Reimbursement is an equitable right arises in a Texas divorce when the property of one marital estate is used to the benefit of another marital estate, resulting in unjust enrichment to the benefited estate if not repaid. Tex. Fam. Code § 3.402. A spouse may pursue a reimbursement claim, for example, if community property funds are used to pay the debt for or make improvements to the other spouse’s separate property. The court must apply equitable principles to determine if it will recognize a claim for reimbursement, considering the relative circumstances of both parties and, if the court determines the reimbursement claim is appropriate, it must order a just and right division of the claim for reimbursement, with regard for the rights of the parties and children. Tex. Fam. Code § 7.007. The spouse seeking reimbursement has the burden of proving that the property of one marital estate was used by one or both spouses to benefit another marital estate, the value of that benefit, and that the benefited estate will be unjustly enriched if reimbursement is not required. Tex. Fam. Code § 3.402(b). The trial court has broad discretion in determining reimbursement claims.
In a recent case, a former husband appealed the divorce decree that did not award him reimbursement. The wife petitioned for divorce in 2022, after nearly 50 years of marriage. In his counterpetition, the husband made a claim for reimbursement, but the court did not award him reimbursement in the final divorce decree.
The Husband’s Appeal
The husband appealed, arguing the trial court did not properly apply the law regarding reimbursement of the community estate. The judge stated, “whatever she took with her [in 2016] the marriage was still ongoing . . . . I cannot go back in time and fix that.” The husband argued the court misstated the law.