's sole or
joint management, control, and disposition is subject to the
liabilities incurred by the spouse before or during marriage.
(d) All community property is subject to tortious liability
of either spouse incurred during marriage.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.203. ORDER IN WHICH PROPERTY IS SUBJECT TO
EXECUTION. (a) A judge may determine, as deemed just and
equitable, the order in which particular separate or community
property is subject to execution and sale to satisfy a judgment, if
the property subject to liability for a judgment includes any
combination of:
(1) a spouse's separate property;
(2) community property subject to a spouse's sole
management, control, and disposition;
(3) community property subject to the other spouse's
sole management, control, and disposition; and
(4) community property subject to the spouses' joint
management, control, and disposition.
(b) In determining the order in which particular property is
subject to execution and sale, the judge shall consider the facts
surrounding the transaction or occurrence on which the suit is
based.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
SUBCHAPTER D. MANAGEMENT, CONTROL, AND DISPOSITION OF MARITAL
PROPERTY UNDER UNUSUAL CIRCUMSTANCES
§ 3.301. MISSING, ABANDONED, OR SEPARATED SPOUSE.
(a) A spouse may file a sworn petition stating the facts that
make it desirable for the petitioning spouse to manage, control,
and dispose of community property described or defined in the
petition that would otherwise be subject to the sole or joint
management, control, and disposition of the other spouse if:
(1) the other spouse has disappeared and that
spouse's location remains unknown to the petitioning spouse, unless
the spouse is reported to be a prisoner of war or missing on public
service;
(2) the other spouse has permanently abandoned the
petitioning spouse; or
(3) the spouses are permanently separated.
(b) The petition may be filed in a court in the county in
which the petitioner resided at the time the separation began, or
the abandonment or disappearance occurred, not earlier than the
60th day after the date of the occurrence of the event. If both
spouses are nonresidents of this state at the time the petition is
filed, the petition may be filed in a court in a county in which any
part of the described or defined community property is located.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
Amended by Acts 2001, 77th Leg., ch. 217, § 23, eff. Sept. 1,
2001.
§ 3.302. SPOUSE MISSING ON PUBLIC SERVICE. (a) If a
spouse is reported by an executive department of the United States
to be a prisoner of war or missing on the public service of the
United States, the spouse of the prisoner of war or missing person
may file a sworn petition stating the facts that make it desirable
for the petitioner to manage, control, and dispose of the community
property described or defined in the petition that would otherwise
be subject to the sole or joint management, control, and
disposition of the imprisoned or missing spouse.
(b) The petition may be filed in a court in the county in
which the petitioner resided at the time the report was made not
earlier than six months after the date of the notice that a spouse
is reported to be a prisoner of war or missing on public service. If
both spouses were nonresidents of this state at the time the report
was made, the petition shall be filed in a court in a county in which
any part of the described or defined property is located.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.303. APPOINTMENT OF ATTORNEY. (a) Except as
provided by Subsection (b), the court may appoint an attorney in a
suit filed under this subchapter for the respondent.
(b) The court shall appoint an attorney in a suit filed
under this subchapter for a respondent reported to be a prisoner of
war or missing on public service.
(c) The court shall allow a reasonable fee for an appointed
attorney's services as a part of the costs of the suit.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.304. NOTICE OF HEARING; CITATION. (a) Notice of
the hearing, accompanied by a copy of the petition, shall be issued
and served on the attorney representing the respondent, if an
attorney has been appointed.
(b) If an attorney has not been appointed for the
respondent, citation shall be issued and served on the respondent
as in other civil cases.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.305. CITATION BY PUBLICATION. (a) If the
residence of the respondent, other than a respondent reported to be
a prisoner of war or missing on public service, is unknown, citation
shall be published in a newspaper of general circulation published
in the county in which the petition was filed. If that county has no
newspaper of general circulation, citation shall be published in a
newspaper of general circulation in an adjacent county or in the
nearest county in which a newspaper of general circulation is
published.
(b) The notice shall be published once a week for two
consecutive weeks before the hearing, but the first notice may not
be published after the 20th day before the date set for the hearing.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.306. COURT ORDER FOR MANAGEMENT, CONTROL, AND
DISPOSITION OF COMMUNITY PROPERTY. (a) After hearing the
evidence in a suit under this subchapter, the court, on terms the
court considers just and equitable, shall render an order
describing or defining the community property at issue that will be
subject to the management, control, and disposition of each spouse
during marriage.
