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Dawson during 1989 was community property or her separate
property.
The pertinent Texas statute defines community property as
“the property, other than separate property, acquired by either
spouse during marriage.” Tex. Fam. Code Ann. sec. 5.01(b) (West
1993). We have previously held that the well-established rule in
Texas is that the term “acquired” as it is used in the statute
refers to the origin or inception of title. Johnson v.
Commissioner, supra at 344. In Johnson v. Commissioner, supra at
344, we reasoned as follows:
Consequently, a spouse who acquires property during
marriage must acquire some legal title to the property
before such property will be characterized as community
property. Hence, if a spouse acquires possession of
property without title, the property remains the
separate property of such spouse.
* * * * * * *
Under Texas law, where property is acquired
illegally, whether title to such property passes to the
illegal taker depends on whether the owner intended to
pass both possession and title to the illegal taker.
[Citations omitted.]
We must accordingly consider whether petitioner has carried
his burden of proving that PAHHS and BHHS did not intend to pass
to Ms. Dawson both possession of and title to the funds she
embezzled in 1989. Ms. Dawson was authorized to issue the
payroll checks in her name that represented the embezzled funds.
She was responsible for and had signature authority over all of
the payroll checking accounts maintained by PAHHS and BHHS and
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