A reimbursement claim asks a Texas court to compensate one marital estate (community or separate) because its property paid debts, made improvements, or contributed time, toil, talent, or effort to another estate without adequate pay—otherwise the benefited estate would be unjustly enriched (Tex. Fam. Code §§ 3.402, 3.404, 3.409, 7.007).¹,²
What Is a Reimbursement Claim in Texas?
Key takeaway: Reimbursement is an equitable remedy. It is not automatic. Judges decide based on fairness and documented value, and they apply offsets before making a “just and right” division.¹,²
In a Texas divorce, the community estate and each spouse’s separate estate are treated as distinct “marital estates.” If one estate confers a benefit on another—by paying principal on a debt, funding capital improvements, or contributing uncompensated labor—Texas law allows the conferring estate to seek reimbursement so the benefited estate is not unjustly enriched.¹ The spouse seeking reimbursement must prove three core elements:
- Use of property: Community or separate funds or efforts were used for the other estate’s property.¹
- Value of the benefit: Measured by statute—principal reduction, enhancement from improvements, or value of uncompensated labor beyond mere preservation.¹,⁴
- Unjust enrichment: Without reimbursement, the benefited estate would keep a windfall.¹
Where do these claims show up most?
- Mortgage paydowns on a spouse’s premarital home (separate realty).¹
- Capital improvements to separate property (measured by enhancement, not cost).¹
- Uncompensated time, toil, talent, or effort (TTT&E) devoted to a spouse’s separate business or home—often called the Jensen concept.⁴,⁸
Reimbursement interacts with the judge’s overall “just and right” division at divorce. Courts determine the reimbursable amount (after offsets), then incorporate it into the property division rather than awarding ownership of the benefited property.¹,²
How to build a viable claim (quick steps):
- Identify which estates are involved (community, your separate, spouse’s separate).¹
- Tie each payment or work effort to the other estate’s specific property.¹
- Gather proof of amounts and dates (bank statements, loan histories, invoices).
- Document value added (appraisal; CPA/business valuation).¹
- Prepare for offsets (use/enjoyment, income, tax benefits).¹
- Plead the claim, exchange discovery, mediate, and try if needed.²
- Request an equitable lien to secure payment when appropriate.¹
Community vs. Separate Basics & Where Claims Arise
Key takeaway: Texas presumes all property acquired during marriage is community. A spouse who claims separate property must prove it by clear and convincing evidence.¹,⁶,⁷
Community & Separate Property Basics
- Community property: Generally, assets acquired by either spouse during marriage (wages, savings, most purchases).¹,⁶
- Separate property: Assets owned before marriage; gifts or inheritances to one spouse; and certain personal‑injury recoveries.¹,⁶
- Community presumption & tracing: Everything acquired during marriage is presumed community. To rebut, the claiming spouse must trace to a separate source with clear and convincing evidence.¹,⁶,⁷
Where Claims Arise Between Estates
- Community → Spouse’s separate estate: Community funds paying down principal on a premarital mortgage. Measure is principal reduction.¹
- Community → Capital improvements to separate realty: Value measured by enhancement, not cost; proof usually requires appraisal.¹
- Community labor → Separate business/home (Jensen): Reimbursement for uncompensated time, toil, talent, or effort beyond mere preservation.⁴,⁸
Case Study: Reimbursing Community Funds Spent on a Separate Home
Personal Experience from Attorney Christopher Migliaccio
Recently, I met with a Dallas homeowner who brought receipts to our office. They were facing divorce and worried because community funds had paid down the mortgage and remodeled a premarital home. As we talked through their options, I noticed the invoices told a clear story by date, purpose, and amount. This reminded me why valuation and offsets matter much. We worked together to trace principal reduction, get a before‑and‑after appraisal for the kitchen, and hire a CPA to estimate labor value. What struck me most was how fairness requires math and empathy. Over my nearly 20 years practicing law, I’ve learned that good records win close questions. This case reinforced preparation turns uncertainty into leverage. Every situation is unique, but the principles remain constant. When families trust us with their property issues, we take that responsibility seriously. If you’re facing something similar, know that there’s always a path forward.
What Qualifies vs. What Does Not (Nonreimbursable)
Key takeaway: Not every transfer qualifies. Texas law lists nonreimbursable items, and offsets may reduce otherwise valid claims.¹
Qualifying patterns (examples):
- Principal reduction on separate‑property debt (e.g., premarital mortgage).¹
- Capital improvements that increase value; prove enhancement with credible appraisal evidence.¹
- Uncompensated TTT&E to a spouse’s separate business or property that goes beyond preservation.⁴,⁸
Nonreimbursable by statute (§ 3.409):
Child support, spousal maintenance/alimony, ordinary living expenses, nominal contributions/liabilities, and student loans—these do not support reimbursement.¹
Offsets that commonly apply:
Use/enjoyment of the property, income received, depreciation and other tax benefits. Courts weigh these to avoid unjust enrichment in the other direction.¹,⁵
Are routine household bills reimbursable?
