How to Prove a Reimbursement Claim in a Texas Divorce

Marriage is about the blending of two lives into one. Untangling those lives can get complicated, especially when one partner feels that marital assets were used to increase the value of their partner’s separate assets, over which they have no legal claim. 

That is the heart of reimbursement claims in Texas. Understanding how to prove a reimbursement claim in a Texas divorce and how such a claim may impact your high-net-worth divorce can put you in a better position to collect what’s fair.

Understanding Reimbursement Claims in Texas Divorce

Reimbursement claims in Texas during a divorce can be complicated and are not something that immediately arises during your initial divorce conversations. When partners marry, their assets fall into two categories: marital and separate property. Marital property or community property is any asset acquired during marriage that belongs to both spouses. These assets are subject to division upon divorce. Separate property includes assets owned by one individual before marriage or assets gifted or inherited by that individual during marriage, which are not necessarily subject to division. 

This is where understanding reimbursement claims in Texas becomes essential. Reimbursement claims can result when one spouse seeks compensation from the other when marital property or money was used to contribute to or enrich the other partner’s separate property. 

What Is a Reimbursement Claim Under Texas Law

A reimbursement claim under Texas family code 3.402 is designed to ensure fairness in the divorce process when one spouse has made a financial contribution through marital property to the enrichment of the other partner’s separate property. These enrichments could take the form of contributions or investments to a partner’s business, payments for home improvements to a spouse’s home purchased or acquired before marriage, or reductions in the mortgage principal. 

In simple terms, when marital assets contribute to the betterment of one spouse’s separate property, the other spouse deserves fair compensation for their contribution. 

Common Scenarios That Trigger Reimbursement Claims

While several scenarios can trigger a Texas reimbursement claim, the most common situation couples encounter involves marital assets used to pay off or contribute to a home purchased or acquired before the marriage. 

When one partner owns a home before marriage, that home is considered separate property. It is not automatically considered community property once a couple gets married and starts living in the house together. Once married, however, it is common for the spouse to begin contributing to the mortgage or spending marital assets to improve the quality or condition of the home. While the spouse does not have a legal claim to a portion of the house during the divorce because it is considered separate property, they may still be entitled to compensation for their financial contributions to the home because marital assets benefited the other partner’s separate property. 

Investments made by one spouse in the business interests of another spouse during marriage may also be subject to reimbursement claims. 

Essential Elements You Must Prove

The most essential element that a spouse must prove for a successful reimbursement claim is that marital assets materially improved separate property. This can require proving that the property should be considered separate by the court and demonstrating how community funds were used to make improvements or benefit the other spouse’s separate property. Paper trails, such as bank statements, tax forms, and other documentation, can help prove that community property was used to enrich a separate asset. 

Additionally, the spouse seeking the reimbursement claim must also demonstrate how the community funds increased the value or “improved” the separate property. Documentation must help answer the question, “What is the new value of the property?” 

Finally, Texas law seeks to divide marital property during divorce using the “just and right” standard. This often means that the spouse claiming reimbursement must also show that the marital asset contribution would unjustly enrich the other partner if the court does not reimburse them. 

Documentation Required to Support Your Claim

The key to a successful reimbursement claim is supporting your position with ample evidence. Detailed documentation is needed to show the court the extent of the contribution and how marital assets enriched or benefited the other spouse’s separate property. Documentation that can help support your claim may include: 

• Financial and bank statements
• Invoices 
• Receipts
• Tax forms 
• Deeds
• Appraisals 
• Business contracts 

Financial documents can help show how community funds contributed to the enrichment of the separate asset. In contrast, appraisals and other documents can show how the value of the individual asset increased. An experienced attorney can consult with financial experts to demonstrate how shared assets enhance the value of a separate property or asset. 

Calculating the Reimbursement Amoun

Calculating the reimbursement amount can be challenging and takes finesse, a skilled legal team, and financial experts. Not all expenses may qualify for reimbursement. Only those that directly increase the value of the separate property or contributions that directly reduce the principal of a debt are eligible. Calculating the value of a reimbursement is highly case-specific, and Texas judges have broad discretion in establishing what is “just and right” during a divorce case. It is best to speak with a skilled divorce attorney to help you understand how much your reimbursement claim may be worth. 

Legal Process for Filing a Reimbursement Claim

An experienced family law attorney can walk you through the exact process of filing a reimbursement claim. Most claims start with your attorney identifying the need for a reimbursement claim and how community assets were used to benefit a separate property. Your attorney can also begin collecting and preserving evidence and documentation outlining how marital funds were used to enhance the separate asset and establish a proposed value of the benefit. 

Once the legwork is complete, your attorney can file your reimbursement claim, including it in your divorce petition or proposed property division paperwork. The court must ensure your documentation meets the burden of proof, and then it can decide what constitutes a fair asset division. 

Your attorney can also advise you about exceptions to reimbursement claims, such as payments toward student loans and living expenses for a spouse or child. 

Contact Family Law Attorneys in Dallas Today

The family law attorneys at Balekian Hayes, PLLC, in Dallas, Texas, can guide you through the reimbursement claim process, ensure your voice is heard, and pursue the compensation you deserve. We are a forward-thinking law office that prioritizes you and your family during this stressful time.

Contact our Dallas office today to arrange a consultation with a compassionate local divorce attorney.