A spouse in a Texas divorce may have a reimbursement claim if they use their own separate property to fund improvements to the other spouse’s separate property. Likewise, if community funds are used for the benefit of a spouse’s property, the spouse may be ordered to reimburse the community. The party seeking reimbursement must plead and prove the claim, including showing that the funds used were their separate property. Courts must resolve claims for reimbursement using principles of equity.
A husband recently challenged a trial court’s denial of his reimbursement claims. According to the appeals court’s opinion, both parties had significant separate property when they married in 2010. The husband owned one home and the wife owned two. They bought a new house 2014. The husband sold his home and used $141,000 of the proceeds for the new house. The wife sold one of her homes and used $150,000 from that sale on the new home.
Testimony Regarding Husband’s Reimbursement Claim
The husband also paid about $70,000 for a pool at the new house. He claimed the funds were his separate property, but the wife testified she thought he had used community funds.