(b) The court may:
(1) impose any condition and restriction the court
deems necessary to protect the rights of the respondent;
(2) require a bond conditioned on the faithful
administration of the property; and
(3) require payment to the registry of the court of all
or a portion of the proceeds of the sale of the property, to be
disbursed in accordance with the court's further directions.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.307. CONTINUING JURISDICTION OF COURT; VACATING
ORIGINAL ORDER. (a) The court has continuing jurisdiction over
the court's order rendered under this subchapter.
(b) On the motion of either spouse, the court shall amend or
vacate the original order after notice and hearing if:
(1) the spouse who disappeared reappears;
(2) the abandonment or permanent separation ends; or
(3) the spouse who was reported to be a prisoner of war
or missing on public service returns.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
Amended by Acts 2001, 77th Leg., ch. 217, § 24, eff. Sept. 1,
2001.
§ 3.308. RECORDING ORDER TO AFFECT REAL PROPERTY. An
order authorized by this subchapter affecting real property is not
constructive notice to a good faith purchaser for value or to a
creditor without actual notice unless the order is recorded in the
deed records of the county in which the real property is located.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
§ 3.309. REMEDIES CUMULATIVE. The remedies provided in
this subchapter are cumulative of other rights, powers, and
remedies afforded spouses by law.
Added by Acts 1997, 75th Leg., ch. 7, § 1, eff. April 17, 1997.
SUBCHAPTER E. EQUITABLE INTEREST OF COMMUNITY ESTATE IN ENHANCED
VALUE OF SEPARATE PROPERTY
§ 3.401. DEFINITIONS. In this subchapter:
(1) "Claim for economic contribution" means a claim
made under this subchapter.
(2) "Economic contribution" means the contribution to
a marital estate described by Section 3.402.
(3) "Equity" means, with respect to specific property
owned by one or more marital estates, the amount computed by
subtracting from the fair market value of the property as of a
specific date the amount of a lawful lien specific to the property
on that same date.
(4) "Marital estate" means one of three estates:
(A) the community property owned by the spouses
together and referred to as the community marital estate;
(B) the separate property owned individually by
the husband and referred to as a separate marital estate; or
(C) the separate property owned individually by
the wife, also referred to as a separate marital estate.
(5) "Spouse" means a husband, who is a man, or a wife,
who is a woman. A member of a civil union or similar relationship
entered into in another state between persons of the same sex is not
a spouse.
Added by Acts 1999, 76th Leg., ch. 692, § 2, eff. Sept. 1, 1999.
Amended by Acts 2001, 77th Leg., ch. 838, § 2, eff. Sept. 1,
2001.
§ 3.402. ECONOMIC CONTRIBUTION. (a) For purposes of
this subchapter, "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;
(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;
(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;
(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;
(5) the refinancing of the principal amount described
by Subdivisions (1)-(4), to the extent the refinancing reduces that
principal amount in a manner described by the appropriate
subdivision; and
(6) capital improvements to property other than by
incurring debt.
(b) "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.
Added by Acts 1999, 76th Leg., ch. 692, § 2, eff. Sept. 1, 1999.
Amended by Acts 2001, 77th Leg., ch. 838, § 2, eff. Sept. 1,
2001.
§ 3.403. CLAIM BASED ON ECONOMIC CONTRIBUTION. (a) A
marital estate that makes an economic contribution to property
owned by another marital estate has a claim for economic
contribution with respect to the benefited estate.
(b) The amount of the claim under this section is equal to
the product of:
(1) the equity in the benefited property on the date of
dissolution of the marriage, the death of a spouse, or disposition
of the property; multiplied by
(2) a fraction of which:
(A) the numerator is the economic contribution to
the property owned by the benefited marital estate by the
contributing marital estate; and
(B) the denominator is an amount equal to the sum
of:
(i) the economic contribution to the
property owned by the benefited marital estate by the contributing
marital estate; and
(ii) the contribution by the benefited
estate to the equity in the property owned by the benefited estate.
(b-1) The amount of the contribution by the benefited
marital estate under Subsection (b)(2)(B)(ii) is measured by
determining:
(1) if the benefited estate is the community property
estate:
(A) the net equity of the community property
estate in the property owned by the community property estate as of
the date of the first economic contribution to that property by the
contributing separate property estate; and
(B) any additional economic contribution to the
equity in the property owned by the community property estate made
by the benefited community property estate after the date described
by Subdivision (A); or
(2) if the benefited estate is the separate property
estate of a spouse:
(A) the net equity of the separate property
estate in the property owned by the separate property estate as of
the date of the first economic contribution to that property by the
contributing community property estate or the separate property
estate of the other spouse; and
(B) any additional contribution to the equity in
the property owned by the separate property estate made by the
benefited separate property estate after the date described by
Subdivision (A).
