Alfred Baker was married in 1984. In 1996 he received an inheritance of $300,000 and placed it in separate accounts, not marital bank accounts. As we’ve discussed earlier, an inheritance received during the course of a marriage is separate property and not community property. With these funds, Alfred spent $104,000 to pay off the mortgage and $50,000 on home improvements. Unfortunately Alfred’s marriage broke down and his wife filed for divorce in 2006.

In divorce court, Alfred’s wife agreed that he spent $104,000 on the mortgage. Her divorce attorney disputed the $50,000 reimbursement for home improvement and the judge was left to decide the issue.

The divorce court judge agreed with Alfred and awarded him a reimbursement claim for the full $154,000. Alfred’s wife was not satisfied and appealed the decision.

The appeals court reversed the $50,000 reimbursement based on insufficient evidence. The court discussed the following legal requirements to uphold Alfred’s claim:

1. When a party seeks reimbursement for a benefit conferred by his separate estate to the community estate, the party seeking reimbursement must prove the benefit arose from a separate estate by clear and convincing evidence.
2. When funds from one marital estate are used to make improvements to the property of another marital estate, the proper measure of reimbursement is not the amount paid to make the improvements, but the enhancement value of the receiving estate. Enhancement value is determined by the market value of the property before the improvements were made as compared to the market value of the property after the improvements were made.

Alfred’s only evidence to support his claim was his testimony. His divorce lawyer did not prove to the court’s satisfaction the enhancement value of the improvements. He did not present any receipts or documents showing specific expenditures as well as tracing the funds to the separate account. With such little evidence the court could not support his claim for reimbursement.

If you or your spouse used separate property to benefit the marital estate while you were married speak with a Woodlands Divorce Attorney today to protect your rights.

The Woodlands Divorce Resource is here to help you with your divorce, child custody, or other family law issue in Montgomery County or Harris County. Many of our visitors come from the areas of Conroe, Oak Ridge North, Cut and Shoot, and other communities in the Montgomery County area or Houston and North Harris County. If you need legal assistance with your family law issue speak with a Conroe Divorce Lawyer today.

Related posts:

1. How to Keep Your Property from Becoming Community Property
2. What Is Separate Property?
3. What is Community Property?

Community property is everything acquired during the marriage that is not properly identified as separate property. The Conroe and Houston Divorce Courts must presume that all property acquired during the marriage is community property unless either spouse can prove to the court by clear and convincing evidence that certain items are protected as separate property.

When Does This Presumption End?

The day your divorce decree is entered and final. The community property presumption remains in effect even after you or your spouse file for divorce all the way through the last day in court. Some individuals choose to use a property agreement while their divorce is pending in order to provide some protection from their spouse’s debts or to protect their own earnings. Speak with a Conroe Divorce Attorney today if you need help protecting your property during your divorce.

The Woodlands Divorce Resource is here to help you with your divorce, child custody, or other family law issue in Montgomery County or Harris County. Many of our visitors come from the areas of Conroe, Oak Ridge North, Cut and Shoot, and other communities in the Montgomery County area or Houston. If you need legal assistance with your family law issue speak with a The Woodlands Divorce Attorney today.

Related posts:

1. How to Keep Your Property from Becoming Community Property
2. What Is Separate Property?
3. Why You Won’t Get 50% of the Community Property

Separate property is:

(1) property owned or claimed by a spouse before marriage;

(2) property acquired by the spouse during marriage by gift, devise, or descent; and

(3) recovery for personal injuries sustained by the spouse during the marriage, except any recovery for loss of earning capacity during marriage.

Why separate property is important.

The local divorce courts have broad discretion to divide community property as the judge sees fit. The judges do not have the same power over a spouse’s separate property. If you own property that fits any of the above descriptions then your Houston Divorce Attorney can help you keep it and protect it from your soon to be ex-spouse.

Related posts:

1. How to Keep Your Property from Becoming Community Property
2. What is Community Property?
3. Division of Property

Any property on hand in a marriage is presumed to be community property. In order to rebut this presumption of community property, your Montgomery County Divorce Attorney must trace the property on hand during the marriage back to property that was separate (i.e. before the marriage) and continue up to the end of the marriage. This means the entire period from when you first obtained the property up to the date the divorce petition was filed. If you are successful, you can keep your separate property from becoming community property. If you fail, the Court may award significantly more of your separate property to your ex-spouse than he or she is entitled to.

How do you stop this from happening? Simply testifying and giving your word that property in question was originally separate and according to your recollection remained separate is almost always not accepted by the Court. To be successful, you must establish the separate nature of the property though clear and convincing evidence showing the time and means by which you originally obtained possession of the property. If you can provide that proof, then you have another hurdle to overcome.

Property in the form of bank accounts, retirement accounts, or investment accounts typically generate interest, dividends, or capital gains. During a Texas marriage, these items are considered community property even if the account creating the interest, dividend, or capital gain is entirely separate property. In order to preserve your original separate property during a divorce in Montgomery County, you must trace every item of income, deposits, and withdrawals for the entire period of the marriage to prove to the Court exactly how much of the account is still your separate property and how much is now community property.

This is your burden to prove. If the Court has any doubt about the exact value of separate property versus community property it can resolve the dispute as it sees fit. Speak with a Montgomery County Divorce Attorney today to help protect your rights and property while going through divorce.

Related posts:

1. What is Community Property?
2. What Is Separate Property?
3. Why You Won’t Get 50% of the Community Property