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.