(c) The amount of a claim under this section may be less than
the total of the economic contributions made by the contributing
estate, but may not cause the contributing estate to owe funds to
the benefited estate.
(d) The amount of a claim under this section may not exceed
the equity in the property on the date of dissolution of the
marriage, the death of a spouse, or disposition of the property.
(e) The use and enjoyment of property during a marriage for
which a claim for economic contribution to the property exists does
not create a claim of an offsetting benefit against the claim.
Added by Acts 1999, 76th Leg., ch. 692, § 2, eff. Sept. 1, 1999.
Amended by Acts 2001, 77th Leg., ch. 838, § 2, eff. Sept. 1,
2001; Acts 2003, 78th Leg., ch. 230, § 1, eff. Sept. 1, 2003.
§ 3.404. APPLICATION OF INCEPTION OF TITLE RULE;
OWNERSHIP INTEREST NOT CREATED. (a) This subchapter does not
affect the rule of inception of title under which the character of
property is determined at the time the right to own or claim the
property arises.
(b) The claim for 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.
Added by Acts 1999, 76th Leg., ch. 692, § 2, eff. Sept. 1, 1999.
Amended by Acts 2001, 77th Leg., ch. 838, § 2, eff. Sept. 1,
2001.
§ 3.405. MANAGEMENT RIGHTS. This subchapter does not
affect the right to manage, control, or dispose of marital property
as provided by this chapter.
Added by Acts 1999, 76th Leg., ch. 692, § 2, eff. Sept. 1, 1999.
Amended by Acts 2001, 77th Leg., ch. 838, § 2, eff. Sept. 1,
2001.
§ 3.406. EQUITABLE LIEN. (a) On dissolution of a
marriage, the court shall impose an equitable lien on property of a
marital estate to secure a claim for economic contribution in that
property by another marital estate.
(b) On the death of a spouse, a court shall, on application
for a claim 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
economic contribution by a contributing marital estate.
(c) Subject to homestead restrictions, an equitable lien
under this section may be imposed on the entirety of a spouse's
property in the marital estate and is not limited to the item of
property that benefited from an economic contribution.
Added by Acts 1999, 76th Leg., ch. 692, § 2, eff. Sept. 1, 1999.
Amended by Acts 2001, 77th Leg., ch. 838, § 2, eff. Sept. 1,
2001.
§ 3.407. OFFSETTING CLAIMS. The court shall offset a
claim for one marital estate's economic contribution in a specific
asset of a second marital estate against the second marital
estate's claim for economic contribution in a specific asset of the
first marital estate.
Added by Acts 2001, 77th Leg., ch. 838, § 2, eff. Sept. 1, 2001.
§ 3.408. CLAIM FOR REIMBURSEMENT. (a) A claim for
economic contribution does not abrogate another claim for
reimbursement in a factual circumstance not covered by this
subchapter. In the case of a conflict between a claim for economic
contribution under this subchapter and a claim for reimbursement,
the claim for economic contribution, if proven, prevails.
(b) A claim for reimbursement includes:
(1) payment by one marital estate of the unsecured
liabilities of another marital estate; and
(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.
(c) 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.
(d) Benefits for the use and enjoyment of property may be
offset against a claim for reimbursement for expenditures to
benefit a marital estate on property that does not involve a claim
for economic contribution to the property.
Added by Acts 2001, 77th Leg., ch. 838, § 2, eff. Sept. 1, 2001.
§ 3.409. NONREIMBURSABLE CLAIMS. The court may not
recognize a marital estate's claim for reimbursement for:
(1) the payment of child support, alimony, or spousal
maintenance;
(2) the living expenses of a spouse or child of a
spouse;
(3) contributions of property of a nominal value;
(4) the payment of a liability of a nominal amount; or
(5) a student loan owed by a spouse.
Added by Acts 2001, 77th Leg., ch. 838, § 2, eff. Sept. 1, 2001.
§ 3.410. EFFECT OF MARITAL PROPERTY AGREEMENTS. A
premarital or marital property agreement, whether executed before,
on, or after September 1, 1999, that satisfies the requirements of
Chapter 4 is effective to waive, release, assign, or partition a
claim for economic contribution under this subchapter to the same
extent the agreement would have been effective to waive, release,
assign, or partition a claim for reimbursement under the law as it
existed immediately before September 1, 1999, unless the agreement
provides otherwise.
Added by Acts 2001, 77th Leg., ch. 838, § 2, eff. Sept. 1, 2001.
