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