The How and Why Behind Reimbursement Claims – Part III – This blog is Part III of our ongoing conversation on reimbursement claims in divorce-related matters. In the first two parts of this series, we provided a general overview of what reimbursement claims are, followed by the first of three factors that must be established in order for a reimbursement claim to be considered viable.
Below are the links to the first two blogs, for those of you who are picking up this blog series for the first time.
The second factor that must be established in any reimbursement claim is that the contribution meets the reimbursement standards of the Texas Family Code. In other words, is the contribution reimbursable to begin with?
Here are “somewhat comprehensive” lists of what is considered reimbursable or not. Remember that there are certain extenuating circumstances in each divorce case that may change the outcome of certain claims (in other words, claims that are thought to be reimbursable on paper end up being non reimbursable). You will need to have a qualified and knowledgeable family law attorney in your corner to help guide you through the process.
- Payments by one marital estate to unsecured liabilities (credit cards, taxes, interest, utility payments, judgement debts).
- Payments by community estate to reduce amount of an unsecured debt incurred by a spouse’s separate estate.
- Payments made by one marital estate that reduce the principal amount of certain debts secured by a lien on property owned by another marital estate
- Payments made for the purpose of capital or non-capital improvements on property owned by another marital estate
- A spouse’s time, toil, talent, and effort
- Contributions toward initial purchase price of property owned by another estate
- Contributions toward life insurance premiums owned by another estate
- One estate’s guarantee of the debt owned by another estate
- Premarital contributions
Non Reimbursable Claims
- Payments for child and spousal support
- Payments for community living expenses
- Nominal property contributions
- Nominal liability payments
- Repayment of student loans
- Spousal gifts
- Market increases
- Fraud and waste of community assets
We will discuss the value of a contribution next week.
If you are going through a divorce and feel you are entitled to be reimbursed for specific expenses, contact Nelson Law Group, PC to learn more about how this law relates to your specific situation. As we’ve said time and time again, every divorce case is different, and requires a keen legal eye to decipher what is just and right for each party involved. We are always accessible, and we truly love hearing from our clients.