No. Routine living costs are nonreimbursable under § 3.409.¹ Courts distinguish daily expenses from enhancements or principal reduction to separate property. Focus your proof on improvements that increased value or lowered principal—and be ready for offsets tied to your use of the property.¹
Do we get interest on reimbursement?
Not as a rule. Reimbursement is equitable, not contractual. Courts craft remedies (including offsets and equitable liens), but interest isn’t guaranteed and depends on fairness, proof, and the overall division under § 7.001 and § 7.007.¹,²
How Texas Courts Decide (Factors, Offsets, Discretion)
Key takeaway: Judges apply equitable principles with broad discretion. They measure value under § 3.402(d), apply offsets (§ 3.402(f)–(h)), then fold the result into a just‑and‑right division.¹,²
Statutory guideposts:
- § 3.402(d): How to measure value (principal reduction; enhancement; value of uncompensated labor).¹
- § 3.402(f)–(h): Burdens and offsets.¹
- § 3.404: Claim matures at dissolution or death; reimbursement does not create ownership.¹
- § 3.406: Court may impose an equitable lien to secure payment.¹
- § 7.007 & § 7.001: Court decides reimbursement and then makes a just‑and‑right division.²
Practical factors we see move outcomes: Quality of documentation; credible expert proof; duration and size of contributions; applicable offsets; and any enforceable marital agreements (§ 3.410).¹
Texas Supreme Court cases underscore these themes: Jensen clarifies labor claims and valuation; Penick emphasizes offsets and trial‑court discretion, including tax benefits.⁴,⁵,⁸
What evidence moves the needle most?
Appraisals, complete loan histories, invoices/receipts, CPA or valuation reports, and time logs. Pair each payment with statements showing the other estate’s benefit, plus before/after analysis for improvements.¹
How are community labor claims valued?
Courts measure the value of time, toil, talent, or effort beyond preservation—often via expert testimony or comparable compensation—not the separate property’s total appreciation.⁴,⁸
What offsets commonly reduce recovery?
Use/enjoyment of the property, income from the property, and tax benefits (interest deductions, depreciation, property taxes). Courts net these against the claimed benefit.¹,⁵
Proving Value & Timeline (Evidence, Calculations, Process)
Key takeaway: Win on value and timing. Show amounts conferred and the benefit measured exactly as the statute directs.¹
Value of the benefit (§ 3.402(d)):
- Debt payments → reimbursable amount equals principal reduction.¹
- Improvements → reimbursable amount equals enhancement in value (not cost).¹
- Labor → reimbursable amount equals value of uncompensated effort beyond preservation.¹,⁴
Process flow:
Plead the claim early → exchange discovery → obtain appraisals/valuations → mediate → try if needed → request an equitable lien to secure payment.¹,²
Comparison table (mobile‑friendly):
Caption: How courts measure value in common reimbursement scenarios (alt text: “Table comparing evidence and measures for mortgage paydowns, remodels, and labor”).
Scenario | Evidence to Gather | Statutory Measure |
|---|---|---|
Mortgage paydowns on separate home | Monthly statements; payoff history | Principal reduction (not interest).¹ |
Kitchen remodel to separate home | Invoices; before/after appraisal | Enhancement in value (not cost).¹ |
Running spouse’s separate business | Time logs; market pay data; CPA report | Value of uncompensated labor beyond preservation.¹,⁴ |
Can we raise reimbursement after divorce?
The claim matures at dissolution or death, but you must plead it in the divorce for the court to decide it then. Post‑decree options are limited and fact‑specific—act early.¹
Can a prenup waive reimbursement?
Yes. Marital agreements may waive or assign reimbursement claims if they satisfy Chapter 4; the Family Code recognizes agreements affecting reimbursement (§ 3.410).¹
Can reimbursement attach to property?
Courts may impose an equitable lien on benefited property to secure payment and ensure collection.¹
Do we need experts?
Often, yes. Appraisers, CPAs, or valuation experts are key to proving enhancement and the value of labor, which are central under § 3.402(d).¹
Does refinancing change the claim?
It depends on principal reduction and tracing. Keep complete loan files to show how community funds conferred a benefit even through a refinance sequence.¹
Interactive tools (use with your attorney):
- Reimbursement Claim Evidence Checklist: payments, dates, purpose, property ID, estate source, matching statements, appraisal, offset proof (tax/use).
- Estimator (rough):
- Principal reduction = total principal paid with community funds.
- Improvement value = (post‑work appraised value – pre‑work value), capped by credible evidence.
- Labor = hours × market rate for comparable services minus any compensation received.
Notes: Courts apply offsets and discretion; this is not legal advice.
- Decision Tree—Does This Expense Qualify?
- Debt principal or value‑increasing improvement? → proceed.
- Routine living cost/child support/student loan? → likely nonreimbursable.¹
- Any significant use/enjoyment or tax benefits? → expect offsets.
