HBA-SEB H.B. 2142 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2142
By: Goodman
Juvenile Justice and Family Issues
3/11/1999
Introduced



BACKGROUND AND PURPOSE 

Under current law, a spouse in a suit for the dissolution of a marriage
must prove that an increase in value of separate property results from the
spouse's time, toil, and effort in order for the increase in value to be
considered community property and for the spouse to be reimbursed for that
effort. H.B. 2142 creates the presumption that an increase in the value of
separate property is community property and that the increase in value
results from the time, toil, and effort of one or both spouses. In this
way, in order for an increase in value of separate property to not be
considered community property, a spouse must prove that the increase in the
value is not due to the time, toil, and effort of the other spouse. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 3.003, Family Code, by adding Subsections (c)
and (d), as follows: 

(c)  Provides that the appreciation or increase in value during a marriage
of separate property owned by a spouse due to the time, toil, and effort of
one or both of the spouses during the marriage or due to the financial
contributions made with community property for the separate property is
presumed to be community property.  Authorizes that presumption to be
rebutted only to the extent that the spouse who owns the separate property
proves by clear and convincing evidence that the appreciation or increase
in value is not due to the time, toil, or effort of either spouse during
the marriage. 

(d)  Provides that the amount of a contribution from community property
that is used to discharge all or part of a debt on separate property under
Subsection (c) is considered to be the amount by which the principal of the
debt was reduced during the marriage.  Provides that the community interest
in the separate property subject to the debt is computed by dividing the
amount of the contribution from community property by the amount of the
original principal on the debt. 

SECTION 2.  Amends Section 7.002, Family Code, to require the court in a
decree of divorce or annulment to order a division of property that
appreciated or increased in value during a marriage as provided by Section
3.003 (Presumption of Community Property).  Makes a conforming change. 

SECTION 3.  Effective date: September 1, 1999.  Provides that this Act
applies to a suit for dissolution of marriage pending on that date or filed
after that date. 

SECTION 4.  Emergency clause.