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Texas Family Code - Section 3.403. Claim Based On Economic Contribution

Legal Research Home > Texas Lawyer > Family Code > Texas Family Code - Section 3.403. Claim Based On Economic Contribution

§ 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.

Last modified: August 11, 2007