Quick Answers: Micro Q&A
- Who can seek reimbursement? Either spouse, on behalf of any marital estate, in the divorce.¹
- Is it automatic? No. It is equitable and discretionary, proven by evidence and value.¹,²
- Do living costs count? No. Routine expenses are nonreimbursable under § 3.409.¹
- Student loans? Excluded under § 3.409(5).¹
- What proof is vital? Payments, dates, source of funds, and value at trial.¹
- Can we stack claims? Yes, but courts often offset them and net the result.¹
- Lien available? Yes—courts may use an equitable lien to secure payment.¹
- Change ownership? No. Reimbursement doesn’t create title.¹
- Judge’s standard? Just‑and‑right division after determining reimbursement.²
- Time logs matter? Yes—especially for labor claims (TTT&E).⁴,⁸
- Small payments? Nominal amounts may be excluded.¹
- Mediation? Common and effective before trial across DFW courts.
Common Mistakes We’ve Seen
- Not pleading reimbursement (or pleading it vaguely), risking waiver at trial.
- Confusing cost with enhancement for improvements; courts measure value added, not what you spent.¹
- Ignoring offsets (use, income, tax benefits) that can shrink or defeat a claim.¹,⁵
- Thin documentation: missing loan amortization, missing invoices, or no before/after appraisal.
- Treating reimbursement as automatic instead of an equitable, discretionary remedy.¹,²
- Overlooking marital agreements (§ 3.410) that waive or alter reimbursement rights.¹
- Waiting too long to retain experts (appraiser/CPA), leaving valuations unproven.
Texas Case Law Spotlight
Jensen v. Jensen (Tex. 1984): The Supreme Court recognized reimbursement for time, toil, talent, and effort contributed by the community to enhance a spouse’s separate property beyond mere preservation. On remand, courts must determine the value of that uncompensated labor, not simply award a share of appreciation.⁴,⁸
Penick v. Penick (Tex. 1988): Emphasizes the trial court’s broad discretion in reimbursement, including the use of offsets such as tax benefits and income. Penick confirms reimbursement aims to do equity, not to create ownership interests, and the court may tailor the remedy within a just‑and‑right division.⁵
Frequently Asked Questions
How do courts measure the “value of the benefit” for improvements?
By enhancement in value—what the property increased because of the improvement—not the dollars you spent. Judges often require a before/after appraisal or credible market analysis isolating the project’s effect. Receipts help, but the appraisal ties spending to value. Courts may also consider quality, permanence, and market conditions.¹
Can the community be reimbursed for principal reduction and also seek a share of appreciation?
Reimbursement covers principal reduction; appreciation is handled in the overall just‑and‑right division (community has no ownership in separate property). Courts sometimes consider appreciation context, but reimbursement itself is measured by the statute, and offsets may apply before the final property division.¹,²,⁵
How do we value uncompensated labor for a spouse’s separate business?
Under Jensen, prove hours and market rate for comparable services, subtract any compensation, and show the effort exceeded ordinary preservation. Expert testimony (CPA/valuation) and time logs are persuasive. Courts do not award a share of the business; they award the value of the benefit conferred.⁴,⁸
What happens if both estates owe each other?
Courts typically net competing reimbursement claims after applying offsets, then integrate the net figure into the just‑and‑right division. You still must prove each claim with evidence and valuations. Paper your file so the judge can follow the math.¹,²
Does reimbursement affect child custody or support?
No. Reimbursement is a property remedy. Conservatorship and support are separate determinations based on best interests and guidelines. Property rulings seldom change custody outcomes, but financial orders can affect resources available to each parent.¹
When should I hire an appraiser or CPA?
Early. Appraisers document enhancement, and CPAs support business or labor valuations. Waiting risks trial without persuasive numbers. Discovery deadlines and mediation often arrive faster than expected—retain experts during discovery, not after.¹
Can reimbursement be paid over time or secured?
Yes. Courts may order installments and secure the award with an equitable lien on the benefited property. The lien helps ensure payment without changing title.¹
How do courts treat nominal amounts?
Statute excludes nominal contributions. Bring clear proof that payments were substantial and meaningful to the property, not incidental or routine. Itemize and total by category to show significance.¹
Legal Authorities (Endnotes)
- Texas Family Code (Ch. 3 & 7) — Statutes — statutes.capitol.texas.gov (PDF).
- Tex. Fam. Code § 7.001 & § 7.007 (HTML view) — Statutes — statutes.capitol.texas.gov.
- HB 1547 (88R) — Enrolled — capitol.texas.gov (effective Sept. 1, 2023).
- Jensen v. Jensen, 665 S.W.2d 107 (Tex. 1984) — Justia Law.
- Penick v. Penick, 783 S.W.2d 194 (Tex. 1988) — vLex.
- TexasLawHelp — Community Property (2024) — TexasLawHelp.org.
- Texas State Law Library — Community Property Guide (2025) — sll.texas.gov.
- Texas Pattern Jury Charges—Family & Probate (TTT&E references) — The Portal to Texas History (UNT Libraries).
- Texas Bar — Family Law Article (reimbursement elements) — texasbar.com.
Next steps for North Texas families
Reimbursement claims turn on evidence, valuation, and timing. We prepare them daily in Dallas, Collin, Denton, and Tarrant County courts and resolve many in mediation.
Free consultation: Call (888) 584‑9614 or contact us online to schedule a consultation.
