1. The Nature of Reimbursement in Texas
A claim for reimbursement is an equitable economic remedy recognized by Texas Family Code Chapter 3, Subchapter E. Reimbursement is NOT an ownership interest in the property itself; rather, it creates a money judgment or equitable lien against the benefited estate in favor of the contributing estate.
2. Permissible Statutory Reimbursement Categories (§ 3.402)
Reimbursement claims are strictly governed by Texas Family Code § 3.402(a):
- Debt Reduction (§ 3.402(a)(1)): Payment by one marital estate of the unsecured debts or purchase money mortgage principal of another estate.
- Capital Improvements (§ 3.402(a)(2)): Inadequate compensation for capital improvements made to property of another estate.
- Life Insurance Premiums (§ 3.402(a)(4)): Premiums paid on a policy owned by a separate estate with community funds.
- Jensen Claims (§ 3.402(a)(6)): Inadequate compensation paid to a spouse for labor, time, and effort expended on a separate property business.
3. Statutory Measurement Standards
Reimbursement is NOT measured identically across all categories:
- Mortgage Principal: Dollar-for-dollar reduction of debt principal (interest, property taxes, and home insurance are non-reimbursable living expenses).
- Capital Improvements: Measured by the enhancement in value of the property resulting from the improvement, limited by the actual cost incurred (§ 3.402(d)).
4. Offsets for Use and Enjoyment (§ 3.403)
Under Tex. Fam. Code § 3.403, the benefited estate can assert an equitable offset against a reimbursement claim if the contributing estate enjoyed the use and benefit of the asset (e.g., the community living rent-free in a spouse's separate property home).