CHAPTER 7. AWARD OF MARITAL PROPERTY

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FAMILY CODE

TITLE 1. THE MARRIAGE RELATIONSHIP

SUBTITLE C. DISSOLUTION OF MARRIAGE

CHAPTER 7. AWARD OF MARITAL PROPERTY

Sec. 7.001. GENERAL RULE OF PROPERTY DIVISION. In a decree of

divorce or annulment, the court shall order a division of the

estate of the parties in a manner that the court deems just and

right, having due regard for the rights of each party and any

children of the marriage.

Added by Acts 1997, 75th Leg., ch. 7, Sec. 1, eff. April 17,

1997.

Sec. 7.002. DIVISION AND DISPOSITION OF CERTAIN PROPERTY UNDER

SPECIAL CIRCUMSTANCES. (a) In addition to the division of the

estate of the parties required by Section 7.001, in a decree of

divorce or annulment the court shall order a division of the

following real and personal property, wherever situated, in a

manner that the court deems just and right, having due regard for

the rights of each party and any children of the marriage:

(1) property that was acquired by either spouse while domiciled

in another state and that would have been community property if

the spouse who acquired the property had been domiciled in this

state at the time of the acquisition; or

(2) property that was acquired by either spouse in exchange for

real or personal property and that would have been community

property if the spouse who acquired the property so exchanged had

been domiciled in this state at the time of its acquisition.

(b) In a decree of divorce or annulment, the court shall award

to a spouse the following real and personal property, wherever

situated, as the separate property of the spouse:

(1) property that was acquired by the spouse while domiciled in

another state and that would have been the spouse's separate

property if the spouse had been domiciled in this state at the

time of acquisition; or

(2) property that was acquired by the spouse in exchange for

real or personal property and that would have been the spouse's

separate property if the spouse had been domiciled in this state

at the time of acquisition.

the following as the separate property of a spouse if partitioned

or exchanged by written agreement of the spouses:

(1) income and earnings from the spouses' property, wages,

salaries, and other forms of compensation received on or after

January 1 of the year in which the suit for dissolution of

marriage was filed; or

(2) income and earnings from the spouses' property, wages,

salaries, and other forms of compensation received in another

year during which the spouses were married for any part of the

year.

Added by Acts 1997, 75th Leg., ch. 7, Sec. 1, eff. April 17,

1997. Amended by Acts 1999, 76th Leg., ch. 692, Sec. 4, eff.

Sept. 1, 1999; Acts 2001, 77th Leg., ch. 838, Sec. 4, eff. Sept.

1, 2001; Acts 2003, 78th Leg., ch. 230, Sec. 4, eff. Sept. 1,

2003.

Sec. 7.003. DISPOSITION OF RETIREMENT AND EMPLOYMENT BENEFITS

AND OTHER PLANS. In a decree of divorce or annulment, the court

shall determine the rights of both spouses in a pension,

retirement plan, annuity, individual retirement account, employee

stock option plan, stock option, or other form of savings, bonus,

profit-sharing, or other employer plan or financial plan of an

employee or a participant, regardless of whether the person is

self-employed, in the nature of compensation or savings.

Added by Acts 1997, 75th Leg., ch. 7, Sec. 1, eff. April 17,

1997.

Sec. 7.004. DISPOSITION OF RIGHTS IN INSURANCE. In a decree of

divorce or annulment, the court shall specifically divide or

award the rights of each spouse in an insurance policy.

Added by Acts 1997, 75th Leg., ch. 7, Sec. 1, eff. April 17,

1997.

Sec. 7.005. INSURANCE COVERAGE NOT SPECIFICALLY AWARDED. (a)

If in a decree of divorce or annulment the court does not

specifically award all of the rights of the spouses in an

insurance policy other than life insurance in effect at the time

the decree is rendered, the policy remains in effect until the

policy expires according to the policy's own terms.

(b) The proceeds of a valid claim under the policy are payable

as follows:

(1) if the interest in the property insured was awarded solely

to one former spouse by the decree, to that former spouse;

(2) if an interest in the property insured was awarded to each

former spouse, to those former spouses in proportion to the

interests awarded; or

(3) if the insurance coverage is directly related to the person

of one of the former spouses, to that former spouse.

endorsement on the policy to reflect the distribution of proceeds

established by this section does not relieve the insurer of

liability to pay the proceeds or any other obligation on the

policy.

(d) This section does not affect the right of a former spouse to

assert an ownership interest in an undivided life insurance

policy, as provided by Subchapter D, Chapter 9.

Added by Acts 1997, 75th Leg., ch. 7, Sec. 1, eff. April 17,

1997.

Sec. 7.006. AGREEMENT INCIDENT TO DIVORCE OR ANNULMENT. (a) To

promote amicable settlement of disputes in a suit for divorce or

annulment, the spouses may enter into a written agreement

concerning the division of the property and the liabilities of

the spouses and maintenance of either spouse. The agreement may

be revised or repudiated before rendition of the divorce or

annulment unless the agreement is binding under another rule of

law.

(b) If the court finds that the terms of the written agreement

in a divorce or annulment are just and right, those terms are

binding on the court. If the court approves the agreement, the

court may set forth the agreement in full or incorporate the

agreement by reference in the final decree.

in a divorce or annulment are not just and right, the court may

request the spouses to submit a revised agreement or may set the

case for a contested hearing.

Added by Acts 1997, 75th Leg., ch. 7, Sec. 1, eff. April 17,

1997.

Sec. 7.007. DISPOSITION OF CLAIM FOR REIMBURSEMENT. In a

decree of divorce or annulment, the court shall determine the

rights of both spouses in a claim for reimbursement as provided

by Subchapter E, Chapter 3, and shall apply equitable principles

to:

(1) determine whether to recognize the claim after taking into

account all the relative circumstances of the spouses; and

(2) order a division of the claim for reimbursement, if

appropriate, in a manner that the court considers just and right,

having due regard for the rights of each party and any children

of the marriage.

Added by Acts 2001, 77th Leg., ch. 838, Sec. 5, eff. Sept. 1,

2001.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

768, Sec. 7, eff. September 1, 2009.

Sec. 7.008. CONSIDERATION OF TAXES. In ordering the division of

the estate of the parties to a suit for dissolution of a

marriage, the court may consider:

(1) whether a specific asset will be subject to taxation; and

(2) if the asset will be subject to taxation, when the tax will

be required to be paid.

Added by Acts 2005, 79th Leg., Ch.

168, Sec. 1, eff. September 1, 2005.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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