Reimbursement

Houston, Texas, Reimbursement Lawyer

Reimbursements or economic contribution may be a factor in your divorce settlement if you or your spouse has separate property.

How reimbursements work

In a Texas marriage, there can be, basically, three property estates: the husband's separate property, the wife's separate property, and the community property of the husband and wife. If one estate benefits another, then the estate making the contribution is entitled to a reimbursement during the divorce settlement. The amount of the reimbursement is driven by the estate making the contribution.

Here are two examples of how reimbursements work:

• If a wife contributes $10,000 of her separate property money to the separate property business of her husband, she is entitled to a reimbursement of that $10,000 in the event of a divorce. If proven, it would be dollar-for-dollar.
• If a husband contributes $10,000 of community property money to repair a wife's separate property boat, then the husband is entitled to a reimbursement. The amount reimbursed would be the same percentage used for division of other community property. For example, if the community property split was 50-50, the husband would receive 50 percent of the $10,000, or $5,000.

Economic contribution and how it works

In Texas, economic contribution is a form of reimbursement used for a spouse's community property contributions toward a spouse's separate property home. For example, if you contributed $30,000 of community property money toward mortgage payments and home repairs, you would be entitled to a reimbursement of your economic contribution toward the house. Economic contribution rules are very complex and it usually takes an accountant to determine how much you are entitled to receive.

Contact me for assistance

As a board-certified family law attorney, I can help you understand how reimbursements and economic contributions apply in your case. Contact me today if you are looking for an experienced attorney to guide you through the property division process. I serve clients in Houston, Texas, and all surrounding communities.