How you can be reimbursed for past purchases during your Texas Divorce

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Houston Divorce Attorneys: Part of any divorcein Texas is figuring out how to characterize the property owned by the two spouses. If you are considering a divorce or have just been served with a petition by divorce filed by your spouse then you are probably wondering how all the “stuff” that you and your spouse own will be divided in the divorce.

Today’s blog from the Law Office of Bryan Fagan, PLLC is designed with you in mind if that is the case.

Separate property vs. Community property

Property in the context of a divorce is typically divided up into three categories. Most everyone going through a divorce is aware that Texas is a community property state. This represents the first of the three categories.

Community Property

Community property is basically any property that is acquired by either you or your spouse during the course of your marriage with a few exceptions for inherited property and things of that nature.

Separate Property

Both you and your spouse have your own separate estates as well, meaning that each of you are able to own property separately from one another. Essentially any property that you owned prior to your marriage is categorized as separate property belonging to either of you.

When we think about separate property the theory in Texas is that because you or your spouse owned the property before you ever got married the other spouse has no claim to whatever property is being discussed.

Can you contribute money to the separate property of your spouse and be reimbursed?

It can happen that you contribute money and resources that benefit the separate property of your spouse. For example, if your spouse owns a home that is in actuality her separate property but your income has been used to pay for a renovation of the kitchen or towards the mortgage itself you are in a position where the community estate has been used to benefit the separate estate of your spouse.

A reimbursement claim is one that can allow you to be recouped for that expenditure.

Divorce Attorneys Houston: Not all money spent by the community estate on one of your or your spouse’s separate estates can be reimbursed, however. Let’s review those expenditures that are reimbursable.

> If your community estate has been used to pay for an improvement to the separate estate of your spouse then you may be able to be reimbursed in your divorce for that expenditure. An example of this situation would be your having paid to build a tennis court on the property owned by your spouse that is his separate property.

> The community estate pays towards the separate debt (a mortgage or a credit card, for example) of your spouse’s separate estate.

> The other big area that I have seen reimbursement occur is if you work for your spouse’s business which is later determined to be his separate property and you were not paid for that work or were paid an insufficient amount. In this scenario you can push to be reimbursed during the course of your divorce.

In the event that a judge does order a reimbursement payment be made from the separate estate of your spouse, that payment will go towards whichever estate- your separate estate or the community estate- actually contributed to the separate property of your spouse.

If it was the community estate, that payment would need to be divided up in a just and right manner like all other property included in the community estate.

The State of Texas sees reimbursement as a means to make to even out the contributions that one spouse’s separate property or their jointly held property made to the other’s separate property. These contributions can take the form of money or the form of labor as we have previously discussed.

Presenting a claim for reimbursement in your divorce case at large

It is one thing to believe that you have case for reimbursement and another to actually prove that reimbursement case. To win a reimbursement case you must be able to show a court that a contribution was made- either from your separate estate or from the community estate- towards the benefit of your spouse’s separate estate.

One you are able to establish that a contribution was made and that it falls into one of the aforementioned categories you will need to prove the value of that contribution.

Having documentary evidence to help prove a claim for reimbursement can be incredibly helpful.

Documents related to the closing on a house or piece of property, bank transaction records and other financial instruments can assist you and your attorney in determining if you have a leg to stand on when it comes to presenting a reimbursement claim before a judge.

These are issues that are extremely complex and often times require the assistance of an outside expert to help determine what property belongs in what estate. With that said, you should always hire an attorney to represent you and assist you in making these sort of determinations.

Family lawattorneys have experience in helping people like you make difficult decisions regarding their divorce and I cannot emphasize enough how critical it is to have an attorney advocating for you in a reimbursement situation.

Your attorney can assist you in stating to the court and to your spouse the nature of your reimbursement claim which should be made in your original petition for divorce.

Questions on divorce or reimbursement claims? Contact the Law Office of Bryan Fagan, PLLC today

Divorce Attorney in Houston: If you have any questions related to this article or any other subject in family law please do not hesitate to contact the Law Office of Bryan Fagan, PLLC. One of our licensed family law attorneys is available six days a week to answer your questions in a free of charge consultation.

Divorce is not an easy process to go through and you need an experienced advocate on your side. Our office proudly represents clients across southeast Texas and we would be proud to do the same for you and your family ... Continue Reading